Jetrader - May/June 2008 - 3

from the president Jetrader is a bi-monthly publication of The International Society of Transport Aircraft Trading (ISTAT). ISTAT was founded in 1983 to act as a forum and to promote improved communications among those involved in aviation and supporting industries, who operate, manufacture, maintain, sell, purchase, finance, lease, appraise, insure or otherwise engage in activities related to transport category aircraft. Jetrader Published for: International Society of Transport Aircraft Trading 401 N. Michigan Ave. Suite 2400 Chicago, IL 60611 USA Phone: 312.321.5169 Fax: 312.673.6579 www.ISTAT.org E-mail: istat@istat.org ISTAT BOARD OF DIRECTORS OFFICERS Michael Platt President Thomas W. Hemisoth Immediate Past President John W. Vitale Vice President Gregory A. May Vice President Treasurer Connie Laudenschlager Vice President Secretary DIRECTORS Fred E. Bearden Anthony Diaz Sigthor Einarsson Jay W. Hancock Peter Huijbers Will Hudson Joseph W. Ozimek Marc Allinson Daniel J. Pietrzak Mark Pearman-Wright Stephen T. Rimmer Jep Thornton ISTAT INTERNATIONAL APPRAISERS’ PROGRAM BOARD OF GOVERNORS Fred E. Bearden - Chairman- Appraiser Fellow Steve Boecker Doug Emerson Jay Hancock Siggi Kristinsson Al Nigro Fred Klein Senior Appraiser Neil G. Whitehouse Senior Appraiser William Bath - Appraiser Fellow Administrative Director/ ISTAT Appraisers Program ISTAT FOUNDATION Stephen T. Rimmer Chairman Michael Platt ISTAT President Thomas W. Heimsoth ISTAT Past President Robert Brown Vice Chairman Gregory A. May Secretary Treasurer TRUSTEES Jon Batchelor Klaus Heinemann Dana Lockhart James Morris Roland H. Moore, Esq. Chris Partridge Nick Popovich David P. Sutton David Treitel Warren Willits INTERNATIONAL SOCIETY OF TRANSPORT AIRCRAFT TRADING Ron Pietrzak Executive Director Ben Barclay Project Coordinator Dana Henninger Member Services Tracy Schorle Marketing and Communication Services Michael Platt, President International Society of Transport Aircraft Trading I hope that all 1,121 of you who attended the 25th ISTAT conference in Orlando had a great time, saw many old friends, made some new friends and did some business while there. From my perspective and the board’s, the survey results and your perspective as well, our conferences just keep getting better, and I see more industry leaders, as well as new younger faces, at each one. Please enjoy the pictures we have published in this issue on pages 8-13. Since we left the conference we have been encountering turbulence! On March 16, JPMorgan Chase bought Bear Sterns for $2 a share. At the JPMorgan Transportation Conference later that same week, several US airlines spoke about decreasing domestic narrowbody capacity, while several lessors have brought packages of aircraft to the market for sale, and everyone is trying to ﬁgure out if it is possible to stay aﬂoat with oil trading at around $120 per barrel. Boeing, with a little prompting, has admitted that the 787 delays cannot all be blamed on supplier delays, and there is a wing box weight and structure issue that will lead to additional delays. Aloha Airlines, ATA, Skybus and Frontier have ﬁled for bankruptcy, and Northwest and Delta have merged. All this is happening while Open Skies is upon us, and we are already seeing a 5.6 percent increase in capacity on the North Atlantic for the summer of 2008 vs. the summer of 2007. Add to the mix of facts that February load factors showed the sharpest decline in load factors in the last four years, and Ryanair is closing its Dublin call center to save money. While everyone seems to be preparing themselves for the next cycle, Pratt & Whitney along with its partners Bombardier and Mitsubishi are touting 20 percent fuel burn improvement and similar direct operating expense improvements with the GTF engine on the C series and Mitsubishi jet. The Chinese and Russians are also moving forward with the ARJ-21 and the Sukhoi Superjet. Meanwhile, Boeing and Airbus are saying we won’t see a narrowbody replacement from them until close to 2020. On top of this, Airbus has announced price increases for its products. This is a lot of information for all of us to absorb and to ﬁgure out how we should react. While there is much we don’t know, what we do know is that ISTAT members will be busy. Some of us will be sellers and some will be buyers. There will be growth areas and areas of retrenchment. There will be winners and losers. There will be opportunities, but they will require hard work. As Thomas Edison said, “Opportunity is missed by most people because it is dressed in overalls and looks like work.” I expect the golf handicaps to creep up a little bit, as the industry will be working too hard searching out opportunities to sneak away for some spring golf! Jetrader 3

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Jetrader - May/June 2008

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