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appraisal Airbus A340-600 Dr. Stuart Hatcher, Head of Valuations & Modelling, IBA Group Ltd. Tel: +44 1293 772743 Email: stuart.hatcher@ibagroup.com Background Compared with the A340-300, the A340-600 features a 9.07m (35ft 1in) stretch (5.87m/19ft 3in ahead of the wing and 3.2m/10ft 6in behind). This gives Airbus a true early model for 747 replacement and a near direct competitor to the 747-400, with similar range and no ETOPS constraints. In contrast to the earlier A340 derivatives, the A340-600 is equipped with the considerably more powerful Rolls-Royce Trent 556 engines that are able to yield 56,000 lbs of thrust, give better fuel efﬁciency with lower emissions, improved performance from hot and high airports and no second segment climb limitation. Basic Specs: Wing Span – 208 ft 2 in Length – 247 ft 1 in Maximum Takeoff Weight – 804,600 to 837,800 lbs Maximum Landing Weight – 571,000 to 584,200 lbs Maximum Zero Fuel Weight – 540,100 to 553,400 lbs Operating Weight Empty –392,000 lbs Fuel Capacity – 51,746-plus U.S. Gallons Range – 380 passengers – 7,750-plus nm Passenger Conﬁguration: 419 Seats – 2 class / 380 Seats – 3 class Average Fleet Age – 3.28 years Current Fleet + Backlog by Region Region Africa/Middle East Asia/Paciﬁc Europe Latin America/Caribbean North America Private/Gov’t/Military/Mfg Undisclosed Total No. of Ops. 3 3 3 0 0 1 0 10 Total Fleet 16 13 50 0 0 1 0 80 % 20% 16% 63% 0% 0% 1% 0% 100% Orders 5 1 15 0 0 1 0 22 Stored 0 0 0 0 0 0 0 0 Note: Fleet statistics do not include Iberia EC-JOH MSN731 which is to be broken up after skidding off the runway at Quito Airport and F-WWCJ MSN856 due for delivery to Etihad that was destroyed in Toulouse. Current and Future Market Outlook Since launch there have only been a total of 142 orders from 16 customers—made worse when you consider that 28 percent of these have since been cancelled, making the total number ordered just 103 units. Direct competition for the A340-600 comes from the Boeing 777-300ER series aircraft with similar capacity and range characteristics. The delays with the A380 program ensured that the short to medium term demand for the A340-600 was sustained, although this is seriously hampered by the ever-growing popularity of the Boeing 777-300ER. When comparing the A340-600 to the 777-300ER, the Boeing product is able to provide a more economical solution through both fuel burn and maintenance cost and will likely relegate the Airbus product to second place in this part of the wide-body market. May 2008 Appraisal Values: Airbus A340-600, Rolls-Royce Trent 556, 8-11,300 lbs Year of Delivery 2008 2007 2006 2005 2004 2003 2002 CMV 129.500 121.047 113.980 107.990 102.716 98.014 93.829 2008* 129.50 121.05 113.70 107.45 101.95 97.04 92.67 2009* 120.57 112.53 105.97 100.42 95.53 91.17 87.28 2010* 111.97 104.77 98.92 93.98 89.63 85.75 82.29 2011* 104.14 97.69 92.46 88.06 84.19 80.73 77.65 2012* 96.99 91.20 86.53 82.60 79.15 76.07 73.32 2013* 90.43 85.23 81.05 77.55 74.47 71.72 69.27 2014* 84.39 79.72 75.98 72.85 70.10 67.65 65.46 2015* 78.83 74.62 71.27 68.47 66.01 63.82 61.86 2016* 73.67 69.88 66.87 64.36 62.17 60.20 58.46 2017* 68.88 65.46 62.75 60.50 58.54 56.78 55.22 2018* 64.41 61.32 58.88 56.86 55.10 53.52 52.12 *Base Values - Inﬂated at 2.5% per annum “CMV” = Current Market Value. Projected Base Values have been inﬂ ated at 2.5% per annum. The Base Value of an aircraft assumes its physical condition is average for an aircraft of its type and age, and its maintenance time status is at mid-life, mid-time (or beneﬁting from an above-average maintenance status if it is new or nearly new, as the case may be). All values have been determined in accordance with ISTAT deﬁnitions of Base Value and Current Market Value and therefore relate to a single asset only. The aircraft values stated herein are the product and property of independent third party sources, and ISTAT neither approves nor endorses the information contained herein or the use thereof for any purpose whatsoever. Information current as of 6/1/2008. Jetrader 25
Jetrader - July/August 2008

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