Jetrader - September/October 2011 - 49

appraisal

Boeing 777-200LR
Doug Kelly, Vice President – Asset Valuation AVITAS, Inc. Tel: 703-476-2300 doug.kelly@avitas.com

Background
Developed by Boeing to be the longest-range aircraft in the world, the 777-200LR ﬂew for the ﬁrst time in March 2005. The 777-200LR has a range of 9,395 nautical miles (with three optional auxiliary fuel tanks), and can ﬂy non-stop between cities such as New York to Singapore and Perth to London. Delivery of the ﬁrst aircraft to Pakistan International was in early 2006. The 2010 list price for the 777-200LR was $262.4 million.

Current and Future Market Outlook
While rounding out the 777 family, the 777-200LR may ultimately only attract interest from a small group of operators deploying it on ultra-long sectors for which it is designed. In addition to its long-range capability, the aircraft is able to carry up to 47,000 pounds more cargo than the 777-200ER on certain routes, such as Dubai to Los Angeles, and offer better takeoff performance at high altitude airports or short runways. Because the 777 Freighter is based off of the 777200LR platform, cargo conversion is a possibility in the future; however, the signiﬁcant cost of converting a 777-200LR to a freighter conﬁguration, which is believed to be in the range of $20 million to $25 million, will make it unlikely that such conversions will take place in the near term.

Basic Specs
Length: Wing Span: MTOW (000): Capacity: Range (nm): Engine models: 209 ft 1 in 212 ft 7 in 710,000 to 766,000 lbs 301 passengers in 3-class 9,395 nm with 301 passengers GE90-110B and GE90-115B

Boeing 777-200LR Regional Distribution As of April 2011 Region Africa/Middle East Asia/Paciﬁc Europe North America Grand Total In Service 22 11 0 17 50 Firm Orders 5 0 1 0 6 Options 0 4 0 0 4 Totals 27 15 1 17 60
Source: OAG Aviation

Year 2005 2006 2007 2008 2009 2010 2011

Current Market Value 95.5 102.1 109.1 117.7 128.9 141.2

2011 Base Value 100.5 107.4 114.8 123.3 132.7 143.0 150.2

Future Base Values at 1.5% Inﬂation 2012 95.1 102.0 109.1 116.5 125.2 134.7 141.9 2013 89.9 96.6 103.5 110.7 118.3 127.0 134.1 2014 84.8 91.2 98.0 105.1 112.4 120.0 126.4 2015 79.9 86.1 92.6 99.5 106.7 114.0 119.7 2016 75.3 81.1 87.4 94.0 101.0 108.3 113.9 2017 70.9 76.4 82.4 88.7 95.4 102.5 108.0 2018 66.6 71.9 77.6 83.6 90.0 96.8 102.2 2019 62.6 67.6 73.0 78.7 84.9 91.4 96.5 2020 58.8 63.6 68.7 74.1 79.9 86.1 91.0
st

2021 55.0 59.6 64.5 69.7 75.2 81.1 85.8

Source: AVITAS BlueBook of Jet Aircraft Values, 1 Half 2011 edition. 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.

In reaching our value opinions, we use data on actual market transactions, various analytical techniques, a proprietary forecasting model and our own extensive industry experience. Jetrader 49
Jetrader - September/October 2011

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