Possible E-Jet Re-engining Creates Residual Value Uncertainty.

The article reports on the impact of the possible re-engining of Airbus 320 (A320) and Boeing 737 (B737) on the regional jet market. Empresa Brasileira de Aeronautica (Embraer) is contemplating about the future of its E-Jet in the midst of potential operating efficiency erosion which necessitates the reconsideration of existing residual values for the aircraft category. The re-engined A320/B737NG provide better economics compared with existing larger regional jets. Regional jet manufacturers are currently facing lower rates of delivery.