Jetrader

Appraisal: Airbus A319-100

Overview and Background

The A319-100 is the smallest of the A320 narrowbody aircraft family. The A319-100 was conceived as a shorter variant of the A320-200, which had already proven its commercial viability since its introduction in 1988. The goal was to offer airlines a more efficient aircraft for routes with lower passenger demand while retaining the operational flexibility and commonality of the A320 family. Since its entry into service, the A319-100 aircraft has become popular among a number of different airline business models as a result of its design philosophy, which prioritizes fleet commonality, reducing complexity and pilot-friendly design.

The fuselage length was reduced by approximately 4 meters (12 feet), which originally allowed for maximum seating of 145 in a single-class seating or 124 passengers in a two-class configuration. Airbus later developed a second over-wing emergency exit option for easyJet, which increased maximum capacity to 156 passengers.

The A319-100 maintains many of the same features and capabilities as the A320-200. The A319-100 has two engine options available, the first being the CFM International CFM56 engine, with either CFM56-5A models for earlier vintages or CFM56-5B models for later in the production cycle. The Airbus A319-100 second option is the International Aero Engine V2500-A5. The aircraft range is approximately 6,900 kilometers (3,750 nautical miles) when equipped with “Sharklets.”

The aircraft also came with a variety of increased maximum takeoff weight (MTOW) options as well as the potential of up to two additional center fuel tanks (ACTs), providing the A319 with a relatively long range when compared to other narrowbody aircraft. Airbus continued to make improvements to the A319-100 throughout its production cycle, with Sharklets being available from 2013. This replaced the wingtip fences and resulted in, according to Airbus, a 4% fuel burn improvement and a resultant 500kg in additional payload.

Swissair became the launch customer for the A319-100 in April 1996. For a period, the A319 became the second most popular member of the A320 family, ahead of the A321-200. However, in the latter stages of the A320ceo family production, the focus from airlines began to shift toward the A321-200 with an emphasis on lower seat-mile costs, which was a result of its larger capacity.

The A319-100 is a direct competitor of the Boeing 737-700, a narrowbody member of the Boeing 737 Next Generation family, with both aircraft designed to carry around 120-140 passengers, depending on configuration. Both aircraft have had strong penetration of short-haul, domestic markets around the world. In Europe, carriers such as easyJet and Lufthansa have been large operators of the A319; in North America, airlines such as Delta Air Lines, American Airlines and United Airlines have all utilized the aircraft. Generally, airlines that have looked to take advantage of operational commonality, lower training transition times between other Airbus types and longer range have tended to favor the A319-100 over the 737-700.

In 2021, Airbus delivered the last of the A319s to Tibet Airlines, having built a total of 1,488 aircraft, including both the commercial aircraft and the corporate jet (ACJ319). In an effort to modernize, Airbus has shifted its focus to the production of the A320neo (New Engine Option) family. The A319neo model has not attracted the same level of popularity as the previous model, with the majority of the orders focused on the A320neo and A321neo models. It could be said that since the purchase by Airbus of the C Series program from Bombardier, now named the A220, that this aircraft — specifically the A220-300 — is now the natural replacement for the A319ceo. The A220 — in particular, the A220-300 — has had some success in the North American and European markets mainly, replacing older A319-100 models as seen with the likes of Air France.

The table below summarizes the design specifications of the A319-100, along with the other in-service members of the A320ceo family.

Current Market

Prior to the pandemic, the A319-100 aircraft was fully in phase-out cycle of the program’s production life, in favor of the incoming A320neo family replacements. However, with narrowbody production remaining significantly impaired post-pandemic, airlines have looked at the next three to five years in terms of their growth plans and guaranteeing capacity through this period and have come to realize that the delays in production and insufficient availability of new-generation aircraft will likely continue for years to come. As a consequence, aircraft such as the A319-100 are benefiting from an extended service life. We expect to see more of this current trend of extensions over the next two to three years at a minimum.

With the increased demand for extensions of the A319-100, feedback from the market has shown Lease Rates for these aircraft, which, depending on vintage and specification, have strengthened significantly over the last year. It’s unlikely that they will climb much higher than the current position, but without replacements, they are expected to maintain a strong Market Value to Base Value ratio.

Transaction activity for this aircraft remains strong, with the A319-100 still featuring prominently in lessor portfolio RFPs and even part-out specialists leasing on short-term stub-leases to cover capacity gaps. The frequency of transactions and strength of liquidity of this aircraft type is expected to continue over the short-to-medium term.
The spare parts, airframes and engine values associated with the A319-100 have increased significantly in recent times. Part-out companies that are looking to secure inventory over the next couple of years have noticed the extension trend and are willing to pay significant premiums on parts to capitalize on the expected supply shortage. In some cases, they are even willing to take stub-lease risk on to ensure inventory is covered.

The long-term market prospects of this aircraft will largely depend on Airbus’s ability to successfully supply new-generation aircraft to replace it, either through operators up-gauging to the A320neo or switching to the A220-100/300, with the order book remaining low for the A319neo. The rate at which new deliveries occur will largely determine the eventual rate of softening of Market Values and Lease Rates. The current premiums being achieved on part-out values, Market Values and Lease Rates are likely to reach a ceiling over the next several years and eventually soften later into the decade and into the 2030s. However, expect the A319-100 to maintain a strong portion of the narrowbody fleet going forward.

For example, both United Airlines and American Airlines are investing in retrofit programs of the cabins with new buyer-furnished equipment in a bid to attract premium passengers. While newer models like the A220- 100/300 and A320neo will dominate future orders, the A319-100’s enduring presence, supported by strategic retrofitting and investment programs, ensures it remains a key player in the narrowbody fleet.

All ISTAT ONLINE OFFERINGS