Nine years after production ended for Boeing Co.’s 717 jetliner, the former sales dud is one of the most sought-after aircraft in the world.
Boeing built just 155 of the 100-seaters, and most are near the age when airlines start thinking about a trade-in. But valuations and lease rates are soaring thanks to a mix of cheap fuel, Boeing’s $1.5 billion bet on ensuring the model stays in service and Delta Air Lines Inc.’s decision to use the plane as a replacement for its smallest regional jets.
Delta, Hawaiian Holdings Inc., Spain’s Volotea and Australia’s Qantas Airways are all ready to pounce if a used 717 comes onto a market that now has none to buy or rent. Their only current prospect: a plane parked in Turkmenistan, according to FlightGlobal’s Ascend database.
“Everyone’s in them for the long haul,” said Daniel Pietrzak, Delta’s managing director for fleet transactions. “They look brand new. They’re great.”
The 717’s surprise resurgence bucks the usual trajectory of orphan aircraft, which rarely gain popularity once assembly lines shut down. Instead, global demand has outstripped supply since Delta started assembling a large and growing fleet in 2012, taking advantage of favorable rental terms and a drop in jet-kerosene prices that makes older planes attractive.
“They’re kind of the market-maker,” said Robert Agnew, president and chief executive officer of aviation consultant Morten Beyer Agnew Inc. “If Delta weren’t there, the airplane might be struggling.”
Values have risen more than 17 percent this year, to range from $7.5 million to $10.5 million, while
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