Aircraft prices 'bid-up' on more sale and leaseaback interest: Fly

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Aircraft prices continue to swell as investors chase sale and leaseback financings on quality narrowbody aircraft, according to Fly Leasing.

"This trend continues and it is causing values to be bid-up across the board," said Steve Zissis, director of the board of Fly Leasing, during a first quarter 2013 earnings call.

Zissis noted the "market is big enough" for other investments, and Fly is pursuing other opportunities such as acquiring aircraft on "naked lease". "We are not bashful...we will use our expertise to place the aircraft."

During a fourth quarter 2012 earnings call, Zissis said large budgets for acquisitions this year was prompting aircraft prices to increase as lessors target sale and leasebacks on newer narrowbody units.

He also noted increased aircraft prices, due to increased sale and leaseback appetite, was prompting an uptick in demand for used aircraft, "as liquidity leaks over to the better-valued assets."