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MINNEAPOLIS -July xx, 2003-The U.S. Bancorp Piper Jaffray Aircraft Finance Team recently published its third comprehensive report on Airline Enhanced Equipment Trust Certificates (EETC) titled, "Aircraft Finance - EETC Desk Reference 2003-1." The report contains comprehensive information for both investors and issuers on one of the nation's largest industries.
The 2003-1 EETC Desk Reference analyzes 65 public and private EETC transactions. The report features a number of tools to quickly depict the strongest structures from each issuer as well as across the sector. In addition, the desk reference includes an assessment of current and future aircraft values, which is coupled with the team's unique measure of risk, collateral coverage and current and long-term coverage relative value opportunities.
"Oversupply and weak demand characterize the current aircraft market driven by lower passenger traffic," said Brian Erickson, senior fixed income research analyst at U.S. Bancorp Piper Jaffray. "In 2001 and 2002 the U.S. economic slowdown and terrorist concerns depressed traffic. At the beginning of 2003, the imminent war in Iraq compounded traffic declines, which were further exacerbated by the onset of hostilities. As a result, both Atlantic and U.S. domestic traffic declined and thus did the need for new aircraft."
Erickson goes on to say that future traffic growth driven by an economic recovery or diminshed impact of SARS will ultimately fill up the new aircraft manufacturing capacity and bolster demand for available aircraft. "Even with the weakened demand for aircraft, the secondary market for aircraft continues to steam ahead, driven by reduced prices," he said.
The report sites aircraft availability and transactions over the past 12 years for both new and old aircraft. "Although turnover is down from 2000, we view the level of turnover as relatively healthy given the perception of mounting supply and lack of buyers," said Erickson.
This edition of the EETC desk reference, includes extensive analysis on the measure of risk and highlights investing opportunities in EETCs. (Add something here about risk analysis or current investing opportunities in EETCs?)
For more information regarding this report please contact Brian Erickson at U.S. Bancorp Piper Jaffray at berickson@pjc.com.

U.S. Bancorp Piper Jaffray, a subsidiary of the consolidated group of U.S. Bancorp, is a focused securities firm comprised of two revenue-generating segments -- Capital Markets and Private Client Services. Clients of both segments are supported by Investment Research, an independent group reporting to the CEO. The firm provides a full range of investment products and services to individuals, institutions and businesses. The firm has over 124 offices in 25 states across the country. U.S. Bancorp offers a comprehensive range of financial solutions through U.S. Bank, U.S. Bancorp Asset Management, U.S. Bancorp Investments and U.S. Bancorp Piper Jaffray. For more information on U.S. Bancorp Piper Jaffray, visit www.piperjaffray.com.