VIRTUAL ROUNDTABLE
Talking engine MRO, parts and digitalisation
GA Telesis CEO Abdol Moabery, MTU Maintenance Lease Services’ Martin Friis-Petersen and Willis Lease Finance’s
Dan Coulcher share their thoughts on the current and future state of the engine MRO market.
Airline Economics: In terms of engine
maintenance repair and overhaul (MRO),
are you seeing an uptick in demand for
certain types of repairs or are certain
engines coming in for MRO checks
more than others? And is capacity being
managed effectively?
Moabery: We have been waiting for a
maintenance bow wave since 2008, but until
recently, it never came. What should have
come in that 2008/2009 timeframe was
deferred greatly by the Great Recession. We
seem to be enjoying that bow wave today.
From what GA Telesis can tell, all shops,
including our GA Telesis Engines Services
MRO have no available slots through the end
of this year and perhaps half of next year.
In our case we have instituted an action
plan to increase our capacity by 25% in the
very short term. No easy task and that too
has its challenges. However, we do not see
a slowdown in the coming years and are
confident in our slot growth strategy.
AE: In terms of parts and components, are
you seeing any problems in oversupply
or under supply of certain parts and
components? Which types stand out?
Moabery: Currently, GA Telesis and its
GATES MRO unit are seeing a shortage in
the USM (used serviceable material) that the
market typically provides. This is a result of
the fewer number of engines being parted
out because aircraft that might have normally
been parted out are continuing to fly. GA
Telesis sees the part-out market getting back
on track with normal supply levels in 2019
and 2020.
AE: How is big data transforming the
engine market?
Moabery: I do not see big data impacting the
current technology engine market greatly.
There are already so very robust maintenance
and material planning data sets available as
all of the engines in this sub-set are older than
20 years and all have significant amounts of
data to help operators a, lessors and MRO
50 Airline Economics: Aero Engine Yearbook 2018
plan. However, big data will have a material
impact on the market going forward. The use
of data and the IOT (internet of things) will
collectively provide major advancements
in terms engine operation, spares and
maintenance planning; which will ultimately
lead to better cost management.
Friis-Petersen: Unsurprisingly, we believe
the next technology advancements in the
MRO business will be driven by digitalisation
and this is where the greatest development
will take place across the industry. At MTU,
we are working towards full data integration
throughout the entire product lifecycle and
as a result, improving the predictability of
engines. We expect this to benefit both the
MRO and OEM aspects of MTU’s business.
Data availability and automated analysis will
be key here.
Recently, we started integrating MTU’s
MRO data – such as engine monitoring data
and inspection data – within a common
MTU group-wide platform. This can be used
on either side of MTU’s business units.
The OEM side will be able to use data to
further improve our engine design. And on
the independent MRO side, we can use data
to further improve maintenance costs for
our customers.
From an MTU Maintenance perspective,
our largest project here is our engine trend
monitoring (ETM) system, based on engine
data from flight operations and shop visit
data. We introduced ETM over fifteen years
ago and continually develop and optimize the
system. As an independent service, MTU’s
ETM system is not based on a single engine
system and we can monitor a customer’s
GE90 and V2500 fleet with the same tool,
for instance. This is particularly helpful
for engineers and technical managers and
unusual in the industry.
From MTU’s perspective big data
and data analytics congesting the right
data will enable us to offer new business
value propositions to our customer base
(e.g. engine fleet support management)
redefining our role while delivering
significant improvements within our
existing business.
Coulcher: With over 800 owned and
managed engines [big data] is an area we
continue to invest in for our own benefit as
well as our customers. The knowledge and
expertise built up helps us manage our and
our customers fleets more efficiently.
AE: What impact is the quality and quantity
of predictive maintenance data having on
engine MRO?
Friis-Petersen: Tangible benefits for
customers who have been using our ETM
system for a number of engine runs are as
follows: there are patterns unique to them
that help us better plan shop visits, plan
logistics and manage their fleets. In turn,
creating savings and shorter turn times. In
particular, predictions of remaining on-wing
time augment fleet management abilities, as,
for instance, purchasing can start ordering
new parts or searching for used parts months
before the actual removal, for instance LLP
sets if they need exchanging. This always
works better the more access one has to
fleet performance data and history. We
combine ETM with our engineering and
workscope expertise to optimize solutions
for our customers. Essentially, it is always a
holistic and highly-customized process.
Of course these benefits also apply to any
lessors using the system: the more planning
that goes into overall fleet management,
transitions and MRO, the more efficient the
process becomes. Predictive maintenance
data will be able to support engine pool and
fleet management.
Moabery: Ultimately this will become the key
to the kingdom. This is an incredibly valuable
to the OEMs and we inevitably flow down to
the airline operator in the form better cost
controls and management. However, we
are heading towards a scenario where there
may be no aftermarket in 15 years for these
engines and if that is the case, the question
is whether the airlines can exert enough
pressure, as it relates to new technology
engines and the single engine type platform
model in the future to ensure that they can
benefit from predictive data tools versus.
www.airlineeconomics.co
 your true supply chain partner
ITS is an experienced dynamic leader in end-of-life
aircraft & engine acquisitions and fleet management solutions.
With sales & leasing programs tailored to your needs,
we support you with a one-on-one personal touch from our
worldwide locations.

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GECAS

Passion for Power T

GECAS provides an update on the rapidly evolving
engine leasing business.
he engine leasing market is
busier than ever, with more
participants, more products
and more funding than
at any point in its history.
Renting spare engines instead of owning
them has become increasingly popular
among cost-conscious airlines, while
investors are drawn to a big-ticket asset
class that offers predictable returns and
better value retention than aircraft.
Further impetus for leasing is provided
by more expensive new equipment. The
price tag for narrow body engines can
run about 50% higher than for one of
the engines it replaces. For example,
to replace a ten-year-old CFM56-7B
(bought in 2008 for roughly $9MM)
with a 2018 LEAP-1B27 will cost nearly
$14MM. “So, the capital cost an airline is
required to put up for spares is getting a
lot more intrusive,” says John Del Mastro,
Managing Director, Risk & Portfolio
Management Engine Leasing for GECAS.
The leading players in engine leasing
remain the OEM-affiliated lessors – with
early speculative investments to support
product issues at entry into service. GE
Engine Leasing, a business unit of aircraft
lessor GECAS, has its 20th anniversary
in 2018, and its growth has marched in
step with GE’s growth in the aviation
sector. Since 2002, GE Engine Leasing’s
portfolio has roughly tripled to about 750
engines, including those owned by joint
venture Shannon Engine Services.
Despite its OEM connections, GE
Engine Leasing offers leasing and
financing for all commercial engine
manufacturers. Narrowbody and new-
generation types are the majority of the
portfolio, although it is also the market
leader for widebody engine leases.
“Currently all engine types are in high
demand,” says Roger Welaratne, GECAS
SVP & Manager, Engine Leasing.
Beneath the OEM-affiliated lessors
sit established independents such as
Willis Lease Finance and Engine Lease
Finance. In addition, several engine
MRO providers have branched into
engine leasing to augment fleet support
contracts, while part-out companies are
providing short-term rentals to operators
of older equipment. Some of the new
entrants are supported by Japanese
investors seeking out returns in the
current low-interest-rate environment.

52 Airline Economics: Aero Engine Yearbook 2018 www.airlineeconomics.co


“New entrants provide more funding
options and increase the liquidity in the
spare engine market, which are good
things,” says Tom Slattery, GECAS SVP
& Manager, Engines, adding: “It also
provides more options to airlines and
drives more creative solutions.”
Slattery acknowledges that more
competition puts pressure on lease
rates but notes that this is just one of
several pricing inputs. More important,
he says, are expectations about dollar
interest rates.
Another factor is spare engine demand.
Airlines need spares to cover equipment
undergoing scheduled or emergency
maintenance, and often prefer to lease
rather than own to incur lower upfront
and inventory costs. Alternatively, airlines
might want to access liquidity via sale and
leasebacks. Another advantage of leasing
is that it transfers residual value risk to
the lessor.
Traditionally, airlines have required
one spare for every 10 operational
engines, although this ratio is widening
as equipment becomes more reliable,
thus dampening demand somewhat.
That might seem counter-intuitive given
recent high-profile problems for the
Pratt & Whitney PW1100G and Rolls-
Royce Trent 1000, but such issues will
eventually be resolved.
“The interim increased demand for
relevant spare engines will, of course,
normalize over time,” says Welaratne.
Moving in the other direction is
demand for CFM56-5B and -7B spares for
Airbus A320 and Boeing 737NG aircraft.
These engines proved much more reliable
than originally forecast, meaning that
an expected wave of maintenance – and
hence demand for spares – arrived later
than expected.
In fact, maintenance demand for the
CFM56-5/7 is only forecast to peak in the
mid-2020s, at which point shop visit rates
will be roughly a third higher than today.
Consultancy IBA has questioned whether
engine lessors will have the capacity to
meet this spike in demand, and while
GE Engine Leasing has deeper CFM
capacity than any other lessor, Welaratne
acknowledges the need to plan ahead.
“If a spare engine is not available at the
time of the need then it is very difficult to
source one in the short term, adding to
the pricing equation,” he says.
www.airlineeconomics.co
GECAS
“This is why it is essential to have a
good handle of the near-term forecasted
spare engine needs.”
SOURCING ENGINES
Although oil prices have risen steadily
since mid-2017, in the last five years the
average price per barrel was roughly
half the level of the previous five. This
means that current-generation aircraft
and engines are staying in service longer
than expected, as airlines put off the
introduction of newer, more fuel-efficient
equipment.
“It seems that we are in a ‘middle of
the road’ type environment where oil
prices are moderate, which is keeping
new technology and current technology
in balance,” observes Slattery.
Fewer aircraft retirements make it
more difficult for some lessors to acquire
additional stock. At the same time,
demand for spares continues to rise as
airlines keep equipment in service longer.
This is true not just for narrowbody types
but also certain widebodies. Welaratne
describes high demand for CF6-
80C2BFadec, CF6-80E and PW4168
engines “due to the redeployment of 767
and A330s”.
Another buyer for popular current-
generation wide- and narrowbody
engines is the burgeoning used
serviceable material (USM) market, from
which teardown companies seek engines
to strip out valuable life-limited parts.
While USM demand might be regarded
as an additional drain on scarce supply,
Welaratne sees such businesses as a
buffer, not a threat,
“Overall, end-of-life part-out activity
does not have a negative impact on leasing
as it is the fastest way of adjusting supply
and demand for the relevant engine type
by absorbing any excess,” he says.
A growing USM business also benefits
engine investors by providing another
layer of residual value protection.
New-generation equipment such
as the CFM LEAP, PW1000 or Trent
XWB must be acquired directly from
manufacturers or through sale-leaseback
deals with airlines. This second avenue,
however, may narrow for certain new
engine types if airlines restrict their
spares orders due to perceptions about
increasing reliability.
Another complication is the broader
Airline Economics: Aero Engine Yearbook 2018 53
GECAS
attachment of OEM maintenance
contracts to engine sales. Although
this has long been a feature of the
widebody market, both CFM and Pratt
& Whitney are winning more full-
service support contracts for their new
narrowbody engines.
“While the presence of OEM
contracts adds complexity to leases, they
are manageable and structured into
applicable lessor contracts,” says Slattery.
INVESTOR CONSIDERATIONS
Although the annual value of new spare
engine deliveries is only about 2% that of
new aircraft, engines are winning more
attention from big institutional investors.
As highly mobile assets with predictable
returns and strong residual values across
most vintages except the oldest types, this
is unsurprising. And, despite more players
entering engine leasing, the business is
not nearly so crowded as aircraft leasing,
where a wave of new entrants, particularly
from China, have depressed lease rates in
their rush to build portfolios and gain
critical mass.
Nonetheless, engine leasing is a
tricky business to thrive in; one that is
arguably more challenging than aircraft
leasing because of the technical expertise
required. The cost of maintenance for
54 Airline Economics: Aero Engine Yearbook 2018
engines is a much higher proportion
of asset value than it is for aircraft,
and detailed knowledge is required of
different engine builds and marks, and of
the quality of components inside. Lessors
must also keep on top of documentation,
since even a seemingly tip-top engine
can forfeit almost all its value without an
adequate engine history and traceability
for its parts.
Investors armed with suitable
technical expertise must also adapt to an
industry in which certain basic dynamics
have altered. Previously, it was typical for
a new spare engine to be leased initially
for about seven years, after which the
lease would be extended or a new,
secondary lease would be signed for the
next three to five years. In recent years,
however, the number of long secondary
leases has steadily declined. In part this
is because airlines have improved their
cost and inventory management systems,
while also becoming more willing to take
risks with spares due to the reliability of
the most popular engines.
Such risk-taking is exemplified by
the explosive growth in the short-term
rental market, which many airlines
now tap as an alternative to multi-year
secondary leases.
“What makes the engine leasing
market more dynamic is the short-term
rental market, where having the right
mix of engines available at the right time
makes the engine leasing market very
lucrative,” says Del Mastro.
That said, new lessors should also
be aware that cost-conscious airlines
increasingly seek to transfer certain
costs of lease transfers – such as test
cell runs, legal fees and shipping –
back to the owner. On the flipside, the
growing popularity of engine leasing has
contributed to a relatively streamlined
and user-friendly lease-return process, as
well as an array of consultancies that can
assist with returns.
Welaratne adds that it is relatively
uncommon for engines to fail to meet
lease return conditions, and that
diligent contract drafting can overcome
most problems.
“The common issues are around
missing parts, parts that the airline has
often retained to fit on the replacing
engine, and these are mitigated by lease
documentation detailing the QEC [quick
engine change] parts,” he says.
A final consideration for investors is
competition. As stated, engine leasing has
fewer players than aircraft leasing, but
certain areas of the market have become
much more crowded, notably those for
short-term and green-time leases for
mid-life and older equipment. The big
question for the future is whether China
follows its big move into aircraft leasing
with the establishment of dedicated
engine asset managers, or the purchase of
foreign companies.
Given aviation’s growth forecasts
for China and Asia-Pacific, some
view such a move as inevitable,
notwithstanding the extra technical
challenges of engine leasing. Welaratne
sees Chinese investors and airlines
pushing for domestic capabilities that
might encompass Chinese-language
engine and contract documentation, as
well as RMB-denominated rentals. He
cautions, though, that residual values
“are completely driven by liquidity of the
asset” in the international market.
“Engine leasing without understanding
and managing for the end game is not
going to be successful,” he says. For
airlines, however, the future of engine
leasing looks rosy, with more choice and
better pricing than ever before.
www.airlineeconomics.co
 Above & Beyond
With 50 years’ experience in aviation finance,
GECAS provides clients in 75 countries with
deep domain expertise and the industry’s
broadest range of products and services.

Download the GECAS Customer App

For Apple For Android

gecas.com
FUTURE PROPULSION

Game on for future

aero engines
The race is on for manufacturers to develop a
more efficient engine that will reduce the aviation
industry’s reliance on oil, reduce emissions
and noise. Steve Johnson explores the options
currently in development as well as those at the
concept stage.

T
he aviation industry’s
mission to achieve global
50% reduction in CO2 levels
is becoming an unstoppable
force for manufacturers,
suppliers and their respective partners.
There’s a long way to go to mature the
multiple technologies being pursued –
that much is clear – but ground-breaking
progress is being made on a number
of fronts. Ultimately, it won’t just be a
matter of technical solutions that will
deliver the CO2 reductions; commercial
and competitive positions will also
shape the world of “eco” flying in the
decades to come.
The inexorable growth in air travel
means that aviation’s contribution to
the environmental problem is becoming
more acute by the day. Adding to the
pressures for aviation, to be as “eco” as

56 Airline Economics: Aero Engine Yearbook 2018 www.airlineeconomics.co


possible, as soon as possible. The task
is enormous, particularly for engine
manufacturers. But seemingly, it is
also do-able.
In writing now about future engine
technologies, our own challenge is much
more straightforward.
www.airlineeconomics.co
First of all, there are some important
developments that essentially fall into
the “extending existing and upcoming
technologies” category – these focus on
Rolls-Royce and Airbus in particular.
Secondly comes the question of “where
decarbonisation will really kick in”;
FUTURE PROPULSION
specifically the use of alternative fuels and
electrical power, which are now firmly on
the radar. And finally, throwing a bit of
caution to the wind of powered passenger
flying; this article considers what might
be technically possible and commercially
viable in a few decades’ time.
Airline Economics: Aero Engine Yearbook 2018 57
FUTURE PROPULSION

STATE OF PLAY
Although broadly, entry into service
(EIS) for the latest generation of aircraft
and engines has not been the smoothest,
Pratt &Whitney GTF and CFMi’s LEAP
engines represent significant progress
in fuel burn reduction and increased
efficiency. The combined effects of their
arrival, particularly as legacy aircraft are
retired, is unquestionably a move in the
right direction. It may be early days, but
every little helps.
Clearly, gas turbines are set to be
in service for a few decades yet and
with developments ongoing. The
next generation, represented by the
forthcoming Rolls-Royce UltraFan
engine programme, which brings
together a number of significant
engineering initiatives, is moving ahead
very positively. The geared UltraFan,
a scalable design for narrow and wide-
bodied aircraft will be introduced in the
second half of the next decade. Featuring
new engine core architecture and the
company’s new ALECsys (Advanced
Low Emissions Combustion system),
UltraFan has carbon titanium blades
and composite casing to reduce weight.
It is designed to offer a significant 25%
fuel efficiency improvement over the first
generation Rolls-Royce Trent engines.
Last September, the power gearbox that
will enable UltraFan to work efficiently
at high by-pass ratios reached 70,000hp
– understood to be an aviation record.
Advance3, the company’s test engine
programme, which uses the same
core architecture as UltraFan, first
ran last November. Advance 3, which
also incorporates ALECsys, constantly
monitors environmental conditions UltraFan, says: “Airbus expertise will BLADE demonstrator aircraft. BLADE
and thrust requirements. Altering the strengthen our ability to deliver this (Breakthrough Laminar Aircraft
mixture of fuel and air delivered to important development programme. Demonstrator in Europe) is tasked
injection points to minimise emissions, We are also grateful to Clean Sky2 for with assessing laminar flow wing
ALECsys tests so far reduced NOx in the recognising UltraFan’s environmental technology on a large aircraft. It aims
cruise by 50%. benefits.” Axel Flaig, Airbus, head of to reduce drag by 10% and 5% less in
To ensure a solid foundation for research and technology programme, CO2 emissions. The test aircraft is the
UltraFan ground and flight testing, describes this development with Rolls- world’s first to combine a transonic
including fuel efficiency targets, Rolls- Royce as a “key project for Airbus laminar wing profile with a true internal
Royce and Airbus recently signed for the next generation of integrated primary structure.
a collaboration agreement, which propulsion systems”. Although engine power developments
will be co-funded by the European Engine-enteric efficiencies are, remain at the centre of mission CO2
Clean Sky2 programme. Airbus will for the most part, at the heart of reduction, it is perhaps appropriate
provide nacelle and engine/aircraft reducing emissions, but aerodynamic to briefly bring a real aircraft into the
integration architecture and technology improvements can also contribute. At equation. The Boeing NMA (new mid-
enablers. Andy Geer, Rolls-Royce chief the Berlin Air Show in April, Airbus market aircraft) being the obvious one
engineer and head of programme – showcased its A340-300 Flight Lab to mention. Likely as not, this will be

58 Airline Economics: Aero Engine Yearbook 2018 www.airlineeconomics.co


the 797. Although the actual size, range
and configuration debate is still running,
it’s a 757/767 replacement with around
220-270 seats.
With EIS in or around 2025, the
competition gloves are reportedly off for
the engine manufacturers to power the
aircraft. Boeing has said that it is looking
for a 25% fuel saving compared with the
757. For an observational position, if
engine performance is broadly similar,
with the desired savings, the 797’s
power choice may well come down to a
judgement call of how the recent new
engine experiences are viewed. Might
the above Airbus and Rolls-Royce co-
operation be pivotal?
www.airlineeconomics.co
ALTERNATIVE FUELS, ELECTRIC AND
HYBRID
Achieving the goal of CO2 reductions,
decarbonisation et al, is about the
changing world of aircraft fuel and
power. By all accounts requiring more
technical and development muscle than
most other milestones in recent aviation
history. If nothing else, whether talking
bio/sustainable fuels, hybrid solutions
or electrical power, addressing the
challenge involves substantial cost and
investment considerations. It is also
clear that going alone is probably not
going to work; partnerships hold the key
to driving things forward.
The Energy Transitions Commission
FUTURE PROPULSION
“improvements in
engine and airframe
efficiency can
significantl reduce the
rate of growth of CO2,
but it will not be possible
to keep emissions
flat let alone achieve
reductions, without a
shift to low-carbon fuels
or electric engines.”
(ETC), a coalition of 30 leading
executives from across the energy
landscape, has recently published a
consultation paper for aviation. As one
of the sectors which are likely to be the
hardest to de-carbonise, the paper lays
out pathways for aviation to achieve its
objectives. R&D, industry and business
together with public policy actions are
introduced in the paper and following
a feedback process will result in an
integrated industry and heavy transport
report to be published in November.
In headline terms, the consultation
paper says that improvements in engine
and airframe efficiency can significantly
reduce the rate of growth of CO2, but it
will not be possible to keep emissions
flat, let alone achieve reductions,
without a shift to low-carbon fuels
or electric engines. Electric aircraft,
it says, could play a role over short
distances, but without a dramatic and
unlikely improvement in battery energy
density, these technologies will not be
able to power long-haul aviation. Zero-
carbon aviation means a combination of
biofuels or synthetic fuels. And although
that presents opportunities for the
industry, it also means substantial R&D
pressures; some manufacturers having
to commit resources, in one way or
other, to dual-or even multiple-solution
strategies. As well as keep things going
with established technologies.
Looking at the biofuel position,
Airbus is committed to decarbonisation
and supporting international aviation’s
objectives for CO2 reduction. The
Airline Economics: Aero Engine Yearbook 2018 59
FUTURE PROPULSION
company is taking a leading position
in the adoption of sustainable aviation
fuels (SAF). One particular initiative,
partnering with Total, is delivering
new aircraft – ex-Toulouse, with a
10% blend of sustainable fuel (SAF)
whilst maintaining JET-A1 standard.
The company is looking to extend this
offer to its operations in Alabama and
Hamburg when fuel production partners
can be established.
Frederic Eychenne, sustainable
aviation engagement programme
manager, says: “Airbus is driving the use
of sustainable fuels at a strategic level,
including participation in a number
of research projects. We are engaging
with the aviation community for the
framework to push for SAF scale-up and
with other OEMS for fuel certification.
Another initiative for Airbus is to
develop our internal knowledge and
intelligence of sustainable fuels, trends
and technologies.”
A number of airlines have been
pursuing the use of bio fuel since 2011,
when Lufthansa became the first
airline worldwide to test alternative
fuel in scheduled flight operations for
six months on the Frankfurt-Hamburg
route with an Airbus A321. The testing
involved engine condition monitoring,
emission measurement and research
into biomass production processes and
60 Airline Economics: Aero Engine Yearbook 2018
availability and concluded that biofuel
can be used without any problems in
flight operations.
If the use of sustainable fuels can
scale up to deliver its part of the
decarbonisation objective for long
haul, then we are left with what’s
happening in the use of electrical power
for shorter routes.
In the small, but perfectly formed
category, the ETC consultation paper
sets out the main contenders in the
electric power space:
• Financed by Airbus, Vahana, an
electric power aircraft designed for
passengers or small cargo within the
confines of a city, first flew (for 53
seconds) in 2018
• Lilium, an all-electric taxi jet
service, tested its first flight in 2017,
is planning for first manned flight in
2019 and full commercial roll-out in
2025, primarily for intra-city travel
• Zunum Aero, with investment from
Boeing and JetBlue Technology
Ventures, are planning to deliver
a 12-passenger electric aircraft to
travel 700 miles imminently.
• Eviation Aircraft, an Israeli start-
up, is similarly focused on the short-
range market and working to deliver
a 9-passenger plane operating in the
100-600-miles range.
• First flight from Oslo airport of
the Avinor AS electric two seater
aircraft manufactured by Slovenian
manufacturer Pipestrel – June 2018
One of the most significant electrically
powered aircraft projects to date is
Wright Electrics’ development for an
all-electric airliner being produced
in collaboration with easyJet. This
will, it is reported, have the capability
to fly easyJet passengers across the
operator’s UK and European networks
within a decade.
When it comes to an experience
and know-how partnership that has
what it takes for ground-breaking
programmes; a combo of Airbus, Rolls-
Royce and Siemens is likely to tick a lot
of decarbonisation boxes. The partners’
E-Fan X hybrid flight demonstrator
programme, announced in November
2017, is due to fly in 2020. Using a BAe
146 flying test bed, with one of its four
engines replaced by a two megawatt
electric motor, there will be provision
to replace a second gas turbine once
the system has matured. The E-Fan
X demonstrator will explore the
challenges of high-power propulsion
systems, such as thermal effects, electric
thrust management, altitude and
dynamic effects on electric systems and
electromagnetic compatibility issues.
www.airlineeconomics.co

“Building up electric
propulsion for aircraft,
we are creating new
perspectives for our
company and our
customers. With the
E-Fan X partnership,
we now take the next
step to demonstrate the
technology in the air”
The objective is to push and mature
the technology, performance, safety
and reliability, enabling quick progress
on the hybrid electric technology. The
programme also aims to establish the
requirements for future certification
of electrically powered aircraft, while
training a new generation of designers
and engineers to bring hybrid-
electric commercial aircraft one step
closer to reality.
Paul Stein, Rolls-Royce, Chief
Technology Officer, says: “The E-Fan
www.airlineeconomics.co
X enables us to build on our wealth
of electrical expertise to revolutionise
flight; the third generation of aviation.
Rolls-Royce is creating the world’s most
powerful flying generator.”
“Siemens has been driving innovation
in core technology fields at full speed,”
says Roland Busch, chief technology
officer. “Building up electric propulsion
for aircraft, we are creating new
perspectives for our company and
our customers. With the E-Fan X
partnership, we now take the next
step to demonstrate the technology
in the air.”
Rolls-Royce recently made public
a patent for a combined AC and DC
turboelectric distributed propulsion
system that it says could revolutionise
commercial aviation. According to
the company, the system uses an AC
generator to produce a current delivered
to two sets of ‘propulsors’. Rob Watson,
director of Rolls-Royce electrical says,
“Electrification is driving change across
our markets.”
It seems almost inevitable that bio
sustainable fuels will have their day in
the mainstream. But judging from the
momentum building for electrically
powered aircraft, things could get very
interesting in the next couple of decades.
Might bio fuels have a relatively short
lifespan for aviation?
FUTURE PROPULSION
WHAT MIGHT BE POSSIBLE – FASTER?
HIGHER?
Fast forward, literally, leaving electrically
powered aircraft behind, then the
question is about if, when and how
there will be aircraft that will eclipse,
shall we say, Concorde’s capabilities?
Notwithstanding that Concorde will
remain forever peerless in beauty and
flying qualities. Not surprisingly, Rolls-
Royce, the only engine manufacturer
that has supersonic airliner experience
says that it is not ruling anything out.
The company knows that supersonic
brings many demanding challenges
– noise, reliability, the use of military
technology among them. But Rolls-
Royce is also optimistic that these
can be overcome.
So to the US where, it is quite possible,
a hypersonic (Mach 5+) aircraft will
be developed. In fact, Boeing recently
unveiled such a concept – a passenger-
carrying hypersonic vehicle concept
that could have both commercial and
military applications. Boeing says that
this is just one of several hypersonic
vehicle concepts spanning a wide range
of potential applications that they
are studying. Kevin Bowcutt, senior
technical fellow and chief scientist
of hypersonics at Boeing says: “It is
possible we could see something like
our passenger-carrying concept flying in
Airline Economics: Aero Engine Yearbook 2018 61
FUTURE PROPULSION
20-30 years; most likely, hypersonic
flight will be used initially for national
security applications. Our advanced
concepts, in conjunction with developing
enabling technology, position us for
when customers and markets are ready
to reap the benefits of hypersonic flight.
By looking decades ahead at what could
be possible, we are smarter about what
innovations and technologies we should
be exploring now. Boeing’s expertise in
designing, developing and testing game-
changing concepts makes us the ideal
company to lead the charge for faster,
more-efficient, customer-centric ways to
connect the world.”
But if Concorde’s challenges were
substantial, hypersonic travel will need
to find solutions for a whole new set
of design technical and commercial
hurdles. If taking things to ‘a whole
new level’ needed to be redefined, then
this is surely it. Boeing says that, the
highly integrated nature of air-breathing
hypersonic vehicles makes them very
difficult to design successfully. Extreme
heating from air friction requires
hypersonic vehicles be made of very high-
temperature materials and structures
that are both light and durable. Kevin
Bowcutt says: “Integrating the engines
and airframe in a manner that achieves
high performance across a very large
operating envelope exacerbates greatly
the design challenge.”
In addition to having engines capable
of delivering the required performance,
making hypersonic flight a reality will
also necessitate lighter, more durable
high-temperature materials. Sensing
and analysis technologies for system
62 Airline Economics: Aero Engine Yearbook 2018
health monitoring and intervention to
achieve robust safety in a harsh thermal
environment will be essential. And
at such speeds, the need to be able to
actively control engine performance
and maintain flight stability will not be
an easy task.
Say all the technical hurdles, ‘ifs and
buts’, can be overcome, projects are
unlikely to take off unless commercial
viability can be reasonably assured. And
at this stage, it’s impossible to predict
how that will be packaged.
Kevin Bowcutt says: “Hypersonic
flight currently would be extremely
expensive, we’d have to reduce the
cost greatly for a first gen reusable
hypersonic aircraft for military or
commercial viability. Hypersonic flight
for commercial purposes in particular,
will only make sense when the distances
travelled warrant hypersonic speeds. The
vast majority of today’s passenger travel
happens at ranges where such speed
would be of limited practical value.
There are also airport infrastructure and
maintenance considerations.”
For UK-based Reaction Engines,
hypersonic is, quite simply, their raison
d’être. Established in 1989, the company’s
mission is to develop a new class of
hypersonic propulsion system. Reaction
Engines, backed by the UK government,
BAe Systems, Rolls-Royce and Boeing,
has already achieved breakthroughs
with heat exchangers that stop engine
components from overheating at high
flight speeds. Mark Thomas, CEO, says:
“Our new UK test site [see box] will
enable us to test critical sub-systems and
the SABRE engine core commencing in
Reaction Engines
The company has a clearly defined goal: To
design and develop the technologies needed for
a new class of hypersonic propulsion system. The
Synthetic Air-Breathing Rocket Engine (SABRE)
will enable aircraft to fly faster than Mach 5 in the
atmosphere. SABRE will also make it possible
for launch vehicles to be built that will radically
improve the affordability of space travel.
Mark Thomas CEO says: “Having achieved
a breakthrough with an ultra-lightweight heat
exchanger, we now plan to ground test a prototype
pre-cooler heat exchanger that will expose it to
hypersonic conditions – around 1,000oC. The
test programme, named HTX, is due to start later
this year. The testing which will be carried out by
our US subsidiary, in collaboration with the US
Defense Advanced Research Projects Agency
(DARPA), will be one of the keys to what will, in the
next years, result in ground-based demonstration
of a SABRE air-breathing core.”
The company’s new UK test site, located at
the Westcott Venture Park, near Aylesbury has
a strong history of rocket propulsion research C
stretching back to 1946. In 2016, the UK
M
Space Agency selected Westcott for the UK
National Space Propulsion Test Facility; it is Y
now home to a number of space and satellite
CM
technology companies.
It is clear that we are in a period of significant
MY
innovation and rapid development in the space CY
launch industry. There are some new commercial CMY
entrants, notably Virgin Galactic and Space-X
which are reducing the cost of space access. K
More commercial entrants are likely to follow.
Mark Thomas says: “We believe that there will be
a need for revolutionary leap forward in propulsion
that SABRE’s disruptive capability represents. The
key elements of SABRE have been validated and
following key development milestones, we will be
ready to demonstrate the engine’s potential.”
2020. These are crucial steps towards a
SABRE powered flight test vehicle – a
veritable Kitty Hawk moment for the
21st century”.
As we said at the outset, this is about
what could be possible. When you throw
some probability into the mix – as
simplistically, most aviation challenges
have been overcome over the years –
then hypersonic travel, in some form,
has a better than evens chance. How
things will evolve, and over what time
frame, is for another day. What we would
say, with a degree of cautious optimism,
is that those who can, where the sky
is most definitely not the limit, will
make it happen.
www.airlineeconomics.co
ENGINE VALUES
Power Dominance:
The growing
influence of engines
in aircraft values
David Griffin, Senior Analyst at Flight Ascend Consultancy
T
here is an old rule-of-
thumb in the commercial
aircraft industry, which
says that on delivery, a new
aircraft has 20% of its value
tied up in its engines and 80% in the rest
of the aircraft, while at end-of-life, the
ratio flips over and 80% of the value is in
the engines. However, we find that this
notion is highly outdated and no longer
applicable as spare engine values and
engine maintenance costs have grown at
rates significantly above CPI-U inflation.
It is worth mentioning before we start,
that engine values in this analysis refer to
spare engine values, which closely follow
list prices for in-production engines,
whereas installed engines (delivered on
a new aircraft), are generally discounted
by 40% or more during the aircraft
purchase negotiation process.
To begin with, we decided to look at
64 Airline Economics: Aero Engine Yearbook 2018
engine overhaul and LLP costs indexed
against the Consumer Price Index for
Urban Consumers (CPI-U) indexed
back to 2000 for the CFM56-7B26
and back to 1991 for the PW4056. The
chart below shows how over a 17-year
period, Shop Visit costs and Life Limited
Part costs have drastically exceeded
the CPI-U index.
While engine OEMs often sell
installed engines on a new aircraft at a
heavy discount, arguably making a loss in
many cases, they try to recuperate these
losses, along with the cost of developing
the engine, through long-term service
agreements and through sales of spare
parts and spare engines. By escalating
LLP part prices and other material costs
(which account for around 80% of a
typical engine Shop Visit invoice) they
attempt to reduce the time it takes to
make their money back. It does not help
their cause that engines are getting more
reliable and spending more hours on
wing, needing fewer shop visits – which
drives them to charge even more when
the engine finally does go into the shop.
We also decided to look at a widebody
engine and one from a previous
technological generation. The PW4056
follows a similar trend of escalation to
that of the CFM56-7B26 between the
years of 2001 and 2012 before rapidly
dropping off in 2013. This is due to an
increase in aircraft part-outs (in this
case the aircraft host platform – the
747 – produces four engines per aircraft
retired) and with additional engines
available, the market switched to burning
green time and not performing as many
overhauls. LLP prices also reduced due
to the growing supply of material made
available from engine teardowns.
As appraisers, we sometimes have a
www.airlineeconomics.co
 ENGINE VALUES

CFM56-7B26 ESCALATION IN PRICING

CFM56-7B26 Escalation in Pricing
CPI-U LLP SV

400

350

300

Index
250

200

150

100
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Year of Value

Sources: United States Federal Reserve Bank, CFM International, Flight Ascend Values
PW4056 ESCALATION IN PRICING

PW4056 Escalation in Pricing

CPI-U LLP SV

350

300

250
Index

200

150

100

Year of Value

Sources: United States Federal Reserve Bank, Pratt & Whitney, Flight Ascend Values

lag in receiving real-market shop-visit
and LLP cost data, so the curve’s drop-
off may have been a little smoother in
reality than the rapid drop off illustrated
above. Nevertheless, the obvious
takeaway is the same – once the engine
enters retirement phase, most of the
gains in maintenance cost and value
achieved during its production life
are wiped out.
This then leads us to ask – how
have spare engine values behaved as a
percentage of aircraft values over time?
We looked at the A320 and 737-800 first
and plotted this relationship and how it
evolved over time in the following chart.
As expected, the CMV curves oscillate
around the smoother BV curves due
to periods of market strength and
weakness. Spare engines are a “derived
demand” in that their greatest value
derives from the ability to power an
aircraft. Periods of strength or weakness
in the spare engine marketplace may not
necessarily align with the same market
conditions in the aircraft market; in
fact, the engine cycle tends to lag the
aircraft cycle by a number of months
or even years.
Between 2001 and 2018 the value of
the spare engines as a portion of overall
aircraft value increased from less than
30% to over 50% for the Boeing 737-
800 and 48% for the Airbus A320-200.
This rapid growth in engine share of
value raises some serious questions.
By using such a high rate of escalation,
engine OEMs can harm themselves in the
long run. A rising cost of maintenance
implies rising engine values as a portion
of the overall aircraft value. In turn, this
can lead to earlier aircraft retirement to
extract the value in the engines (lessors
in particular would be incentivised to do
this sooner). If part-outs start occurring
earlier they threaten OEM aftermarket
revenue, as supply of used serviceable
engines and parts grows. Secondly, if
the engine has a shorter life span, then
the OEM is drawing less revenue from
any long-term service agreements
they may have.
We also plotted the same chart for two
popular widebodies and a couple of their
engines: the 777-200ER (PW-powered)
and the A330-300 (RR-powered).
Bear in mind that the above chart
is only plotting engine values as a
percentage of a new aircraft (which
is why the curve ends in 2013 when
777-200-ER production stopped. In
comparison to narrowbody aircraft, the
value of spare engines starts at a lower
percentage of new aircraft value and
experiences what appears to be a lower
rate of escalation, but this may not

www.airlineeconomics.co Airline Economics: Aero Engine Yearbook 2018 65

ENGINE VALUES

necessarily be the case. The spike in the
percentage for the B777-200ER CMV in
2013 is due to end-of-line discounting
of the aircraft as it exits production,
VALUE OF SPARE ENGINES VERSUS HOST AIRCRAFT
Value of Spare Engines Versus Host Aircraft
55%

Value of Two Spare Engines Versus Host Aircraft

yet the associated engines do not 50%

experience such a drop in value in the

45%
same timeframe as the aircraft ending
production. What happened after 2013 40%

was that aircraft and engine values

35%
both started dropping (rather sharply,
especially for the 777), due to a relatively 30%

smaller fleet compared to narrowbodies,

25%
and the further dilution of this small 2001 2003 2005 2007 2009 2011 2013 2015 2017 2018
Year of Value
fleet into three engine suppliers.
Airbus A320-200 (CFM) CMV Airbus A320-200 (CFM) CBV
So where does the next generation of
Boeing 737-800 (CFM) CMV Boeing 737-800 (CFM) CBV
aircraft stand as they are being delivered
today? To complete the analysis we took
a look at their ratios (of engine value as
percentage of Full Life CMV on delivery. VALUE OF SPARE ENGINES VERSUS HOST AIRCRAFT
The above table makes it clear that Value of Spare Engines Versus Host Aircraft
the trend for both single- and twin-aisle 45%

aircraft continues with the A320neo and

Value of Two Spare Engines Versus Host Aircraft

40%
737MAX entering service with between
52% and 57% of their value contained in
35%
their engines. If this is the starting point
then how many years will it be before the 30%
engines dominate the value and part-out
seems lucrative? Projecting forward, a 25%
ten year old LEAP-powered A320neo
or 737-MAX8 has 90% of its value 20%

contained in its engines (PW powered

A320neo has 80%)! 15%
2001 2003 2005 2007 2009 2011 2013
Spare engines on widebodies remain Year of Value

at sub 40% of value, perhaps a sign that B777-200ER(PW) CMV B777-200ER(PW) CBV A330-300 (RR) CMV A330-300 (RR) CBV
aircraft manufacturers are still able to
command a significant premium for
long haul aircraft.
ENGINE VALUES AS A PERCENTAGE OF AIRCRAFT CMV
The other thing worth mentioning is
Aircraft Type Engine Type % of CMV % of CBV
that the crossover point where monthly
maintenance reserves collected exceed PW1127G 52% 50%
Airbus A320neo
the monthly rent of the aircraft is LEAP-1A26 57% 56%
occurring earlier. This is because the
Boeing 737-MAX8 LEAP-1B27 57% 56%
monthly rent decreases with aircraft
age as an aircraft ages while reserves Airbus A350-900 Trent XWB 84 39% 40%
increase at a rate much greater than
GEnx-1B74/75 PIP II 37% 37%
inflation. This may become an issue Boeing 787-9
for lessors who are trying to collect Trent 1000 74 TEN 37% 36%
maintenance reserves, particularly for
mid-life aircraft, as operators may baulk cannot continue to escalate at the rates and lessors may be drawn to part-out
at paying more for maintenance than we have seen, and logic would have it their aircraft at a younger age. This is
for the use of the aircraft – or they just that they should plateau or slow their particularly true for the A320neo and
look at their total monthly outgoings escalation rate sometime soon, although 737-MAX where the engines, in Full
and decide that higher maintenance exactly when this may happen, is Life condition, are predicted to be worth
reserves means they can afford less in anyone’s guess. With two spare engines around 90% of the total aircraft value
monthly rentals. already accounting for over 50% of at only ten years of age. We continue to
With new aircraft pricing increasing the value of their parent aircraft on observe engine escalation trends as the
at a rate below the CPI-U or in many delivery, continued escalation could lead market hopefully balances itself into a
cases remaining stagnant, engine costs to shorter economic lives, as operators more rational position.

66 Airline Economics: Aero Engine Yearbook 2018 www.airlineeconomics.co

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 Solving engine shortages
As a surge of shop visits for the V2500-A5, CFM56-7B and-5B is
forecast, will the engine lease market be able to meet demand for
spare engines and parts, asks IBA Engine Analyst, Georgy Cameron.

O
ver the last few years, a
number of narrowbody
engines, in particular
the CFM56-5B, CFM56-
7B and the V2500-A5,
have experienced an increased time
on-wing compared to that predicted by
the original equipment manufacturer
(OEM) and operators when these
engines entered into service. While this
was good news for the operators at the
time because it meant that they could
keep an engine on-wing longer before a
shop visit, this is now becoming an issue.
These engines are now starting to have
their first shop visits, which is increasing
demand for spare engines.
Over the coming 2019-2024 period,
IBA expects that the number of shop
visits for the CFM56-5B/-7B will
increase by around 25%-35%, with

68 Airline Economics: Aero Engine Yearbook 2018 www.airlineeconomics.co

 We also looked at the current engine fleet size and the number of spare engines required in circulation to
support the fleet. It assumes regional intervals predicated by the OEM and the minimum requirements of
spare engines across operating airlines. As expected, due to the number CFM56-5B/-7B and V2500s in those

SPARE ENGINES
regions, Asia-Pacific, Europe and North America have greatest requirement for spare engines.
We also looked at the current engine fleet size and the number of spare engines required in circulation to
Estimated Spare Engine Requirements For 2019-2022 Period
support the fleet. It assumes regional intervals predicated by the OEM and the minimum requirements of
1600
spare engines across operating airlines. As expected, due to the number CFM56-5B/-7B and V2500s in those
regions,
1400 Asia-Pacific, Europe and North America have greatest requirement for spare engines.
ESTIMATED SPARE ENGINE REQUIREMENTS FOR 2019-2022 PERIOD
1200
Estimated Spare Engine Requirements For 2019-2022 Period
1000
1600
800
1400
600
1200
400
1000
200
800
0
600 2018 2019 2020 2021 2022
400
CFM56-5B CFM56-7B V2500-A5
200
0
2018 2019 2020 2021 2022 IBA data
Source:
CFM56-5B CFM56-7B V2500-A5
IBA predicts that the current spare engine to total engine ratio for the CFM56-5B/-7B and the V2500-A5 is
approximately 7.5% for the CFM56 engines, and 8% for the V2500 engine. The estimated spare numbers are
shown in the chart below. However, this does not take into account engines whichSource:
may haveIBAalready
data retired
ESTIMATED TOTAL SPARE ENGINES FOR 2019-2022 PERIOD
or are unserviceable themselves, and therefore the actual number could be lower.
IBA predicts that the current spare engine to total engine ratio for the CFM56-5B/-7B and the V2500-A5 is
approximately 7.5% for the CFM56 engines,
Estimated andEngines
Total Spare 8% forFor
the2019-2022
V2500 engine.
Period The estimated spare numbers are
shown
1200
in the chart below. However, this does not take into account engines which may have already retired
or 1000
are unserviceable themselves, and therefore the actual number could be lower.
800
600 Estimated Total Spare Engines For 2019-2022 Period
400
1200
200
1000
800 0
2018 2019 2020 2021 2022
600
CFM56-5B CFM56-7B V2500-A5
400
200
0 Source: IBA data
2018 2019 2020 2021 2022
CFM56-5B CFM56-7B V2500-A5
If we compare
there will notthebe two charts,engines
enough it shows to
clearly
coverthat for 2018/2019 theforecast
retirement number of total
builtsparein,
engines
and for the
CFM56-7B
the covers
required shopthe visits.
required engines
This andforlonger
the type. considers
However, forintervals
the CFM56-5B and the V2500-A5
as predicated engine,
by the
the requirements
TATs (Turnaround are only just meeting
Time) the demand
will result for engines.
in OEM, including environmentalSource: IBAimpact.
data
difficulty in obtaining shop visit slots It also assumes a specific period of
Limited availability of spare parts could mean longerdowntime
downtime duringmaintenance
maintenance, compounded by
with
If OEMs and
we compare MRO
the two facilities.
charts, it shows This that for 2018/2019 for
clearlywill which
the number of total spare varies
engines for the
a longer wait and higher pricing for those parts, plus possible increases in lease rates too. Currently
CFM56-7B covers thethe
further intensify required
impact engines for the type. However,
of compound according for the
to CFM56-5B
engine type.and the
TheV2500-A5
forecastengine,
the
shoprequirements are only
visits i.e. first, just meeting
second the demand
and third run for hasengines.
an allowance for green-time leasing
shop visits overlapping. of engines to defer shop visits, this is
Limited
Theavailability
large numberof spare parts could
of these mean
engine longer more
types downtime duringasmaintenance,
notable the years gocompounded
by and more by
aflying
longercombined
wait and higher
withpricing for those
the strong parts, plusavailability
on-wing possible increases in lease rates too. Currently
is expected.
performance has resulted in the demand We also looked at the current engine
for spare engines to cover up-coming fleet size and the number of spare
visits, outstripping the available supply. engines required in circulation to
This is compounded by the quality MRO support the fleet. It assumes regional
shops worldwide edging towards full intervals predicated by the OEM and the
capacity due to the unexpected visits and minimum requirements of spare engines
ongoing upgrades to ‘problem’ engines. across operating airlines. As expected,
The reduction in available shop visit due to the number CFM56-5B/-7B and
places will result in spare engines being V2500s in those regions, Asia-Pacific,
continued demand for V2500s during on-wing longer than expected, which Europe and North America have greatest
this same period. At the current time we could mean there may not be an engine requirement for spare engines.
are already seeing a limited availability available when an on-wing engine has to IBA predicts that the current spare
of spares, which if more spare engines come off for a shop visit. engine to total engine ratio for the
do not become available through How did we reach this opinion? CFM56-5B/-7B and the V2500-A5 is
retirements and aircraft teardown, or IBA’s view on future scheduled shop approximately 7.5% for the CFM56
airlines spare stock, then IBA believes visit induction has an aircraft/engine engines, and 8% for the V2500 engine.

www.airlineeconomics.co Airline Economics: Aero Engine Yearbook 2018 69

SPARE ENGINES

The estimated spare numbers are shown CFM56-5B ENGINE SHOP VISIT & AIRCRAFT RETIREMENT FORECAST
in the chart below. However, this does CFM56-5B Engine Shop Visit & Aircraft Retirement Forecast
not take into account engines which may
1000 300
have already retired or are unserviceable
900

Number of Host Aircraft Retirements

themselves, and therefore the actual 250

Number of Engine Shop Visits

800
number could be lower.
If we compare the two charts, it 700
200
shows clearly that for 2018/2019 the 600

number of total spare engines for the 500 150

CFM56-7B covers the required engines 400
for the type. However, for the CFM56- 100
300
5B and the V2500-A5 engine, the 200
50
requirements are only just meeting the 100
demand for engines.
0 0
Limited availability of spare parts
could mean longer downtime during
maintenance, compounded by a longer SVs Retirements
wait and higher pricing for those parts,
plus possible increases in lease rates
too. Currently demand for CFM56 and CFM56-7B ENGINE SHOP VISIT & AIRCRAFT RETIREMENT FORECAST
V2500 spare parts are in demand due
in part to the low number of engines
CFM56-7B Engine Shop Visit & Aircraft Retirement Forecast
going for teardown. The demand for
1800 600
these parts is compounded by the fact
that OEMs cannot produce spare parts 1600

Number of Host Aircraft Retirements

500
Number of Engine Shop Visits

fast enough. The problem eases from 1400

2024 onwards when the numbers of 1200 400
A320ceo and B737NG aircraft retiring
1000
each year increases and forecast 300
800
shop visits decrease.
For some operators, these issues 600 200

may not have an impact due in part to 400

100
contracts between them and the MROs, 200
particularly PBTH (Power by the Hour) 0 0
contracts, which gives them priority
for slots, spare engines and parts, and
for others who have their own MRO SVs Retirements

subsidiary. Therefore, IBA expects these

issues to affect operators who do not have
contracts in place for the maintenance of
their engines, or operators who have an V2500-A5 ENGINE SHOP VISIT & AIRCRAFT RETIREMENT FORECAST
unexpected removal of an engine.
V2500-A5 Engine Shop Visit & Aircraft Retirement Forecast
In summary, IBA is expecting a 25-
35% increase in the number of shop 600 300
Number of Host Aircraft Retirements

visits for the CFM56-5B/-7B engines

500 250
Number of Engine Shop Visits

and continued demand for V2500 shop

visits. Due to this increase in demand 400 200
and the already limited spare engine
availability, there will be a shortage of 300 150

spare engines to cover the demand unless

200 100
additional engines are made available.
Some operators will feel this more than 100 50
others, with operators with long standing
contracts and PBTH contracts feeling it 0 0

less. After 2022, this shortage is expected

to start decreasing as more aircraft start
SVs Retirements
to be retired allowing for engines to
become available.

70 Airline Economics: Aero Engine Yearbook 2018 www.airlineeconomics.co

 www.iba.aero

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For more information email our iQ customer team at iQ@iba.aero.
DELTA TECHOPS
The future of engine repair
DeltaTechOps outlines its strategy and goals for the future of aero engine repair.
E
ngine maintenance at
Delta TechOps is currently
undergoing an overhaul
of its own. Delta TechOps
is the maintenance and
engineering support operation for Delta
Air Lines. Construction is proceeding
72 Airline Economics: Aero Engine Yearbook 2018
on schedule at two new Delta TechOps
facilities in Atlanta that will enable
Delta to perform maintenance on
next-generation engines - engines
with the most sophisticated and
advanced technologies.
Delta TechOps will open the world’s
largest test cell in December 2018 and
a new 100,000-square-foot engine
repair shop this August. The buildings
will support recently signed agreements
with Rolls-Royce and Pratt & Whitney
that will cover new generation
engine variants.
www.airlineeconomics.co

“Rolls-Royce and Pratt & Whitney
chose Delta TechOps because of the
high level of professionalism and quality
of MRO work the Delta TechOps team
provides the Delta fleet and more than
150 additional airline and aviation
customers across the globe,” said Don
www.airlineeconomics.co
Mitacek, senior vice president of Delta
TechOps. “The new maintenance
projects, along with our new facilities,
fortify Delta’s position as the largest and
best MRO provider in North America.”
NEW TEST CELL
When it opens, the new test cell will be
capable of safely running a mounted,
stationary engine at full power with
150,000 pounds of thrust. The test cell
section will stand 48 feet tall, with inlet
and exhaust sections measuring 66 feet
and 78 feet respectively. Several other
massive structures related to the test cell
include the augmenter tube and test cell
doors. The augmenter tube (essentially a
large exhaust pipe) is 120 feet long and
22 feet in diameter.
The delivery of the tube was the widest
roadway delivery project permitted in
the state of Georgia. It took up three
DELTA TECHOPS
highway lanes of traffic. (See picture.)
Also noteworthy are the test cell doors,
which will be 48 by 26 by 2 feet of solid
concrete set in a steel frame and weigh
300,000 pounds.
The first level of the test cell will
house preparation bays, a wash bay and
work area for shop leads and mechanics.
The second floor will be home to
engineering support, conference rooms,
and a customer viewing room with
windows that provide access into the
test cell control block.
NEW ENGINE SHOP
The new engine shop is located where
several large hangar maintenance bays
used to stand. Over 100,000 square
feet of hangar space has been converted
into a workshop consisting of an engine
assembly and disassembly area, WIP/
kitting/Kanban area, and repair and
Airline Economics: Aero Engine Yearbook 2018 73
DELTA TECHOPS

support area. Several new elements

and structures have been added to
the space or replaced existing ones as
part of the transition. A new curtain
glass wall is replacing existing hangar
doors, allowing natural light in while
preserving a view to the outside. More
than 2,000 pieces of glass are being
used to create this wall. A high-bay
crane will be included in the shop. Six
25-ton bridge cranes located across
the four crane bays will provide 10
hook-up points.
“This will be more than an assembly
shop,” Mitacek said. “We will be
developing and performing piece part
repairs and those repairs will be available
to engine operators worldwide.”

AGREEMENTS WITH ROLLS-ROYCE AND

PRATT & WHITNEY
In October 2015, Delta and Rolls-Royce
signed a formal agreement for Delta
TechOps to become an Authorized
Maintenance Center for Rolls-Royce
engines. Under the agreement, Delta
TechOps will provide engine services for
the latest generation Trent XWB, Trent
1000 and Trent 7000, in addition to the
BR715 which had already been added to
their engine capabilities.
Additionally, in April, Delta and
Pratt & Whitney signed an agreement
selecting Delta TechOps to become
a major MRO provider for the next-
generation PurePower PW1100G and
PW1500G engines, the power plant
for Delta’s A321neo and Bombardier
C Series fleets. During the next 30
years, TechOps is expected to provide
5,000 shop visits on new geared-turbo
fan engines.
Delta TechOps got a chance to
celebrate this event with Pratt & Whitney
at MRO Americas 2018 in Orlando, FL,
hosting a signing party at the Delta
TechOps booth. Chris Calio, P&W
President, Rick Deurloo, SVP Sales,
Marketing, & Customer Support, and
Mary Ellen Jones, VP Sales – Americas
were some of the Pratt & Whitney
attendees. From the Delta TechOps side
attendees included Don Mitacek, SVP
Technical Operations, Jack Arehart, VP
MRO Services, and Mike Moore, SVP
Maintenance Operations. “The signing
marked a great moment in the long-
standing relationship between Delta
and Pratt & Whitney, which dates back
to the 1930’s” said Don Mitacek.
Jack Arehart, vice president of
MRO Services, said, “Rolls Royce
and Pratt & Whitney went with Delta
TechOps because we treat all customer
projects with expert care and do not
prioritize Delta work over that of
others. Our approach is to work hard
and fast and always provide great and
reliable service.”
OTHER TECHOPS INVESTMENTS
To further enhance engine maintenance
capabilities, Delta TechOps has invested
in two other major projects: a hot
section repair shop and an additive
manufacturing shop.
The hot section repair shop will
allow Delta TechOps to perform turbine
section component repairs internally.
Nearly half the cost of engine parts is
contained in the hot section airfoils
and high value repairs are currently
dominated by the OEMs. Delta believes
in-house capabilities reduce the cost of
materials, provide better visibility over
the process, quicker turn times, and on-
site support.
So far 27,000-square-feet of space
has been dedicated to the shop with
the possibility of expanding to 37,000
square feet. The hot section airfoil shop
is expected to be in operation by early
January 2019.
During the past three years,
additive manufacturing has become
more prominent at Delta. TechOps is
pursuing three broad streams of additive
manufacturing technologies for parts.
The first is polymeric and polymeric-
composite parts for cabin interiors,
part masking, and prototype tooling.
The second is weldable metallic alloys
for engine, components, and aircraft
structural parts. The last is traditionally
unweldable cast alloys and/or single
crystal superalloys.
Several printers are already on site
at Delta TechOps and the additive
manufacturing team is using it to
produce tools, proto-typing, masking
fixtures and for training.
THE FUTURE
Mitacek said Delta TechOps continues
to be bullish about the MRO market.
During the past five years, revenue
and profitability have both improved.
“As engine technology advances, MRO
shops must advance too,” he said. “Our
brand new test cell, new engine shop,
hot section repair shop and additive
manufacturing shop are just some of the
ways Delta TechOps is gearing up for
next-generation engines.”

74 Airline Economics: Aero Engine Yearbook 2018 www.airlineeconomics.co

 It’s about you.

Only one MRO has the expertise, experience

and purchasing power that comes from keeping more than

800 planes up and flying for the world’s #1 airline.

And, we can put that power to work for you, every single day.

ONLY ONE MRO CAN TREAT YOU

LIKE THE WORLD’S #1 AIRLINE.
© 2017 Delta TechOps

deltatechops.com
AERONORWAY

A fresh Norwegian spirit

The CFM56 engine is expected to generate high volumes of MRO demand in the next
five years and authorised independent repair station, Aero Norway, is focused on
total precision to deliver exceptional industry recognised EGT margins. Investment
strategies have been put in place to foster fast-paced growth and prepare the business
to meet pent-up demand for its CFM56-3, CFM56-5B and 7B engines repair and
maintenance services.

I
n a buoyant CFM56 engine
market, operators and MROs
are are struggling to induct
engines because there are so
many of this highly successful
engine type in operation. The -5 and -7
have performed particularly strongly
on-wing leading to delayed shop visits.
Some engines listed for a first shop visit
in 2015 and 2016 will only be going in for
repair in 2018 and 2019. This situation
led to an unexpected shortage of work
in 2015 and 2016, however from 2018
through to 2020 operators may struggle
to get their engines into the shop. Aero
Norway originally forecast a 60% to 40%
split in 2018 between the -3 compared
to the -5 and -7. However, demand is so
great for the latter two that it predicts a
50-50 split is now more likely.
SUSTAINING FLEXIBILITY OF
WORKSCOPE
Aero Norway is benefiting from these
current market forces and the business
is streamlining processes and building
skilled resources to ensure it can sustain
its flexibility and commitment to fast
turn-around times. Aero Norway is
focused on delivering the best service
and industry-recognised EGT margins.
So to best serve its customers – MROs,
independent engine owners and
leasing companies – Aero Norway has
recently taken steps to underpin the
business in three fundamental ways:
financial support to deliver working
capital; sourcing of repair partners
that can complement the flexibility of
workscope that they, as an independent
organisation, strive to offer; and
the development of highly trained
apprentices to ensure continuity of the
Company’s engineering skill sets for the
next 20 years and more.
Aero Norway predict peak demand
for the CFM56 will occur from 2018
through to 2021 at its Stavanger engine
MRO facility and it anticipates it will
soon be running to full capacity. The
plan is to induct 92 engines this year,

76 Airline Economics: Aero Engine Yearbook 2018 www.airlineeconomics.co


comprised of 52 -3s and 40 -5s and -7s.
By 2020, it foresees the engine shop
running at full capacity of around 120
engine inductions.
BURGEONING GLOBAL OPERATOR AND
LESSOR DEMAND
After the predicted peak period of
CFM56 ends in 2021, Aero Norway plans
to remain a CFMI repair specialist as this
is where the organisation holds a depth
of expertise and knowledge. After talking
with CFMI, Aero Norway hopes that the
rigorously sustained quality output of the
repair shop will support their strategy
to obtain a licence for the LEAP engine
because eventually there will be a lot of
www.airlineeconomics.co
demand for this engine type. It will not
be until the end of 2018 at the earliest
that CFMI will grant any repair licences
to independent MROs like Aero Norway.
But with a relationship already spanning
25 years, the company is optimistic
that burgeoning global operator and
lessor demand for competitive and high
quality MRO support will see them at
the forefront of delivering this service.
The costs involved with introducing the
model, and evaluating the necessary
tooling required, means that any
potential introduction of the LEAP
engine into the facility would be 2020 at
the earliest.
Aero Norway aims to keep its
AERONORWAY
customer base as wide as possible and
across all global regions. The primary
focus has always been with smaller
airlines operating no more than 40
aircraft because it can customise
programmes and inductions according
to their needs. The CFM56-5B is the
engine choice of the global A320 family
due to its high reliability and durability,
and the CFM56-7B is exclusively
powering the B737 NG – making it the
most popular engine combination in
commercial aviation.
The facility is multi-release FAA,
EASA, TCCA, CAAC, GCAA and DGCA
certified which qualifies its worldwide
appeal to operators and lessors of CFM56
Airline Economics: Aero Engine Yearbook 2018 77
AERONORWAY
type engines. If there is a business
opportunity it will secure the additional
approvals it needs however the majority
of operators and lessors find approvals
from these regulators indicative of Aero
Norway’s credentials.
Based on Aero Norway’s scheduled
induction work-flow and the
partnerships with global MROs, Aero
Norway recently secured significant
working capital with Sparebank 1 SR-
Bank, the largest bank in Norway. This
working capital facility is being provided
as a combination of engine purchase
financing, general overdraft and capital
expenditure funding for new tooling for
the workshop. It was important for Aero
Norway that this funding should come
from Norway.
There is a definite need to have leased
spare engines available to customers, so
some of this funding has been used to
procure engines that can then be leased
to operators while their other CFM56
engine undergoes a shop visit. Typically,
turnaround times on the CFM56 can
be between 55 to 60 days, and smaller
operators in particular cannot afford
to stop flying. Other large MROs have
taken this approach and Aero Norway
has found distinct benefits for both the
MRO and the operator/customer. It
enables Aero Norway to offer a more
complete package. The company is also
investing to make the facility paperless
and bring in additional machinery to
improve productivity.
Utilising the most modern, up to date
equipment and technology, ensures that
all maintenance and repairs carried out
in the Stavanger workshop, on-wing, or
undertaken off-site by specialist repair
78 Airline Economics: Aero Engine Yearbook 2018
vendors, are implemented with precision
to the highest possible standard. Through
the creation of support agreements
with outstanding specialists around
the world, Aero Norway is focused on
enhanced operational efficiency with
the ability to maximise the fast slot
induction and quick turn-around that
its global customers demand.
A COMMITMENT TO KNOWLEDGE
SHARING
The final lynchpin of Aero Norway’s
on-going change programme relates
to human capital. The leadership
team has been strengthened with chief
executive officer, Glenford Marston,
now supported by chief business officer
Rune Veenstra, and Neil Russell as new
chief operating officer. These highly-
experienced industry veterans will pilot
the organisation’s growth strategy.
Aero Norway is also expanding its
apprentice scheme working with the
Norwegian Government and seven more
ambitious young people will be joining
the current team of ten apprentices
who enrolled in 2017. This further
reinforces Aero Norway’s commitment
to knowledge sharing and deepening the
expertise and certification of its internal
resource pool.
PROLONGING THE LOW-COST USEFUL
LIFE OF LEASED ENGINES’ GREEN TIME
By 2024 and the oldest CFM56-7Bs
will be over 26 years old and at the
same time it is predicted that over one
hundred A320neo and 737NG aircraft
will be retiring per year, releasing some
300 engines to the market annually. Due
to the reliability of these engines there
will be plenty of remaining life so they
will either be re-deployed or parted out.
This will reduce maintenance costs and
further prolong the low-cost useful life
of leased engines’ green time.
AERO NORWAY AS
With a strong and growing international
reputation, Aero Norway builds long-
term partnerships with flagship airlines
and low-cost carriers, aircraft leasing
companies and OEMs.
Aero Norway AS is an authorised
CFM repair station based in Stavanger
Airport, Sola, Norway. The modern
facility was designed specifically to
provide MRO services for CFM56®
engine variants and is fully equipped
with all the necessary equipment to
provide high quality maintenance
services with industry recognised EGT
margins for CFM56-3, CFM56-5B
and CFM56-7B engines. Aero Norway
offers a full range of engine MRO
services: engine maintenance, repair
and overhaul; engine test cell runs; full
restoration; back shop parts repair;
engine investigation; special customer
requests; and non-destructive testing
& diagnostics. Aero Norway is multi-
release FAA, EASA, TCCA, CAAC,
GCAA and DGCA certified. Visit www.
aeronorway.no
Serviced engine types: CFM56-3,
CFM56-5B and CFM56-7B
www.airlineeconomics.co
 Visit us at MRO Europe 2018
October 16-18. Booth 5046

unequivocal precision
exceptional EGT margins

Aero Norway is an independent engine MRO

delivering globally recognised flexible workscopes
for CFM56-3/5b/7b series engines.

Skilled and experienced technicians combine a

fresh Norwegian spirit, with a long and proud
international heritage to provide fast turnaround,
quick slot inductions and a range of highly
competitive and reliable engine services that are
multi-release FAA, EASA, TCCA, GCAA, CAAC
and DGCA certified.

It’s precisely why operators choose Aero Norway.

aeronorway.no
 Trent 1000/900
Rolls-Royce is grappling to take charge of
the compressor and turbine issues related to
the Trent 1000 Package C and B engine types
mainly installed on the 787 aircraft type.
N
ew engines are notorious
for their entry-into-
service (EIS) issues – it
can take several hundred
flight hours and cycle
before any issues come to light.
In early 2017, pilots of an Air New
Zealand 787 performed an engine in-
flight shutdown following reports of
vibrations, which upon inspection was
revealed to have been caused by a missing
intermediate pressure turbine blade
at the shank caused by sulphidation
corrosion cracking, according to an
airworthiness directive, EASA AD No.:
2017-0056, later issued by the European
Aviation Safety Agency (EASA). The
EASA directive reduced the number
of landing and take-off cycles between
inspections from 200 to 80.
80 Airline Economics: Aero Engine Yearbook 2018
Rolls-Royce has been working with
Boeing since the first issues arose
to find a permanent solution to the
problems. But the issues have endured,
spreading to the package B type
engines that had previously thought to
have been unaffected.
In April 2018, airlines with affected
engine types were restricted by the
publication of an AD from the US
Federal Aviation Authority (FAA) that
limited extended operations on the 787-
8/-9 aircraft after it was found that after
an engine failure, prolonged operation
at high thrust settings on the remaining
engine during an ETOPS diversion
may result in a second engine failure
before the aircraft could complete the
diversion. In practice, some airlines were
forced to alter their transatlantic routes,
increasing flight times and fuel burn, to
ensure they are the required minimum
distance from a diversion airfield.
In an operational update published
on May 30, Rolls-Royce confirmed that
it had trebled its maintenance capacity
to fix the issues with the Trent 1000
Package C engines and announced a
range of new activities the manufacturer
was taking to deal with the demand for
increased inspections of the engines and
plans to introduce a permanent fix for
the intermediate pressure compressor
rotor issue by the end of 2018.
In May, Rolls-Royce stated that it
had been able to increase the number
of engines it can inspect at any one
time to 20 by the use of a combination
of lean workscope methods and a
more streamlined process, as well as
www.airlineeconomics.co

expanding capacity at Rolls-Royce
MRO facilities and approved network
locations. The manufacturer also
stated that it had developed new on-
wing inspection techniques “to support
airlines in meeting the requirements of
the Airworthiness Directives as quickly
and efficiently as possible”.
However, the situation was
exacerbated on June 11, when
Rolls-Royce confirmed that it had
found similar issues relating to the
Intermediate Pressure Compressor
(IPC) in the Trent 1000 Package C
engines, in another variant, the Package
B engines. Rolls-Royce said that it will
carry out a one-off inspection of its Trent
1000 Package B fleet, “to further inform
our understanding”. The Package B
standard has been in service since 2012
www.airlineeconomics.co
“We are intensely
focused on minimising
this and we have set
our teams the challenge
of doing everything
we can to recover our
customers’ operations
as swiftly as possible.”
Chris Cholerton, Rolls-Royce
and consists of 166 engines. According
to FlightAscend’s Flight Fleet Analyzer
database, there are 61 aircraft with
Package B type engines currently in
service, with eight in storage.
On July 4, All Nippon Airways
announced that was cancelling more
than 100 domestic flights due to
additional mandatory inspections of
the Rolls-Royce Trent 1000 Package B
engines on its 787s. In a statement, Yuji
Hirako, president and chief executive
officer of ANA, said that although the
airline has been working very closely
with Rolls-Royce over the past two years
to minimise the impact of the issues
with the engines on its flight schedule,
“due to the additional mandatory
inspections which were announced in
mid June,we are cancelling a limited
number of flights”.
At the time the new inspection process
was announced, Rolls-Royce described
the impact on customer operations as
“limited” since the programme of one-
off inspections will involve on-wing
existing inspection techniques. For
ANA, however, the issue has resulted in
cancellation of flights, and more airlines
may follow suit.
Rolls-Royce is working hard on a
permanent fix for the IPC issue. In the
May update, the manufacturer confirmed
that the revised compressor blade has
been installed in a test engine and has
already begun testing. The Rolls-Royce
engineering and design team has been
able to accelerate the development of the
new blade through a combination of the
latest computing capability, “fast make”
ROLLS-ROYCE
competencies within the supply chain,
and the development of a dedicated
facility in Derby, UK, to build engines on
which the blades will be tested. Loosely
translated, fast make, refers to different
manufacturing methods for blades
without casting that is more expensive
but certainly faster.
Chris Cholerton, Rolls-Royce,
President – Civil Aerospace, said: “We
fully recognise the unacceptable levels of
disruption our customers are facing. We
are intensely focused on minimising this
and we have set our teams the challenge
of doing everything we can to recover
our customers’ operations as swiftly
as possible. We are drawing on the full
resources of Rolls-Royce to address the
issue and I’ve seen great teamwork and
innovative thinking both across our
organisation and in our partnership
with Boeing.”
He added: “While we have made
important progress in supporting our
customers, there is clearly more to
do and we will not rest until we have
ensured the engine meets the high
standards our customers rightly expect.
Our teams remain focused on the task in
hand and while we expect the number
of aircraft affected to rise in the short
term, as the deadline for the completion
of initial inspections approaches, we are
confident that we have the right building
blocks in place to tackle the additional
workload this will create.”
With the installed base of Rolls-
Royce engines estimated to grow from
4,409 in 2017 to more than 6,500 in
2022, major shops visits per year will
grow from 240 today to around 650 in
2022. The company needs to prepare for
the considerable ramp up in required
MRO shop capacity, which as mentioned
above, it has accelerated to cope with the
demand from the required check and
repair visits for the Trent 900/1000
engines types.
Rolls-Royce is continuing to expand
its Trent engine service network
even further. On June 10, it signed
an agreement with Thai Airways
International (THAI) to explore how
the two companies will work together
to expand the Trent CareNetwork
by building on THAI’s existing
Maintenance, Repair and Overhaul
(MRO) capabilities.
Airline Economics: Aero Engine Yearbook 2018 81
ROLLS-ROYCE
Becoming an Authorised
Maintenance Centre (AMC) for Rolls-
Royce will enable THAI to support its
growing fleet of Rolls-Royce engines
while also generating additional capacity
and flexibility within the Rolls-Royce
CareNetwork. THAI operates around 80
widebody aircraft, of which more than 50
are powered by Rolls-Royce engines.
Speaking at an event in Bangkok to
mark the agreement, Cholerton said that
he expects the increased capacity to be
available “as early as 2019”.
Usanee Sangsingkeo, Thai Airways
International PCL, Acting President
said: “This agreement builds on THAI’s
existing MRO facilities to be able to
repair new engine types that are currently
used by commercial airlines today. THAI
has the capability to expand its engine
maintenance services for Rolls-Royce
Trent engines, which will meet the needs
of the regional market, making sufficient
use of the maintenance facilities and
further develop a joint business venture
together. This collaboration will also
increase revenue earned from third-
party customers.”
Rolls-Royce has not changed the
assessment of the financial implications
of Trent 1000 Package C in-service
issues announced on April 13, 2018.
The understanding is that Rolls-Royce
will account for any additional costs
as the situation continues by reducing
discretionary spending elsewhere
in the business. Those savings were
outlined by chief executive Warren
East on June 15 when he addressed
investors and analysts at a briefing in
London that set out in detail the plans
to restructuring the entire business,
attempt full-scale culture change and
minimise costs, which included job losses
(see News page 8).
Responding to analysts’ questions at
the briefing, East recognised the lack of
adequate blade and MRO capacity, which
has been polarised by the extraordinary
peak in requirements for the Trent 1000,
and explained that in response, rather
than triple its MRO capacity, it had
“tripled [our] ability to deal with Trent
1000” as the crisis situation had surfaced
some “fantastic behaviours”. One example
he gave was the rapid development,
approval and manufacture of a new
engine stand within the space about six
82 Airline Economics: Aero Engine Yearbook 2018
weeks for a fraction of the normal cost,
which can be easily transported. “One of
the other advantages of this IKEA flat
pack [engine stand] is that you can ship it
around the world quite easily and get this
stand to airline home hubs [where] they
can do on-wing activity on the new stand.
That would not have happened without
the Trent 1000 issue that we’re dealing
with now,” he said. East hopes to channel
those lessons into normal activities
within the restructured company, which
can be achieved by placing more control
and responsibility within the business
units and by decreasing the size and
scope of the central management HQ.
Chief financial officer, Stephen
Daintith, outlined plans at the same
presentation to cut the average cash
loss per engine from £1.6 million to
£400,000 over the next five years
using a combination of changes to
sourcing, engineering, commercial
terms of partnering, and manufacturing
techniques. One example he gave was
on the Trent 7000 where pipe supply
was transferred from Spain to Mexico,
which generated a £50,000 benefit per
engine, while a significant reduction in
forging size, weight and cost on front fan
case on the Trent XWB-97 has generated
a similar amount of savings per engine.
Across the Trent portfolio, Rolls-Royce
is also investing in its manufacturing
capability for shafts, discs & blisks,
which will halve machining operations
and manual intervention, and enhance
quality, leading to a £30,000 benefit
per engine, according to the figures
presented by Daintith.
In the meantime, Rolls-Royce
is pressing ahead with testing the
permanent fix for the IPC. The problem
with engine issues and securing
permanent fixes, is that there is often
a cascade of issues – when one area is
fixed it can lead to unexpected issues in
other areas of the engine. Rolls-Royce
has given a target deadline for the
permanent fix of the IPC issue of the end
of this year. Market observers suggest
that this is achievable but only if there are
no new problems identified during the
testing phase.
Analysts raised concerns at the
recent briefing that the issues found on
the Package C and now Package B type
engines could spread to the Trent XWB
and Trent 7000 engines. East said that it
would be “foolhardy” to state that these
issues couldn’t appear elsewhere and
admitted that they cannot be sure about
the durability of all the components on
the XWB until the first 20 to 30 engines
make the first shop visit, which is still
another 15 to 18 months out. But as of
today, he said that no evidence of the
turbine issues have been reported on the
XWB. “Obviously because of the issues
on the Trent 1000, we’re doing an awful
lot more inspection of XWB engines now
which is giving us still a lot of confidence
that we’re not seeing early signs of the
turbine issues,” he said. Since the Trent
7000 is a derivative of Trent 1000,
East said that the company is “making
very certain when we start making
volumes of Trent 7000 … that any
modifications and design improvements
that we can take from the Trent 1000
will be incorporated into the Trent 7000.
However for the testing we’ve done Trent
7000 so far, we’re not seeing a potential
for those issues.”
www.airlineeconomics.co
 GROWTH FRONTIERS NEW YORK 2018
16th-18th October 2018
The 3 West Club, New York, USA

Reception Growth Frontiers Conference Aviation 100 Americas Awards

The 3 West Club, New York, USA The 3 West Club, New York, USA & 40 Under 40 celebration
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AERO ENGINE PARTS
Playing a valuable part
The market for parts and components for in-demand aero engines remains buoyant,
especially in the years of low fuel costs as operators fly their older aircraft for longer.
B
y all reports the market
for aero engines parts is
buoyant, with demand for
certain types outstripping
supply, as airlines fly older
aircraft for longer to compensate for the
late delivery of new technology aircraft.
“There is a consistent use of used
serviceable material (USM) by the
shops as they look to service customer
engines with the best material and
repair content,” says Carl Glover, vice
president, engine parts supply at AAR.
“The market is vibrant with many shops
servicing maturing engines, driven by
longer- than-expected utilisation of
current generation (CG) assets. This has
been extended due to low energy pricing,
lease extension of current fleet, and
some unfortunate “teething problems” of
new generation engines and associated
delivery delays.”
There is some oversupply of parts for
certain engines as fleets retire - CFM56-
84 Airline Economics: Aero Engine Yearbook 2018
3, JT8D-200, CFM56-5C – while others
report a complete scarcity of parts
for Pratt & Whitney 4000 engines,
specifically TB1 and TB2 blades.
“Many greentime engines are coming
to their end of life and need to be
overhauled but the facility in Singapore
that repairs and overhauls them is
struggling to find parts,” says Ran
Ackerman, MK Aviation. “There is such
a lack of the blades that P&W has had to
control which MRO and/or airline will
receive them. The only ones currently
available are from Chromalloy.”
The PW4000 and other larger fan
engines such as the CF6-80C2 are seeing
a smaller resurgence mainly due to life
extensions through cargo conversions.
“Some engine variants have been totally
displaced for demand as lessors / owners
are getting creative in using up the
green time capacity that is out there
such as on the Trent series,” says AAR’s
Pascal Parant.
Parts for the in-demand V2500
engine are a valuable investment. The
scarcity of the engine type has driven up
prices to arguably unattainable levels for
many in the industry, with unconfirmed
reports circulating of a V2500 engine on
offer for close to the price of a new engine.
This demand makes the market for parts
a very valuable investment indeed, which
is why Rolls-Royce & Partners Finance
jumped on the opportunity to control the
market in 2015, when it directly entered
the market following the purchase of
the V2500-A5 serviceable used parts
business from Rolls-Royce.
Engine leasing companies such as
RRPF have a distinct advantage in
the parts markets since they have a
steady supply of engines for tear down
to replenish their stock. For RRPF,
integrating a parts trading business with
the engine leasing company provides
reassurance to its customers that it can
continue to support them whatever the
www.airlineeconomics.co

market conditions. Additionally, such as
with the V2500 and for now the PW4000
market, used parts can become another
valuable revenue stream and can help
save maintenance costs since more than
two thirds of the cost of a performance
restoration shop visit is for materials.
“The V2500-A5 used material market
is only really getting started with at
least as many, if not more, shop visits
to come as have been completed to
date,” says Ben Hughes, marketing and
business development director, Rolls-
Royce & Partners Finance. “There are
approximately 6,500 engines in service
and the majority have not reached their
second shop visit yet. As the engine
leasing company with the largest
portfolio of V2500-A5 engines, we are
excited about the potential of the market
for serviceable used material coming
from our engines.”
Market observers report an imbalance
in the supply and demand relationship
for some narrowbody engine variants is
preserving or increasing values. At the
same time, aircraft lease extensions have
deferred some of the feeder engine stocks
as they remain on wing. “Where this
gets interesting,” says Glover, “is if those
engines do not go through ESVs or LLP
replacements then they could ultimately
be removed with less residual values
in future. This also impacts aircraft
residual values quite considerably with
current generation products being less
desirable after new fleet introductions.”
These market dynamics are forcing
lessors and operators to work much
more closely in partnership with parts
suppliers, such as AAR, to optimise
the greentime of engines and spares as
much as possible. “The quandary on
some engine variants is the lack of USM
demands and the ability to recognise
residual economic value of assets; the
scarcity in piece parts remains as the
engine residual costs are far greater
than piece part value. This is further
compounded by the turnaround time
(TAT) bottleneck for component repairs
due to shop capacities or IP controls,”
says Glover.
There has been a flurry of new
investors into the parts market over
the recent past, which are seeking
returns promised by end-of-life focused
platforms that realise the value for
www.airlineeconomics.co
investors during that latter stage in the
life of the aircraft. This spike in interest in
the sector has caused demand for certain
assets to increase and subsequently
prices too.
“There have been new entrants
into the aerospace market looking
to deploy the “dry powder” of capital
that is out there chasing returns,” says
AAR’s Parant. “As interest rates stay low,
investment houses and private equity
money is looking for a home. We saw
this inflate aircraft and engine trading
prices over the last four years. Where
this now gets interesting is with some
of the “adjustments” that those parties
holding the assets may have to make
to reflect acquisition prices supported
by the economic residuals from the
USM markets.”
He adds: “As always, the key is
advanced understanding of the aircraft
residual values to minimize any negative
impacts of holding higher-cost, slow-
moving parts. Experienced companies
such as AAR have inventory models
and component level intellectual
property that we use to model returns,
risks and variables to help us take the
right approach.”
Unscheduled incidents also often tip
the supply-demand balance. The issues
identified on the CFM56-7B following
the Southwest Airlines incident (see
News page 12) caused a spike in demand
for fan blades onto an already tight
market for spares for the engine type.
The Trent 1000 issues, which have
caused a capacity issue for Rolls-Royce
manufacturing new fan blades have been
well documented (see Trent 1000/900
page 80).
Unscheduled issues such as these
require airlines and operators to work
quickly to inspect and rectify any issues
as rapidly as possible to get those aircraft
back in the air. However, the OEM
dominance of the aftermarket requires
either those engines to be maintain by
OEM-approved or OEM-only MRO
networks, or insist that parts in their
engines are OEM manufacturers parts
only, which severely curtails the ability
of the owner or operators of that engine
to improve turnaround times and
reduce costs.
“There are some issues preventing
use of PMA/DER parts regarding re-
AERO ENGINE PARTS
marketability and residual values; one
of the main reasons cited why lessors
don’t allow PMA or DER,” says Parant.
“Most EIS aircraft engine variants are
falling under long-term agreements
that negate the visibility on repairs and
PMA introduction. The OEM or OEM-
affiliated ownership of the engine MRO
marketplace is also impacting this trend
with diminishing demands for PMA/
DER repair offerings. With engines
that are repaired through tailored
repair structures, on condition, T&M/
NTE contracts, we see cost reductions
through enhanced work scopes, non-
new parts optimisation (where available)
and greentime management.”
Some of the more enterprising parts
and component supply companies,
including lessors and airlines, have
created spare parts pools to help lower
their overall costs but also to ensure
access to specific parts to service
their fleets.
“AAR has seen an increase in demand
for “closed loop” spare parts pooling for
customers who use assets and repair
management services that we offer to
help them keep their CASM’s under
control,” says Parant. “This pooling is
typically focused on components with
high TAT variables (on condition) but
also on engine LRU items where the
customers want our workmanship in
increasing MTBR’s and engineering
reliability support.”
Looking forward, the parts market
is also embracing the digital revolution
to capitalise on the efficiencies it brings.
AAR Digital Services is developing
solutions with its customers to analyse
data that will allow them to make more
informed decisions. The unit is also
helping AAR services & MRO businesses
with inventory and customer analytics
to ensure components are ready for our
customers when needed. This ranges
from whole engines, to components
to consumables.
“Digital integration in the supply
chain is an area we’ve spent a lot of
time on, whether direct to customers’
ERP systems via B2B/EDI or digitally
through a third-party service provider
that our customers use. This gets very
interesting for records retention and the
“digital thread” of information amongst
the aftermarket ecosystem,” adds Parant.
Airline Economics: Aero Engine Yearbook 2018 85
ENGINE DATA

CFM56-3 SERIES
Overall Pressure Compressor Turbine Engine Dimensions (in)
No. & Type of TSFC at Max. Dry Weight
Variants Aircraft Thrust (lbf) Bypass Ratio pressure Ratio at Max. Stages (Fan/ Stages (HPT/
Combustors Power (lb) D L
ratio Power LPC/HPC) LPT)

Boeing 737-300,
CFM56-3B-1 20,000 6 27.5 22.6 1/2/9 1/4 1/A 0.38 4,276 63 93.1
Boeing 737-500

Boeing 737-300,
CFM56-3B-2 22,000 5.9 28.8 24.3 1/2/9 1/4 1/A 0.39 4,301 63 93.1
Boeing 737-400

Boeing 737-300,
CFM56-3C-1 Boeing 737-400, 23,500 6 30.6 25.2 1/2/9 1/4 1/A 0.39 4,301 63 93.1
Boeing 737-500

CFM56-5B PIP SERIES

Takeoff thrust Maximum Compressor
Bypass ratio Temp. at flat Fan Diameter Turbine Stages Dry weight
Variants Aircraft (Maximum) Climb Thrust Stages (Fan/ Length (in)
(CR) rating (F°) (in) (LP/HP) (lbs)
(lbf) (lbf) Booster/HPC)

-5B1 A321 30,000 6,420 5.5 86

-5B2 A321 31,000 6,420 5.5 86

-5B3 A321 33,000 6,420 5.4 86

-5B4 A320 27,000 5,705 5.7 111

-5B5 A319 22,000 5,705 6/5.90 113 68.3 1/4/9 1/4 5,250 102.4

-5B6 A319 23,500 5,705 6/5.90 113

-5B7 A319 27,000 6,420 5.7 111

-5B8 A318 21,600 6,420 6/5.9 113

-5B9 A318 23,300 6,420 6/5.9 113

CFM56-5B “DAC”
Maximum
Take-off Thrust
Continuous Engine Dimensions
(daN)
Thrust (daN)
Constant thrust Constant thrust
for ambient for ambient Dry Weight Center of Gravity
Variants Aircraft NOx Length (in) *** Width (in) Height (in)
temperature temperature (kg) ** (Engine Only) (in)
below 30 °C below 25 °C

-5B1/2P 13,345 12,940

-5B2/2P 13,789 12,940

-5B3/2P, -5B3/2P1 A319/ 14,234 12,940

A320/ * 2,500.60 102.35 75 83 204.80 ± 0.98
-5B4/2P A321 10,840

-5B6/2P 9,008

-5B9/2P 9,008

* NOx Standard in accordance with Part III, Chapter 2, § 2.3.2, c) (CAEP/4)

** Dry Weight (kg) (Including basic engine, its accessories and optional accessories, as well as engine condition monitoring equipment.)
*** Length from the fan case forward flange to the LP turbine case aft flange

CFM56

86 Airline Economics: Aero Engine Yearbook 2018 www.airlineeconomics.co

 ENGINE DATA

CFM56-5B “SAC”
Maximum
Take-off Thrust (daN) Continuous thrust Engine Dimensions
(daN)
Center of
Constant thrust for Constant thrust (daN) Constant thrust (daN) Constant thrust (daN)
Dry Weight Length Width Height Gravity
Variants Aircraft ambient temp. below for ambient temp. for ambient temp. for ambient temp. NOx
(kg) ** (in) *** (in) (in) (Engine
30 °C below 45 °C below 50 °C below 25 °C
Only) (in)

-5B1, -5B1/P,
13,345 12,940
-5B1/3

-5B2, -5B2/P,
13,789 12,940
-5B2/3

-5B3/P,
-5B3/P1,
14,234 12,940
-5B3/3,
-5B3/3B1

-5B4, -5B4/P,
12,010 10,840
-5B4/3

-5B4/P1,
-5B4/2P1, 12,010 10,840
-5B4/3B1 A318 /
A319 / 204.80 ±
* 2,454.80 102.35 75 82.87
A320 / 0.98
-5B5, -5B5/P, A321
9,785 9,008
-5B5/3,

-5B6, -5B6/P,
10,453 9,008
-5B6/3,

-5B7,
-5B7/P, 12,010 10,840
-5B7/3,

-5B8/P,
9,608 8,478
-5B8/3,

-5B9/P,
10,364 9,008
-5B9/3

* NOx Standard in accordance with Part III, Chapter 2, § 2.3.2, c) (CAEP/4)

** Including basic engine, its accessories and optional accessories, as well as engine condition monitoring equipment.
*** Length from the fan case forward flange to the LP turbine case aft flange

CFM56-5B

www.airlineeconomics.co Airline Economics: Aero Engine Yearbook 2018 87

ENGINE DATA

CFM56-5C
Pressure Compres- NOx
Overall Turbine No. & Type TSFC
Takeoff Bypass Ratio Fan Diam- sor Stages (margin Dry Weight
Variants Aircraft pressure Stages (HP of Combus- at Max. Weight (lb) Length (in)
thrust (lbf) ratio (CR) at Max. eter (in) (Fan / LPC / to CAEP 6 lb
ratio (T/O) / LP) tors Power
Power HPC) limits)

A340-211/-
-5C2 31,200 6.6 37.4 31.5 1/4/9 1/4 1/A 0.32 5,645
311

-5C2/F,
-5C2/G,
-5C2/4, 31, 200 -
A340 6.4 - 6.6 17.4 - 38.3
-5C2/F4, 34,000
-5C2/G4,
-5C2/P

A340-212/-
-5C3 32,500 6.5 37.4 32.6 1/4/9 1/5 1/A 0.32 5,700
312
72.3 * 8,796 103.23
-5C3/F,
-5C3/F4,
31, 200 -
-5C3/G, A340 6.4 - 6.6 17.4 - 38.3
34,000
-5C3/G4,
-5C3/P

A340-213/-
-5C4 34,000 6.4 38.3 33.9 1/4/9 1/5 1/A 0.33 5,700
313

-5C4/P,
31, 200 -
-5C4/1, A340 6.4 - 6.6 17.4 - 38.3
34,000
-5C4/1P

* NOx Standard in accordance with Part III, Chapter 2, § 2.3.2, c) (CAEP/4)

** Length (in) (From the fan case forward flange to the LP turbine case aft flange)

CFM56-7B SERIES
Pressure Compressor Engine Dimensions (in)
Bypass Overall Fan Turbine No. & TSFC Dry
Ratio Stages Certification
Variants Aircraft Thrust (lbf) ratio pressure Diameter Stages (HP Type of at Max. Weight
at Max. (Fan / LPC / D L (EASA)
(CR) ratio (T/O) (in) / LP) Combustors Power (lb)
Power HPC)

-7B18 Boeing 737-600 19,500 5.5 21.7 0.35

65 98

Boeing 737-600
-7B20 20,600 5.4 22.7 0.36
/ -700

Boeing 737-600
-7B22 22,700 5.3 24.6 0.36
/ -700

32.7 61’’ 1/3/9 1/4 1/A 5,216

Boeing 737-700
-7B24 24,200 5.3 26 0.37 Dec-96
/ -800 / -900

61 98.7

Boeing 737-700
-7B26 26,300 5.1 27.9 0.38
/ -800 / -900

Boeing737-800
-7B27 27,300 5.1 32.8
/ -900

CFM56-7B

88 Airline Economics: Aero Engine Yearbook 2018 www.airlineeconomics.co

 ENGINE DATA

CFM56-7B “E”
Maximum Continuous Thrust
Variants Aircraft Takeoff thrust (daN) Dry Weight (kg) Type Certification (EASA)
(daN)

CFM56-7B24E 737-700/800 10,765 10,142 Jul-10

CFM56-7B26E 737-800 11,699 11,521 Jul-10

CFM56-7B27E 737-900ER 12,143 11,521 2,395 Jul-10

CFM56-7B20E, CFM56-7B22E,
CFM56-7B22E/B1, CFM56-
7B24E/B1, CFM56-7B26E,
CFM56-7B26E/F, CFM56-7B26E/
737 9,163 to 12,143 8,630 to 11,521 Jul-10
B1, CFM56-7B26E/B2, CFM56-
7B26E/B2F, CFM56-7B27E/F,
CFM56-7B27E/B1, CFM56-
7B27E/B1F, CFM56-7B27E/B3

GP7200
Overall Fan
Maximum pressure Compressor Turbine Air Dry Thrust-
Thrust Bypass Diameter Length
Variants Aircraft Thrust ratio Diameter Blade Stages LP/ Stages Mass weight to-weight Combustor Configuration
(lbf) ratio (in) (in)
(lbf) at Max (in) (# of) HP LP/HP Flow (lbs) ratio
Power
5.197
(assuming Low-
2,000 Two-spool
13,400 lbf 194 emissions
to high-bypass
GP7200 A380 74,735 81,500 8.8:1 43.9 117 24 5/9 6/2 14,797 weight of 124 spinner single
2,600 turbofan
engine and to flange annular
lb/s engine
70,000 lbf of combustor
thrust)

CFM56-7B

GP7200

www.airlineeconomics.co Airline Economics: Aero Engine Yearbook 2018 89

ENGINE DATA

LEAP 1A
Max Std. Compressor Engine Dimensions (in)
Take-Off Max. Bypass Overall Turbine
Day S.L. Stages Max. Weight
Variants Aircraft Thrust Continuous ratio pressure Stages Max. Max. Combustor Configuration
Thrust (Fan/LP/ rpm (lb) Length
(lbf) Thrust (lbf) (CR) ratio (T/O) (HP/LP) Width Height
(lb) HP)

-1A23 24,010 23,510

Second
-1A24 24,010 24,000 generation
LP : Twin-
40:1 (50:1, Twin-spool,
A320neo 24,500- 3894, 99.7- 93.2– Annular,
11:1 Top-of- 1/3/10 2/7 2,990 131 high bypass
Family 32,900 HP : 100.1 93.0 in Pre-Mixing
Climb) turbofan
19391 Swirler
-1A26 27,120 26,680 Combustor
(TAPS II)

-1A30, 32,
32,160 31,690
33, 35

LEAP 1B
Fan Engine Dimensions (in)
Overall Compres-
Take-Off Max. Bypass Di- Turbine
pressure sor Stages Max. Weight No. & Type of Configura-
Variants Aircraft Thrust Continuous ratio am- Stages Max. Max. Combustor
ratio (Fan/LP/ rpm (lb) Length Combustors tion
(lbf) Thrust (lbf) (CR) eter (HP/LP) Width Height
(T/O) HP)
(in)

-1B25 26,790 25,960

Second
generation
40:1 LP : Twin- Twin-spool,
Boeing
(50:1, 4586, Annular, high
-1B27 737 MAX 28,040 27,270 9:1 69.4 1/3/10 2/7 2780 123.9 95.3 88.8 1/A
Top-of- HP : Pre-Mixing bypass
Family
Climb) 20171 Swirler turbofan
Combustor
(TAPS II)
-1B28 29,320 28,690

LEAP 1C
Take- Pressure Compres- Turbine Engine Dimensions (in) No. &
Max. Bypass Fan
Off Ratio sor Stages Stages Max. Weight Type of
Variants Aircraft Continuous ratio Diameter Max. Max. Combustor Configuration
Thrust at Max. (Fan/LP/ (HP/ rpm (lb) Length Combus-
Thrust (lbf) (CR) (in) Width Height
(lbf) Power HP) LP) tors

Second
-1C28 29,220 28,760 generation
40:1 LP : Twin-
Twin-spool,
COMAC (50:1, 3894, Annular,
11:1 77 1/3/10 2/7 3,153 177.4 104.7 106.9 1/A high bypass
C919 Top of HP : Pre-Mixing
turbofan
Climb) 19391 Swirler
-1C30 30,830 29,950 Combustor
(TAPS II)

LEAP 1B LEAP 1C
LEAP 1A

90 Airline Economics: Aero Engine Yearbook 2018 www.airlineeconomics.co

 ENGINE DATA

CF34
Maxi- Flat rate ambient tem-
Maximum Normal Overall
mum Thrust perature °C (°F) Compres-
Takeoff Takeoff Bypass pressure Dry Thrust/ Maximum
Conti- at sea sor Stages LPT/ Length Certification
Variants Aircraft Thrust Thrust ratio ratio Weight Weight Diameter
nous level Maximum Maximum (Fan/Boost- HPT (in) (EASA)
(5min) (5min) (CR) at Max (lb) Ratio (in)
Thrust (lb) Takeoff Continuous er/HP)
(lb) (lb) Power
(lb)

CL600/
CF34-3 CL850 9,220 6.2:1 21:1 1,670 5.52:1 103 49
CRJ200
1/14

CRJ200
CF34-3B1
CRJ440

Bombardier
CRJ700 13,790- 2,400-
CF34-8C 5:1 28-28.5:1 5.7-6:1 128 52
CRJ900 14,500 2,450
CRJ1000
4/2

CF34-8C5 CRJ-700/900 14510 13360 13680 30 (86.0) 30 (86.0) 2,780 Oct-02

1/10

CF34-8E E-170/175 14,500 5:1 28:5:1 2,600 5.6:1 121 53.3

CF34-8E5 E170/175 14510 13420 13520 30 (86.0) 30 (86.0) 3,147.60 Oct-02

Comac
CF34-10A 17,640 5:1 29:1 3,700 5.1:1 90 57
ARJ21

E-190/195
CF34-10E Lineage 20,360 5.4:1 29:1 1/3/9 4/1 3,700 5.2:1 145 57
1000

CF34-
E190/195 18820 17390 17040 35 (95) 25 (77) Mar-06
10E6

CF34

www.airlineeconomics.co Airline Economics: Aero Engine Yearbook 2018 91

ENGINE DATA

CF6-80
Overall
Flat Rated Fan/Com- Dry
pressure
Variants Aircraft Thrust (lb) Tempera- pressor LPT/HPT Weight Length (in) Maximum Diameter (in)
ratio at Max
ture (°F) Stages (lb)
Power

A310-200/-300
/ A300-600 /
CF6-80C2,
A310-300 / VC25
CF6-80C2B6F, 52,200 - 9,480-
/ B747-200/-300 27.1-31.8
CF6-80C2B7F, 61,960 9,860
/-400 / B767-
CF6-80C2B8F
200/-300/-400 /
MD11
86 - 111 1/4/14 5/2 168 106-114

65,800-
CF6-80E1 A330/-200/-300 32.4-34.8 11,225
69,800

CF6-80

92 Airline Economics: Aero Engine Yearbook 2018 www.airlineeconomics.co

 ENGINE DATA

CF6-80
Compressor Engine Dimensions (in)
Max Std. Day Pressure Ratio Turbine Stages TSFC at Max. No. & Type of
Variants Aircraft Stages (Fan / Weight (lb)
S.L. Thrust (lb) at Max. Power (HP / LP) Power D L Combustors
LPC / HPC)

CF6-80A 48,000 27.3 0.344

B767-200 8,770 98.1
CF6-80A2 28.4 1/3/14 2/4 0.349 157
50,000
CF6-80A3 A310 28.4 0.357 8,760 105.7

CF6-80C2A1 A300-600 59,000 30.4 0.334

CF6-80C2A2 A310-200 / -300 53,500 27.8 0.317

9,480
A300-600 /
CF6-80C2A3 60,200 31.1 0.329
MD-11

CF6-80C2A5 A300-600ER 61,300 31.5 0.34

CF6-80C2A5F A300-600F 31.5 0.34 9,850

A310-200 Adv,
CF6-80C2A8 59,000 30.4 0.344 9,480
-300

CF6-80C2B1 747-300 56,700 29.3 0.323

9,670
CF6-80C2B2 767-200 52,500 27.1 0.318 106 1/A

CF6-80C2B2F 767-300ER 52,700 27.4 0.307 9,790

1/4/14 2/5 168
767-300 /
CF6-80C2B4 0.326 9,670
-300ER / -200ER

CF6-80C2B4F 767-300ER 57,900 29.9 0.317

CF6-80C2B1F 747-400 0.316

9,790
CF6-80C2B5F 747-400 31.1 0.323
60,800
CF6-80C2B6 767-300ER 31.4 0.334

CF6-80C2D1F MD-11 61,960 32.4 0.322 9,634

CF6-80E1A2 A330 65,800 33.7 0.332 11,162

CF6-80E1A3 A330-200 72000 11,225 114

CF6-80E1A4 A330 68,100 40 0.338 11.162

www.airlineeconomics.co Airline Economics: Aero Engine Yearbook 2018 93

ENGINE DATA

GE90
Max Overall
Com- Maxi-
Std. pres- Turbine Thrust- Maxi- Maxi-
Bypass Fan Di- pressor LP HP mum
Takeoff Day sure Stages Weight to- Weight Length mum mum
Variants Aircraft ratio ameter Stages Rotor Rotor Diam- Type
Thrust S.L. ratio (LP/ (lb) Weight (lb) (in) Width Height
(CR) (in) (Fan/ Speed Speed eter
Thrust at Max HP) Ratio (in) (in)
LP/HP) (in)
(lb) Power

GE90-76B 777-200 76,900

777-200
GE90-85B / -200ER 84,700
/ -300
1/3/10 16,644
777-200
GE90-90B / -200ER 90,000
/ -300
6/2
777-200 2,261.5 Dual
GE90-94B 97,300 94,000 8.4 - 9 40:1 123 17,400 5.59 286.9 134 152.4 155.6
/ 777-300 RPM rotor,
axial
777-200 9,332 flow,
/ 777- RPM high
2,355
GE90-115B 300ER 115,540 115,000 9 42:1 128 1/4/9 19,316 5.98 18,260 286.67 135 148.38 154.56 bypass
RPM
/ 777 ratio
Freighter turbofan

GENX
Com-
Bypass Overall Air Mass
Max Std. pressor Base No. &
ratio pressure Flow
Takeoff Day S.L. Fan Diam- Stages Weight Engine Type of Combus-
Variants Aircraft (takeoff / ratio LPT/HPT (takeoff, Control Bearings
Thrust Thrust eter (in) (Fan/ (lb) Length Combus- tor
top-of- at Max lbs-mass/
(lb) Booster/ (in) tors
climb) Power sec)
HPC)

-1B58 787-8 56,300

-1B64 787-8 61,500

12,822 1/A
-1B67 787-9
111.1 1/4/10 7/2 184.7
-1B70 787-8 69,800 66,500 9.0 / 8.3 43.8 / 53.3 2559
SAC/TAPS FADEC III 2B+4R
-1B74/75 787-9 74,100 8.8 / 8.1 46.3 / 55.4 2624

-1B76 787-10 76,100 8.8/ 7.9 47.4 / 58.1 2658

-2B67B 747-8 66,500 8.0/7.4 44.7 / 52.4 104.7 1/3/10 6/2 2297
169.7
747-8 /
-2B67 58,500 12,400
787-8

GENX-1B/P2 BR700
Maximum
Takeoff
Variants Aircraft Continuous Variants Aircraft Takeoff Rating Dry Weight (kg) Overall Length (in)
Thrust
Thrust
GEnx-1B67/
787-8/9 308,7 kN 273,6 kN BR700-715A1-30 Boeing 717-200 18,500 lbf 2085 147
P2G01

GEnx BR715
GE90

94 Airline Economics: Aero Engine Yearbook 2018 www.airlineeconomics.co

 ENGINE DATA

V2500
Com- Engine Dimen-
No. &
Takeoff Temp. at Overall Climb pressor Turbine TSFC sions (in)
Bypass Fan Diam- Weight Type of
Variants Aircraft Rating flat rating pressure Pressure Stages Stages at Max. Certified
ratio (CR) eter (in) (lb) Combus-
SLS (lbf) (C°) ratio (T/O) Ratio (Fan/LP/ (LP/HP) Power D L tors
HP)
Airbus
V2500-A1 24,800 30 5.4 35.8 63 1/3/10 0.355 4,942 Jun-88
A319
Airbus
V2522-A5 23,040 55 4.9 32.8 0.355 5,074 Apr-96
A319
Airbus
V2527E-A5 24,800 46 4.8 32.8 Aug-95
A320
Airbus
V2530-A5 29,900 30 4.6 26.9–33.4 35.2 5/2 0.355 5,074 67.5 126 1/A Nov-92
A321
63.5 1/4/10
Airbus
V2533-A5 31,600 30 4.5 35.2 0.355 5,074 Aug-96
A321
Boeing
V2525-D5 25,000 30 4.8 34.5 0.347 5,074 Nov-92
MD-90
Boeing
V2528-D5 28,600 30 4.7 35.2 0.347 5,074 Nov-92
MD-90

AE 3007
Static thrust (lbf) Fan
Take-Off Maxi- Overall
Bypass Com- Weight Thrust to Length Width Height Combus-
Variants Aircraft Thrust Takeoff, mum pressure Diameter Blade (# LPT/HPT
ratio pressor (lb) weight (in) (in) (in) tor
(Ibf) 5 min: continu- ratio (in) of)
ous:

AE 3007A 7580 6820

AE
3007A1/1
AE
3007A1/2 7580–
AE Embraer 9440
3007A1 ERJ 145
family/
AE 7,580– 1,657–
Embraer 4.6-5.6
3007A1/3 9,440 1,681
Legacy
AE single-
600/ 8917 7339
3007A1E stage
Embraer
5 23 38.5 24 fan and 3/2 115.08 46.14 55.7 Annular
AE R-99
8338 6820 14-stage
3007A1P axial HP
AE
9440 8097
3007A2
AE
7201 -
3007A3

AE 3007C 6442 6442

AE Cessna 6,442– 1,614–

6764 6764 4-4.3
3007C1 Citation X 7,042 1,641
AE
7042 7042
3007C2

AE3007

V2500

www.airlineeconomics.co Airline Economics: Aero Engine Yearbook 2018 95

ENGINE DATA

PW JT8D (1980)
Overall pressure Temp. at flat rating
Variants Aircraft Takeoff thrust (lb) Bypass ratio (CR) Fan Diameter (in) Fan Pressure Ratio Length (in)
ratio (T/O) (F°)

Aerospatiale SE210
Caravelle Super 10
thru 12
Boeing 727
Boeing 737-100/-
JT8D-7/7A
200
JT8D-9/9A
Boeing MD-80
JT8D-15/15Ab
McDonnell Douglas
JT8D-17/17A Fan tip diameter: 120.0-154.1In
DC-9 14,000– 21,700 1.0-1.7 15.8-21.0 77–84 1.92-2.21
JT8D-17R/17AR 39.9–49.2 in (flange to flange)
Dassault-Mercure
JT8D-209
Breguet
JT8D-217/217A/C
Joint Surveillance
JT8D-219
Target And Radar
System (JSTARS)
Kawasaki C-1
Super 27 Re-
engining Program

PW JT8D
Compressor Engine Dimensions (in)
Max Std. Day Pressure Ratio Turbine Stages TSFC at Max. No. & Type of
Variants Aircraft Stages (Fan/ Weight (lb)
S.L. Thrust (lb) at Max. Power (LP/HP) Power D L Combustors
LP/HP)

JT8D-209 MD-82 19,250 17.4 0.501 4,435

JT8D-217 /
MD-82 / -87 18.6 0.51 4,470
-217A
20,850 1/6/7 3/1 49.2 154.1 9/C
MD-82 / -83
JT8D-217C / -87 / -88 / 0.5
Super 27
21 4,515
MD-82 / -83
JT8D-219 / -87 / -88 / 21,700 0.519
Super 28

PW JT9D
Compressor Engine Dimensions (in)
Max Std. Day S.L. Pressure Ratio at Turbine Stages No. & Type of
Variants Aircraft Stages (Fan/ Weight (lb)
Thrust (lb) Max. Power (LP/HP) D L Combustors
LP/HP)

JT9D-7R4D1 A310 / 767 48,000 23.4 1/3/11 4/2 8,905 93.4 132.7 1/A

PW2000
Compressor Engine Dimensions (in)
Max Std. Day Pressure Ratio Turbine Stages TSFC at Max. No. & Type of
Variants Aircraft Stages (Fan/ Weight (lb)
S.L. Thrust (lb) at Max. Power (LP/HP) Power D L Combustors
LP/HP)

PW2037 757-200 38,250 27 0.342

7,300 84.8
PW2040 757-200 / -200F 41,700 28 1/4/12 5/2 0.352 146.8 1/A

PW2043 757-300 43,734 27.6 7,100 84.5

JT8D

96 Airline Economics: Aero Engine Yearbook 2018 www.airlineeconomics.co

 ENGINE DATA

PW4000-94
Overall pressure Temp. at flat rating
Variants Aircraft Takeoff thrust (lb) Bypass ratio (CR) Fan Diameter (in) Fan Pressure Ratio Length (in)
ratio (T/O) (F°)
PW4056/62/62A Boeing 747
PW4052/56/60/62/62A Boeing 767
flange to flange:
PW4460/62 MD-11 52,000– 62,000 4.8–5.0 27.5–32.3 86 or 92 94 (fan tip diameter) 1.65–1.80
132.7
PW4158 Airbus A300
PW4152/56A Airbus A310

PW4000-94
Compressor Engine Dimensions (in)
Turbine Stages Max Std. Day No. & Type of TSFC at Max. Pressure Ratio
Variants Aircraft Stages (Fan/ Weight (lb)
(LP/HP) S.L. Thrust (lb) Combustors Power at Max. Power D L
LP/HP)
767-200 / 200ER
PW4050 50,000 0.348 26.3
/ 300
767-300 / 300ER
PW4056 56,750 0.359 29.7
/ 747-400
767-300ER / 400
PW4060 1/4/11 4/2 60,000 1/A 0.365 31.2 97 132.7 9,213
/ 747-400

PW4062 767-300ER 62,000 0.365 32.3

PW4052 767-200 / 200ER 52,200 0.351 27.3

PW4000-100
Overall pressure Temp. at flat rating
Variants Aircraft Takeoff thrust (lb) Bypass ratio (CR) Fan Diameter (in) Fan Pressure Ratio Length (in)
ratio (T/O) (F°)
Airbus A330-300
PW4164/68/68A-1D
Airbus A330-200 flange to flange:
PW4168A 64,500 – 70,000 5.0 32.0–35.4 86°F 100 1.75
Airbus A330- 163.1
PW4170
200/300

PW4000-112
Compressor Stages Turbine Stages (LP/
Variants Aircraft Thrust (lb) Dry Weight (lb) Length (in) Diameter (in)
(Fan/LP/HP) HP)
PW4074/74D/77/77D Boeing 777-200
1/6/11 (PW4098 15,095 (PW4098:
PW4084D/90/90-3 Boeing 777-200ER 74,000 – 98,000 7/2 190.4 112
1/7/11) 16,260)
PW4090/90-3 Boeing 777-300

PW4000-100

PW4000-94

PW4000-112

www.airlineeconomics.co Airline Economics: Aero Engine Yearbook 2018 97

ENGINE DATA

PW1100G-JM (2016)
Flat Rating Ambient Maximum
Sea Level Static Thrust (lbf)
Temperature Compressor Turbine Nominal Radial
Dry Weight Overall Certification
Variants Aircraft Stages LP/ Stages LP/ Diameter Projection
Take-Off (5 Maximum Maximum (lb) * Length (in) (EASA)
Take-Off HP HP (fan case) (at drain
min) Continuous Continuous mass)

PW1133G-JM

PW1133GA-
33,110 32,780 30°C/86°F
JM

PW1130G-JM

PW1127G-JM All models

Flange to
except for
PW1127GA- flange:
27,075 26,345 47°C/117°F PW1431G-JM:
JM 129.285
30 October
A320neo 25°C/77°F 3/8 3/2 6300 +/- 0.051 Fan 87.566 50.150
PW1127G1- 2015.
spinner to
JM PW1431G-JM:
aft flange:
10 August
133.898
PW1124G-JM 2017

PW1124G1-
24,240 24,035 51°C/123°F
JM

PW1122G-JM

PW1431G-JM 31,572 31,068 30°C/86°F

* Note: Dry Weight For all models except for the PW1431G-JM the above dry weight value applies to the basic engine and include the IAE, LLC supplied engine build-up component (EBU1). EBU1
components include: Low Oil Pressure Switch, Core NacelleTemperature Sensor, Gearbox Breather Tube, Engine Air Turbine Starter, starter attachment hardware and seals to gearbox, duct from starter
to Starter Air Valve, Starter Air Valve, electrical harnesses, Mass Fuel Flow Meter, environmental control system Intermediate Pressure Check Valve. The PW1431G-JM engine weight is defined as the dry
weight of the basic engine with standard equipment only.

PW1000G FAMILY (2016)

Fan Fan Case Thrust-
Static Bypass Compres- Service
Variants Aircraft Diameter Turbine Length (in) Diameter Weight (lb) to-Weight Combustor
Thrust Ratio Blade (# of) sor Entry
(in) (in) Ratio

24,000–
PW1100G A320neo 12.5:1 3.85 – 5.26 Jan-16
35,000 lbf
81 20 133.898 87.566 6300
28,000– Axial flow,
PW1400G Irkut MC-21 5.01 2019
31,000 lbf 1 geared
fan, 3 stage
Bombardier 19,000– LPC, 8 stage
PW1500G 12:1 HPC 4.12 – 5.08 15-Jul-16
C-Series 23,300 lbf Axial flow, Talon-X
73 2-stage HP, 125.4 79 4800 Lean-Burn
Embraer 3-stage LP Combustor
17,000–
PW1900G E-Jet E2 4.35 – 4.96 2018
23,000 lbf
Family
18
Embraer
15,000– Axial flow,
PW1700G E-Jet E2 2021
17,000 lbf 1 geared
Family
9:1 56 fan, 2 stage
Mitsubishi LPC, 8 stage
PW1200G 15,000 lbf HPC 2020
Regional Jet

PW1100G

98 Airline Economics: Aero Engine Yearbook 2018 www.airlineeconomics.co

 ENGINE DATA

RB211-524 (1988)
Compressor Turbine Engine Dimensions (in)
Rating Bypass ratio Fan
Variants Aircraft Stages (fan / Stages (LP/ Weight (lb) Combustor Certification
[Thrust (lb)] (CR) Diameter (in) D L
IPC / HPC) IP/LP)

RB211-524G 747-400 58,000 Mar-89

Annular 18
747-400 / burners
RB211-524H 60,600 Jun-89
767-300
4.1-4.3 : 1 86.3 1/7/6 3/1/1 9,499 86.3 125
RB211-524G-T 747-400 (F) 58,000 May-97
Annular 24
747-400 (F) / burners
RB211-524H-T 60,600 May-97
767-300

RB211-535
Compressor Stages Turbine Stages (LP/
Variants Aircraft Rating [Thrust (lb)] Bypass ratio (CR) Fan Diameter (in) Combustor Certification
(fan / IPC / HPC) IP/LP)
Annular 24 burners,
RB211-535E4 757-200/300 40,100 4.3 : 1 74.1 1984
Phase V
Annular 24 burners,
RB211-535E4B 757-200/300 43,100 4.3 : 1 74.1 1/6/6 3/1/1 1989
Phase V
Annular 24 burners,
RB211-535E4C 757-300 44,800 4.3 : 1 74.1 2001
Phase V

TAY
Maximum Compressor
Takeoff Dry Weight Overall Maximum
Variants Aircraft Continous Stages (Fan/ LPT/HPT Control System Combustor Certification
Rating (kg) Length (in) Diameter (in)
Rating IPC/HPC)

Tay 611-8 61,61 kN 55,25 kN 1476 Sep-87

Boeing 727-
100 QF
Tay 620-15 Fokker 70 61,61 kN 59,94 kN 1501 Jun-86
Fokker 100 Hydomechanical tubo-annular
Gulfstream IV Control System combustion
Tay 650-15 67,17 kN 62,28 kN 1/3/12 3/2 1595 94.76 70.71 Jun-88
Gulfstream chamber with
G350/G400/ 10 flame tubes
Tay 651-54 G450 68,50 kN 62,28 kN 1628 Mar-92
Gulfstream
X-54 FADEC Control
Tay 611-8C 61,61 kN 55,25 kN 1538 Dec-02
System

RB211-524G

RB211-535E4

www.airlineeconomics.co Airline Economics: Aero Engine Yearbook 2018 99

ENGINE DATA

TRENT 1000 (2011)

Standard Maximum
Bypass ratio Fan Diam- Maximum
Variants Aircraft Ratings (lbs LP System IP System HP System Dry Engine Length (in) Combustor Certification
(CR) eter (in) Radius (in)
of Thrust) weight (kg)
Trent 1000 67,000 for
787-8 2011
Package B 787-8 (G)
Without SB
67,000 for
72‐G319:
Trent 1000 787-8 (G)
787-8 / 787-9 5936 With 2014
Package C 74,000 for
SB 72‐G319: Annular
787-9 (J) 20 WCFB, 6 8 stage IPC, 1 6 stage HPC,
>10 : 1 112 6033 Combustor
stage LPT stage IPT 1 stage HPT
67,000 for 18 burners
187.8 74.8
787-8 (G)
Trent 1000 787-8 / 787-9 74,000 for
2015
TEN / 787-10 787-9 (J)
74,000 for
787-10 (J)
Take-off
1 stage LPC, 6 8 stage IPC, 1 6 stage HPC,
Trent 1000-J3 787-8/9 thrust: 6120 Jul-16
stage LPT stage IPT 1 stage HPT
78,129lbf

TRENT 500 (2002)

Compressor Engine Dimensions (in)
Standard Turbine
Bypass ratio Fan Diameter Stages (fan
Variants Aircraft Ratings (lbs Stages (LP Weight (lb) Combustor Certification
(CR) (in) / booster / D L
of Thrust) / HP)
HPC)

Trent 553 A340-500 53,000 Annular Dec-00

7.5 - 7.6 : 1 97.4 1/-/6 5/1 10,400 97.4 154 combustor 20
A340-500 / burners
Trent 556 56,000 Dec-00
A340-600

TRENT 700 (1995)

Variants Aircraft Ratings Fan Diameter (in) LP System IP System HP System Combustor Certification
67,500 flat rated ISA
Trent 768 A330-300 97.4 1994
+15°C
72,000 flat rated ISA
Trent 772 A330-300 97.4 1994
+15°C
A330 200(F) / 72,000 flat rated ISA 26 Ti WCFB, 4 Stage 8 stage IPC, 1 stage 6 stage HPC, 1 stage Annular combustor
Trent 772B 97.4 1998
A330-300 +22°C LPT IPT HPT 24 burners
A330 200(F) / 72,000 flat rated ISA
Trent 772B EP 97.4 2009 (EIS)
A330-300 +22°C
72,000 flat rated ISA
Trent 772C A330-300 97.4 2007
+22°C

Trent 1000

Trent 500

Trent 700

100 Airline Economics: Aero Engine Yearbook 2018 www.airlineeconomics.co

 ENGINE DATA

TRENT 800 (1996)

Pressure
Bypass ratio Fan Diameter
Variants Aircraft Ratings Ratio at Max. LP System IP System HP System Weight (lb) Combustor Certification
(CR) (in)
Power

Trent 875 777-200 / -300 74,500 6.2 : 1 34.9 110 Jan-95

777-200 / 777-
Trent 877 77,200 6.2 : 1 35.9 110 Jan-95
200ER

777-200 / Annular
26 WCFB, 5 8 stage IPC, 1 6 stage HPC, 1
Trent 884 777-200ER / 85,950 6.2 : 1 38.8 110 13,100 combustor 24 Jan-95
stages LPT stage IPT stage HPT
777-300 burners

777-200 / 777-
Trent 892/892B 91,600 6.2 : 1 40.8 110 Apr-97
200ER

Trent 895 777-200ER 95,000 6.2 : 1 41.6 110 Jun-99

TRENT 900 (2007)

Variants Aircraft Ratings Bypass ratio (CR) Fan Diameter (in) LP System IP System HP System Combustor Certification

Trent 900 70,000-77,000

Annular
24 WCFB, 5 stage 8 stage IPC, 1 6 stage HPC, 1
Trent 970 A380-800 70,000 8.7-8.5 : 1 116 combustor 20 Oct-04
LPT stage IPT stage HPT
burners
Trent 972 72,000

TRENT 7000 (2017)

Variants Aircraft Ratings Bypass ratio (CR) Fan Diameter (in) LP System IP System HP System Combustor Certification

Trent 7000-68 A330-800/900 68,000 2017

Annular
20 WCFB, 6 Stage 8 stage IPC, 1 6 stage HPC, 1
>10 : 1 112 combustor 18
LPT stage IPT stage HPT
burners
Trent 7000-72 A330-800/900 72,000 2017

TRENT XWB (2014)

Pressure Fan Engine Dimensions (in)
Bypass ratio
Variants Aircraft Ratings Ratio at Diameter LP System IP System HP System Combustor Weight (lb)
(CR) D L
Max. Power (in)

Trent XWB-84 A350-900 84,000 9.3:1

Annular
22 WCFB, 6 8 stage IPC, 2 6 stage HPC,
52 118 combustor 16,043 118 205.4
stage LPT stage IPT 1 stage HPT
20 burners
Trent XWB-97 A350-1000 97,000 9:1

Trent 800 Trent 900

Trent 7000 Trent XWB

www.airlineeconomics.co Airline Economics: Aero Engine Yearbook 2018 101

DATA

ENGINE VALUES AS OF 1ST JUNE 2016

Mature Half-Life CMV Mature Engine Trading Value Deviation From Half-Life Medium Term Lease
OEM Engine Aircraft New CMV Trading Conditions & Comments
(ISTAT) Trends & short term changes CMV Rates

Market values strong at present. Shortage

GE CF34-3B1 CRJ-200 n/a $1.170m $1.280m $0.110m $0.029m
of good lease engines.

Strong OEM control, LLP life has limited

RR ERJ-145 ER AE3007-A1 n/a $0.700m $0.700m - $0.020m
value due to high scrap rate

Good competition for available engines

GE CF34-8C5 CRJ-700/900 $5.280m $2.760m $2.760m - $0.045m
with strong trading band.

Engine deals tend to be for newer engines

GE CF34-8E5 E170/175 $5.850m $3.300m n/a - $0.045m
or for lease.
Some deals for used or freshly overhauled
GE CF34-10E6 E190/195 $7.800m $5.200m n/a - engines. Spare engine utility has increase $0.060m
from 2017.
Fleet exits, aircraft value and engine value
RR Tay 650-15 Fokker 100 n/a $0.900m $0.880m -$0.020m $0.022m
reductions.

Demand remains for a now concentrated

PW JT8D-219 MD-83/88 n/a $0.600m $0.600m - $0.020m
fleet.

RR BR715A B717-200 n/a $2.650m $2.650m - Strong OEM control, very few movements $0.042m

CFM CFM56-3B1 737 classics n/a $0.500m $0.500m - Assumes well documented engines. $0.025m

CFM CFM56-3B2 737 classics n/a $0.600m $0.600m - Assumes well documented engines. $0.030m

The best condition engines will be mar-

CFM56-3C1
CFM 737 classics n/a $0.950m $0.950m - keted around US$1.5m. Southwest Airlines $0.035m
- 23k
exit has not had a major impact.
Few engine trades at thrust level. Thrust
CFM CFM56-7B22 737-700 n/a $3.540m $3.540m $0.000m $0.047m
conversion common.

Engines showing strong market values.

CFM CFM56-7B24 737-700/800 n/a $4.180m $4.300m $0.120m $0.060m
Increase in spare engine utility.

Engines showing strong market values.

CFM CFM56-7B26 737-800 n/a $4.790m $4.950m $0.160m $0.068m
Increase in spare engine utility.

Still very new so engines are trading in

CFM CFM56-7B24E 737-700/800 $10.000m $6.520m n/a - $0.060m
new/good condition or on lease

Still very new so engines are trading in

CFM CFM56-7B26E 737-800 $10.900m $7.410m n/a - $0.070m
new/good condition or on lease

Still very new so engines are trading in

CFM CFM56-7B27E 737-900ER $11.250m $7.730m n/a - $0.080m
new/good condition or on lease

CFM CFM56-5B5/P A319-100 n/a $3.600m $3.600m - Typically trading in mid-life condition $0.052m

Engines lease rates remain strong.

IAE V2527-A5 A320-200 n/a $5.080m $5.080m - Shortages of good engines and slow shop $0.080m
turn times.

CFM CFM56-5B4/P A320-200 n/a $4.870m $4.870m - Typically trading in mid-life condition $0.063m

Engines lease rates remain strong.

IAE V2527-A5 Select A320-200 $9.800m $5.910m n/a - Shortages of good engines and slow shop $0.088m
turn times.
CFM56-5B4/3 Still very new so engines are trading in
CFM A320-200 $10.500m $6.800m n/a - $0.075m
PIP new/good condition or on lease

CFM CFM56-5B3/P A321-200 n/a $5.420m $5.420m - Typically trading in mid-life condition $0.070m

Engines lease rates remain strong.

IAE V2533-A5 A321-200 n/a $5.940m $5.940m - Shortages of good engines and slow shop $0.095m
turn times.

102 Airline Economics: Aero Engine Yearbook 2018 www.airlineeconomics.co

 DATA

ENGINE VALUES AS OF 1ST JUNE 2016

Mature Half-Life CMV Mature Engine Trading Value Deviation From Half-Life Medium Term Lease
OEM Engine Aircraft New CMV Trading Conditions & Comments
(ISTAT) Trends & short term changes CMV Rates

CFM56-5B3/3 Still very new so engines are trading in

CFM A321-200 $11.200m $7.460m n/a - $0.080m
PIP new/good condition or on lease
Engines lease rates remain strong.
IAE V2533-A5 Select A321-200 $11.060m $7.060m n/a - Shortages of good engines and slow shop $0.105m
turn times.
Good shop visit induction rates - healthy
RR RB211-535E4 B757-200 n/a $3.100m $3.100m - $0.050m
market for this dependeable engine.

Very limited market. Only eight active

PW PW4152 A310-300 n/a $1.160m $1.160m - $0.030m
aircraft with this engine variant.

Evidently stronger values when there are

GE CF6-80C2A5 A300-600R n/a $2.150m $2.150m - $0.045m
shortages of good engines.

Bare engines fresh from shop visit can

GE CF6-80C2B6F B767-300ER $5.800m $2.590m $2.590m - $0.055m
achieve US$4m+.

Half-life engines will trade in the mid-2's.

PW PW4060 B767-300ER n/a $2.400m $2.400m - $0.042m
Similar traits to the CF6 equivalent.

GEnx-1B67/ Strong OEM domination, some new trades,

GE 787-8/9 $24.300m $14.270m n/a - $0.200m
P2G01 spare shortage pushing rates up.

RR Trent 1000-J3 787-8/9 $28.000m $18.600m n/a - Limited trading, strong OEM domination. $0.190m

A330- Spare engine fleet performs at almost

GE CF6-80E1A3 $18.400m $9.370m n/a - $0.135m
200/300 100% utility.

A330-
RR Trent 772B-60EP $17.010m $8.570m n/a - Limited trading, strong OEM domination $0.120m
200/300

A330- Limited trading - soft market for earlier

PW PW4170A $11.500m $6.800m n/a - $0.110m
200/300 PW4000-100 variants.

All inclusive lease rates. The most desirable

CFM CFM56-5C4/P A340-300 n/a $1.700m $1.800m - $0.040m
of the -5C family. Boutique market players.
Strong OEM domination, limited trading.
RR Trent 895 B777-200ER n/a $8.200m n/a - Trading for lower thrust variants shows a $0.170m
value gulf.
OEM dominated with some new indepen-
PW PW4090 B777-200ER n/a $6.500m $6.100m -$0.400m dents. Engine has a high cost base. Some $0.150m
engine trading in the market.
Strong OEM control with good spare
GE GE90-94B B777-200ER n/a $7.800m $7.800m - engine utility. Preference for higher thrust $0.145m
engines.
Evidently stronger values when there are
GE CF6-80C2D1F MD-11F n/a $1.700m $2.000m $0.300m shortages of good engines. Not many $0.045m
advertised.
A340- Strong OEM domination, limited trading.
RR Trent 556-61 n/a $3.550m n/a - $0.110m
500/600 High % of host aircraft parked.

Limited trading, strong OEM domination,

GE GE90-115BL B777-300ER $35.400m $22.480m n/a - $0.220m
trades becoming more frequent

Values have shown some short-term

PW PW4056 B747-400 n/a $1.800m $1.600m -$0.200m $0.030m
increases.

Some recent demand for shop visits. Fleet

RR RB211-524T B747-400 n/a $1.950m $1.950m - $0.025m
longevity dependent on few operators.

Engines fresh from shop visit can achieve

GE CF6-80C2B1F B747-400 n/a $2.140m $2.140m - $0.040m
US$3.5m.

RR Trent 970 A380-800 $24.700m $14.900m n/a - Limited trading, strong OEM domination $0.170m

Engines have entered independent lessor

EA GP7200 A380-800 $18.300m $10.500m n/a - portfolios. Backlog remains small with $0.140m
unlikely further orders.

www.airlineeconomics.co Airline Economics: Aero Engine Yearbook 2018 103

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