Collateral Valuations reports in its November newsletter that engine values, even on current production aircraft, are holding up better than the aircraft they power.
It has long been known that engine values have superior performance to out-of-production aircraft. For example, Collateral Values notes in the newsletter that :the drop in value for a CFM56-3B2 from last year was about 20% versus the drop in value for a Boeing 737-300 which was 30%."
On the other than, "the IAE V2527-A5 engine saw an increase in value of 5% versus a drop in value of about 10% for the Airbus A320 which it supports," writes Gueric Dechavanne, vice president-Commercial Aviation Services. "In-production engines will typically increase in value over time. "This is due to the annual increases in new engine prices, overhaul costs, as well as life limited parts. Combined with the continuous demand for spare engines from the growing aircraft fleets, this will then translate into increases in value."
Oddball airplanes, such as the Airbus A318, for which there currently is a major glut of parked aircraft, also find more value in the engines and part-out than for the entire airplane. A two-year old A318 has already been parted out and CAO is aware of others in the pipeline to be parted out, with the engine value vs. airframe being a prime mover.
Source: Commercial Aviation Online
