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Issue: 17 • April 2017Issue: 17 • April 2017Issue: 15 • May 2017

Engine Values Book

Table of Contents iEngine Value Methodology ivValue Definitions ivMaintenance Definitions vDisclaimer vi

Section i: Worldwide Distribution & Market Share i.1Manufacturer Market Share by Installed Engines i.2Manufacturer Market Share by Operators i.3Engine Type Market Share by Thrust Class i.4

Section 1: CFM International 1.1CFM56-3 1.2CFM56-5A 1.6CFM56-5B 1.10CFM56-5C 1.16CFM56-7B 1.20CFM-LEAP 1.25Airworthiness Directives 1.29

Section 2: Engine Alliance 2.1GP7000 2.2Airworthiness Directives 2.6

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Section 3: General Electric 3.1CF34 3.2CF6‐80C2 3.7CF6‐80E 3.11CF6‐50C, CF6‐50E & CF6‐80A 3.15GE90 3.16GEnx 3.20Airworthiness Directives 3.25

Section 4: Honeywell 4.1ALF502 & LF507 4.2Airworthiness Directives 4.6

Section 5: International Aero Engines 5.1V2500 5.2Airworthiness Directives 5.6

Section 6: Pratt & Whitney 6.1JT8D‐200 6.2PW2000 6.6PW4000‐94 6.10PW4000‐100 6.14PW4000‐112 6.18

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PW1000G 6.22Airworthiness Directives 6.26

Section 7: Rolls‐Royce 7.1AE3007 7.2RB211‐524 7.6RB211‐535 7.10Tay 7.14Trent 500 7.18Trent 700 7.22Trent 800 7.26Trent 900 7.30Trent 1000 7.34Trent XWB 7.38BR715 (Rolls‐Royce Deutschland) 7.42Airworthiness Directives 7.46

Section 8: Pratt & Whitney Canada 8.1PW100 8.2Airworthiness Directives 8.8

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Engine Valuation Methodology

The Engine Values Book has therefore been constructed around the following criteria:

Assumptions:

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(b) "standard / mid-time maintenance condition" (c) good / average physical condition (d) typical utilisation (e) standard / average specification

unless otherwise indicated.

Whilst the techniques used and the judgements made do not isolate every single influence and reduce it to a numerical value that impacts on the

overall model, it is our view that the complexity of a purely mathematical approach would produce values that were overly sensitive to minor

changes in the parameters feeding it. Consequently, IBA feels that, when making an assessment of engine value, there is still no substitute, for the

blend of market research and intelligence, mathematics, and judgement based on the experience of the appraiser in this highly dynamic market.

Scope: Engine variants associated with current production “modern technology western-built passenger and cargo aircraft” with an entry into

service date of post-1980 and with a minimum population of 200 engines and/or 100 delivered aircraft.

Method: Determination of values includes account of replacement price, age, market condition, depreciation based on resale history and useful

economic life. Engines are considered within the market segment to which they belong and compared with the competitor engines in the segment.

Engine values, rental rates and maintenance indicators are based on IBA’s own engine databases which have been built on information for various

engine types routinely gathered and stored as part of IBA’s daily business.

(a) current / balanced market condition with balance achieved at levels perceived appropriate for today’s market

Value Definitions

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Values are shown as a range to bracket IBA’s view of neutral and full QEC kits and to reflect the different make-up of each kit as the components and

accessories vary depending on the type of aircraft the engine will eventually power.

Typical Current Rental Rate (TCRR) is IBA’s opinion of the monthly lease rental as it relates to an arm’s length transaction between a willing lessor

and a willing lessee for a single engine transaction. Values are shown as a range to bracket IBA’s view of short-term (18 months) to long-term (5

years) duration of rental.

Market Value is IBA’s opinion of the most likely trading price that may be generated for an engine under the market circumstances that are

perceived to exist at the time in question. Market Value assumes that the engine is valued for its “highest, best use”, that the parties to the

hypothetical sale transaction are willing, able, prudent and knowledgeable, under no unusual pressure for a prompt sale, and that the transaction

would be negotiated in an open and unrestricted market on an arm's-length basis, for cash or equivalent consideration, and given an adequate

amount of time for effective exposure to prospective buyers.

In most cases, the Base Value of an engine assumes its physical condition is average for an engine of its type and age, and its maintenance time

status is at mid-life, mid-time (or benefiting from an above-average maintenance status if it is new or nearly new, as the case may be).

Quick Engine Change (QEC) kit is defined as a collection of components and accessories installed into a bare engine to reduce the time required for

installation of the entire powerplant onto an aircraft

Base Value is IBA’s opinion of the underlying economic value of an engine in an open, unrestricted, stable market environment with a reasonable

balance of supply and demand, and assumes full consideration of its "highest, best use". An engine’s Base Value is founded in the historical trend of

values and in the projection of value trends and presumes an arm's-length, cash transaction between willing, able and knowledgeable parties, acting

prudently, with an absence of duress and with a reasonable period of time available for marketing.

QEC kits can be categorised into three types: basic, neutral & full. A basic QEC includes all prime parts and accessories required for an engine test. A

neutral QEC can be considered to comprise the basic kit plus sufficient specialist parts and accessories that will allow installation on an airframe but

excludes any items relating to a specific aircraft or application. A full QEC comprises the neutral kit plus those items required for varying aircraft

applications. In the case of basic and neutral, neither the thrust reverser nor the nose cowl is included. Each engine type should be considered

unique in its QEC configuration and installation.

Maintenance Definitions

Airworthiness Directive (AD)

ADs resulting from an uncontained failure.

ADs that reduce the life of components, LLPs and primary components.

ADs requiring a correction of operational problems.

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Life Limited Part (LLP) Cost refers to IBA’s opinion of the basic cost of all of the engine’s life-limited parts (LLPs), assuming all-new parts.

Mean Time Between Overhauls (MTBO) represents IBA’s opinion of the average time, in flight hours, between major engine shop visits. This does

not include unscheduled removals for reasons such as foreign object damage but it does include removals due to exhaust gas temperature (EGT)

deterioration or LLP life expiry.

Airworthiness Directives (ADs) have been included at the end of each section of the Engine Values Book. Recurring ADs are noted

with a bullet and key ADs are further noted by the use of bold, red lettering. Key ADs, as defined by IBA, fall into one or more of the

following categories:

ADs requiring piece part inspection programs of LLPs and usually resulting in a restricted operational life and/or driving

components out of the engine at shop level.

These key ADs are usually associated with high costs in terms of operational disruption, higher material investment, or higher shop visit rates

with possible increases in cost of each shop visit.

Basic Overhaul Cost is IBA’s estimated figure for an average workshop visit carried out under a “time & materials” basis. This includes labour for

teardown, inspection, repair costs, material replacement and a degree of LLP replacement.

In most cases, the Base Value of an engine assumes its physical condition is average for an engine of its type and age, and its maintenance time

status is at mid-life, mid-time (or benefiting from an above-average maintenance status if it is new or nearly new, as the case may be).

Pratt & Whitney JT8D-200 Section 6:

Pratt & Whitney

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T: +44 (0) 1372 22 44 88 |F:+44 (0) 1372 22 44 89 | www.iba.aero 2017 EditionMember of ISTAT. UK CAA Approval No. UK.MG.0622 Copyright © 2017 IBA Group LimitedVAT No: 123 37 13 47 Registered in England Reg.No:2246507 All Rights Reserved

6.2

With the arrival of the latest generation of aircraft at the beginning of the 1980s, such as the MD-80 series, Pratt & Whitney realised that revisions to its existing range

of JT8D engines would be required to remain competitive. The core of the JT8D-9 was adopted with a new low pressure spool derived from the NASA JT8D-refan

program, to create the initial production version, the JT8D-209. Other versions of the Pratt & Whitney JT8D-200 would soon follow.

The new single-stage fan has a greater diameter than the earlier JT8Ds and rotates through a revised six-stage Low Pressure Compressor, resulting in improved

Operating Pressure Ratio. Other JT8D-200 improvements centred on the inlet vanes, High Pressure Compressor, combustion chamber, High Pressure Turbine, Low

Pressure Turbine, exhaust mixer, turbine exhaust case, accessory case and inlet case.

The first production variant, the -209, began flight testing in March 1977 on a YC-15 STOL transport aircraft, and was FAA certificated in June 1979. Standard rating was

18,500 pounds with entry into service with Swissair on its MD-81s in October 1980. The next development was the JT8D-217 rated at 20,000 pounds for the higher

gross weight MD-82, certificated in November 1980. Certificated in October 1981, the JT8D-217A retains the same take-off thrust up to 28.9ºC or 5,000 ft. The JT8D-

217C uses performance improvements from the -219 in order to reduce fuel consumption. The JT8D-219 is rated at 21,000 pounds and was certificated in February

1985. This engine may be fitted to any of the MD-80 aircraft. At cruise rating, a JT8D-217/A typically burns 0.736 lb/h/lb, the -217C burns 0.763 lb/h/lb and the -219 –

0.737 lb/h/lb.

The JT8D fleet has continued to diminish with an additional 86 engines taken out of operation in the year since our last publication. Operators such as American Airlines,

the former grandfather of the operational fleet, continue to modernise their fleet and as such will be completely phased out of the MD-80 market during the summer of

2018. This will be a sad day for aviation enthusiasts. Values are more or less in line with 2016’s values, though as they have more or less reached their floor, this is no

surprise. Engines continue to generate interest from operators particularly for green time operation.

Pratt & Whitney JT8D-200 Section 6:

Pratt & Whitney

Engines inService

JT8D-217 20,000 lbf 25.0°C 0.753 lb/h/lb MD-81, -82, -88 64 enginesJT8D-217A 20,000 lbf 25.0°C 0.753 lb/h/lb MD-81, -82 128 enginesJT8D-217C 20,000 lbf 28.9°C 0.736 lb/h/lb MD-81, -82, -83, -87, -88 414 enginesJT8D-219 21,000 lbf 28.9°C 0.737 lb/h/lb MD-82, -83, -87, -88 756 engines

* Specific Fuel Consumption (SFC) at cruise conditions

MD-88



6.3

Engine Variants Available

Variant Thrust Flat Rating SFC* Aircraft Type(s)

Airframe/Engine Combinations

Aircraft Manufacturer Aircraft EngineWorldwidePopulation

McDonnell Douglas

MD-81JT8D-217 7 aircraft

JT8D-217A 7 aircraft

MD-82

JT8D-217 26 aircraftJT8D-217A

MD-83JT8D-217C 14 aircraftJT8D-219 226 aircraft

JT8D-219 129 aircraft

58 aircraftJT8D-217C 163 aircraftJT8D-219 11 aircraft

MD-87JT8D-217C 29 aircraftJT8D-219 11 aircraft

Pratt & Whitney JT8D-200 Active = 768 Parked = 594

Total installed population Total operators of JT8D-200 engines

Africa 76 engines 5.6% Africa 21 operators 14.2%

Asia Pacific 70 engines 5.1% Asia Pacific 13 operators 8.8%

Europe & CIS 130 engines 9.5% Europe & CIS 33 operators 22.3%

Latin America 100 engines 7.3% Latin America 13 operators 8.8%

Middle East 94 engines 6.9% Middle East 10 operators 6.8%

North America 892 engines 65.5% North America 58 operators 39.2%

All amounts in US$ All amounts in US$



6.4

Section 6:

Pratt & Whitney

Worldwide Distribution of Installed Engine Population Worldwide Distribution of JT8D-200 Operators

1,362 engines 148 operators

Market Value Bare Engine $600,000 Life Limited Part (LLP) Cost $2,190,000

Current Market Value, Base Value,Engine Maintenance Indicators

Typical Current Rental Rate (TCRR) & QECJT8D-219 JT8D-219

QEC $80,000 Fleet Average Flight Hour/Cycle Ratio 2.0 FH/Cycle

Base Value Bare Engine $600,000 Average Cost of Overhaul $1,293,000

Typical Current Rental

Rate

Low $8,000 per month

High $25,000 per monthMean Time Between Overhauls (MTBO) 9,500 Flight Hours

Pratt & Whitney JT8D-200Current Market Value & Base Values

Values in US Dollars (millions)Annual inflation of 2.0% assumed

Type CMV 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

JT8D-217A 0.430 0.43 0.40 0.37 0.33 0.30 0.27 0.24 0.21 0.18 0.16 0.13

JT8D-217C 0.500 0.50 0.46 0.43 0.39 0.35 0.31 0.28 0.24 0.21 0.18 0.15

JT8D-219 0.600 0.60 0.56 0.51 0.46 0.42 0.37 0.33 0.29 0.25 0.22 0.19



Section 6:

Pratt & Whitney

6.5

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