AN OVERVIEW OF ENGINE VALUES AN OVERVIEW OF ENGINE VALUES Investing in Engines: London Roundtable 7 th April 2009 Investing in Engines: London Roundtable 7 th April 2009 The information contained in our databases and used in this presentation has been assembled from many sources, and whilst the utmost care has been taken to ensure accuracy, the information is supplied on the understanding that no legal liability whatsoever shall attach to Ascend, its subsidiaries, officers, or employees with respect to any error or omission that may have occurred.
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AN OVERVIEW OF ENGINE VALUES - Airfinance Journal do engine and aircraft values compare with age? ... overhaul intervals 0 5000 10000 15000 20000 25000 30000 0.8 1 1.2 1.4 1.6 1.8
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AN OVERVIEW OF ENGINE
VALUES
AN OVERVIEW OF ENGINE
VALUESInvesting in Engines: London Roundtable
7th
April 2009
Investing in Engines: London Roundtable
7th
April 2009
The information contained in our databases and used in this presentation has been assembled from many sources, and whilst the utmost care has been taken to ensure accuracy, the information is
supplied on the understanding that no legal liability whatsoever
shall attach to Ascend, its subsidiaries, officers, or employees with respect to any error or omission that may have occurred.
OVERVIEWENGINE VALUES VS. AIRCRAFT VALUES
ENGINE VALUE LIFE CYCLE
ENGINE VALUE BREAKDOWN
FACTORS AFFECTING MAINTENANCE
CHANGING & UPGRADING
IMPORTANT FACTORS FOR ENGINE FINANCIERS TO CONSIDER
HOW DO ENGINE VALUES DIFFER FROM AIRCRAFT VALUES?
Aircraft Values Engine Values
Build Year Matters
Maintenance Condition Matters
Value drops with time as soon as the aircraft rolls out of the factory
List price has very little effect on used aircraft value
Build Year does not matter
Maintenance condition accounts for 80-90% of engine value
Value can increase with time, driven by list price increases and LLP pricing
Values closely correlated to manufacturer list prices
HOW DOES ENGINE VALUE CHANGE OVER ITS LIFE CYCLE?
not to scale
HOW IS AN ENGINE’S VALUE BROKEN DOWN?
not to scale
HOW DO ENGINE AND AIRCRAFT VALUES COMPARE WITH AGE?
Comparison between two GE90-115B engines and a 2007 build Boeing 777-300ER –
both Half Life.
Future Base Values given in USD Millions under 2.5% inflation assumption.
The information contained in our databases and used in this presentation has been assembled from many sources, and whilst the utmost care has been taken to ensure accuracy, the information is
supplied on the understanding that no legal liability whatsoever shall attach to
Ascend, its subsidiaries, officers, or employees with respect to any error or omission that may have occurred.