The International Bureau of Aviation’s intelligence experts have discovered that the base values of new-generation narrowbody engines have enlarged in reaction to cost raises following price stability throughout the coronavirus. Leap-1A26’s base value was $9.36 million in 2019 and $11.9 million in 2023. The base value of the Leap-1B27/CB2/28 grew from $10.53m in 2019 to $13.098m in 2023. For both 2019 and 2023, the base value to market share ratio is the same.
The prices of the CFM Leap and Pratt & Whitney GTF engines have been enhanced this year to reflect rising stack costs and shop visit expenses. In a webinar, Jamie Davey, manager of commercial engines at IBA, claimed that there is a healthy market for both of these engines, with the Leap engine that powers the A320neo currently holding a slight advantage with a market share of 55%. He claims that the Leap-1B, the only engine available for the Boeing 737 Max, is outperforming the expectations of operators.
Airlines like Ryanair said that they had planned to reach fuel burn savings of 16%, but they acquired more than that. So, Ryanair is currently quite satisfied with its engine alternatives. As IBA noted, while still under the Leap-1A, the P&W1100G is in strong demand.
The P&W Advantage engine update will be the one to keep an eye on in the upcoming year. It was supposed to launch in 2023, but now it’s planning to do so in 2024, and the advantage update should offer some significance for fuel burn. Its interchangeability is yet another important merit. The new engines’ first round of shop visits won’t begin until close to the end of the decade, but Davey brings up some rumors in the industry about time-on-wing problems in comparison to the older engines.
Whether or not the on-wing performance surpasses that of the previous generation of engines, the field needs to take into account whether the fuel burn advantages offset the time-on-wing issues as these engines develop further. IBA notes that leasing rates for A320ceo engines are behind and that current-generation engines are recovering more slowly than earlier engine versions.
The popular CFM56-7B engine’s lease prices, which were $73,000 per month in 2019 and are currently $72,000 in 2023, have almost fully recovered to the levels they had before the coronavirus. The CFM56-7B installed in 737NGs is still dependable, the time on-wing performance has exceeded operators’ plans, and the lease rates have been favorable. This is partly attributable to the North American market, which was capable of instant rebounding.
According to Davey, the AD (airworthiness directive) published last year is the reason why the base values and market value of the V2500 engine, which powers the A320ceo, are still quite robust. The AD caused Pratt and Whitney to force a large number of engines into the shop, which in turn led to a brief rise in values and lease rates, especially for SelectOne engines.
Davey is curious to watch how the demand for postponed shop visits on current engines develops over the coming years. There will be a surge in demand, and we expect that maintenance repair and overhaul aviation services will be under pressure as they attempt to accommodate the passage of these narrow-body engines through their facility.
The aviation industry, including its super challenging sectors like aircraft parts for sale, Boeing parts for sale, surplus aircraft parts for sale, aircraft engine overhaul, aircraft leasing companies, airbus parts for sale, aircraft consignment inventory, air charter logistics, and AOG air freight, is also ready to participate in the game of development by beating the pressure in the coming years to prove itself in front of the world.
