ISTAT Jetrader - Autumn 2020 - 45

indicator that maintenance is due,
will be slower to sell, and the need
for a heavy repair can often result
in scrapping.
From a part-out perspective,
landing gear generate the major value
differential across the three main
A320ceo models. A320/A321 gears are
seeing higher demand, as the market
has had a preference for highercapacity passenger variants as well as
the freighter conversion market. Fully
overhauled A320 or A321 landing gear
can fetch US$1 million and upwards
with only US$750k for an A319. There
is also considerable appetite for below
half-life landing gear for all A320ceo
family models as lessors and airlines
look to avoid overhaul costs that can be
as much as US$400k. We see similar
trends across the 737NG family.
High demand, regularly repaired
items listed on the OCCM (on-condition/
condition-monitored) and hard-time
rotable component listings include
wheels and brakes, THSAs (trim
horizontal spoiler actuators), air cycle
machines, navigation equipment,
avionic displays, slides, windscreens

of an airframe and the marketability
and value of its parts, and, indeed,
Magellan has evaluated post-2008 build
A320ceo assets for acquisition with
an identifiable degree of commonality
with A320neo aircraft not present in
earlier models.
When assessing part-out values,
incomplete records will likely have
a significant negative impact on
the value of an asset. The engines
command much of the value but are
also most demanding in terms of
back-to-birth traceability. Without
adequate documentation, engine LLPs,
for instance, may see Market Values
impacted by up to 40%. Supporting
engine documentation should
consist of:
*	 Full non-incident/incidentaccident clearance statement
for the history of the part
*	 Complete history of on/off
events with corresponding LLP
statuses
*	 Oil statements
*	 Non-PMA/DER statements
LLPs, HPT blades and, in some
cases, fan blades will also need

of contention among airlines, MROs,
lessors and aftermarket providers, as
a universally accepted standardized
list of required paperwork does not
exist, but there have been steps in the
right direction through the efforts of
IATA and the Aviation Working Group in
recent years.
As we begin to emerge from the
mass groundings forced by COVID-19,
some aircraft whose previous "highest
and best use" was as a flyer are
expected to be offered for part-out.
With capacity expected to remain below
historical trends for some time, it is
almost inevitable that there will be
downward value pressure on aircraft
components in the long term. However,
in the near term, it is reasonable
to assume that high-cost elements
such as engines, APUs and landing
gears will hold values reasonably well
as owners will likely look to avoid
heavy maintenance expenditure. The
narrowbody sector can be expected to
see a pickup in spare parts demand
sooner than the twin-aisle segment,
given the size of the fleet and the wide
and diverse network of operators and

A319 with V2524-A5 engines - 2005 Vintage
Nomenclature

Fair Market Value ($ms)

Comments

OCCM/HT Listing

1.60

Average Mid-2000s Specification

Nacelle Items

0.90

V2500 - Strong underlying demand

Landing Gear

0.30

2015 Overhaul - mid-time

APU

0.20

APS 3200 Assume Half-Life

Engines

6.10

V2524-A5 Baseline Model. Approx 2 years
green-time remaining.

Total

9.10

and cockpit seats. The specification
and upgrade status of a part can have
significant bearing on the overall value
of components in the OCCM and HT
listings. The installed part numbers
in areas such as engine LRUs and
avionics are key examples. There is
also often correlation between the age

complete back-to-birth traceability and
may also be required for landing gear,
APU, trim horizontal stabilizer actuator
(THSA), ram air turbine and other
high-value components. Indeed, the
tangible value and meaningfulness of
documentation for airframe and engine
components has long been a bone

MROs. It goes back to the underlying
trend that A320ceo and 737NG
airframe and engine components will
exhibit the strongest value retention
on the spare parts side, despite the
advent of the 737 MAX returning to
service and the A320neo delivering in
greater numbers.
Jetrader

* AUTUMN 2020 * 4 5



ISTAT Jetrader - Autumn 2020

Table of Contents for the Digital Edition of ISTAT Jetrader - Autumn 2020

ISTAT Jetrader - Autumn 2020 - Intro
ISTAT Jetrader - Autumn 2020 - Cover1
ISTAT Jetrader - Autumn 2020 - Cover2
ISTAT Jetrader - Autumn 2020 - 1
ISTAT Jetrader - Autumn 2020 - 2
ISTAT Jetrader - Autumn 2020 - 3
ISTAT Jetrader - Autumn 2020 - 4
ISTAT Jetrader - Autumn 2020 - 5
ISTAT Jetrader - Autumn 2020 - 6
ISTAT Jetrader - Autumn 2020 - 7
ISTAT Jetrader - Autumn 2020 - 8
ISTAT Jetrader - Autumn 2020 - 9
ISTAT Jetrader - Autumn 2020 - 10
ISTAT Jetrader - Autumn 2020 - 11
ISTAT Jetrader - Autumn 2020 - 12
ISTAT Jetrader - Autumn 2020 - 13
ISTAT Jetrader - Autumn 2020 - 14
ISTAT Jetrader - Autumn 2020 - 15
ISTAT Jetrader - Autumn 2020 - 16
ISTAT Jetrader - Autumn 2020 - 17
ISTAT Jetrader - Autumn 2020 - 18
ISTAT Jetrader - Autumn 2020 - 19
ISTAT Jetrader - Autumn 2020 - 20
ISTAT Jetrader - Autumn 2020 - 21
ISTAT Jetrader - Autumn 2020 - 22
ISTAT Jetrader - Autumn 2020 - 23
ISTAT Jetrader - Autumn 2020 - 24
ISTAT Jetrader - Autumn 2020 - 25
ISTAT Jetrader - Autumn 2020 - 26
ISTAT Jetrader - Autumn 2020 - 27
ISTAT Jetrader - Autumn 2020 - 28
ISTAT Jetrader - Autumn 2020 - 29
ISTAT Jetrader - Autumn 2020 - 30
ISTAT Jetrader - Autumn 2020 - 31
ISTAT Jetrader - Autumn 2020 - 32
ISTAT Jetrader - Autumn 2020 - 33
ISTAT Jetrader - Autumn 2020 - 34
ISTAT Jetrader - Autumn 2020 - 35
ISTAT Jetrader - Autumn 2020 - 36
ISTAT Jetrader - Autumn 2020 - 37
ISTAT Jetrader - Autumn 2020 - 38
ISTAT Jetrader - Autumn 2020 - 39
ISTAT Jetrader - Autumn 2020 - 40
ISTAT Jetrader - Autumn 2020 - 41
ISTAT Jetrader - Autumn 2020 - 42
ISTAT Jetrader - Autumn 2020 - 43
ISTAT Jetrader - Autumn 2020 - 44
ISTAT Jetrader - Autumn 2020 - 45
ISTAT Jetrader - Autumn 2020 - 46
ISTAT Jetrader - Autumn 2020 - 47
ISTAT Jetrader - Autumn 2020 - 48
ISTAT Jetrader - Autumn 2020 - 49
ISTAT Jetrader - Autumn 2020 - 50
ISTAT Jetrader - Autumn 2020 - 51
ISTAT Jetrader - Autumn 2020 - 52
ISTAT Jetrader - Autumn 2020 - Cover3
ISTAT Jetrader - Autumn 2020 - Cover4
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