ISTAT Jetrader - Winter 2019 - 47

engines. Rolls-Royce has a 61% share
of the Boeing 757 engine market in
active, parked or in short- to mediumterm stored service. This includes the
freighter market, where the RB211-535
has approximately 68% market share
and 430 engines, according to ATDB.
aero. The RB211-535 also has greater
operator diversity at 58 versus 32 for
the PW2000, despite the PW2000
having the largest individual airline fleet
(Delta: 256 engines). The three largest
RB211-535 operators are FedEx (132
engines), United (122 engines) and
American (86 engines).
Thus far in 2019, RB211-535powered 757s continue to show
resilience in active service despite
the approximate 24-year average
fleet age. There are accelerated fleet
retirement plans rumored from the likes
of Icelandair, while American Airlines
has placed an order for the A321
XLR. Three aircraft are undergoing or
have completed airframe and engines
part-out. Elsewhere, there are two
757-200 undergoing freight conversion
at Chengdu Shuangliu where JetTran,
partnering with Precision Aircraft
Solutions' services, is completing
multiple freighter conversions for
airlines such as Spain's Swiftair. There
have been other sales and leases
including aircraft to Cyngus Airways,
Morningstar Air Express and Cabo
Verde Airlines.
The RB211-535 remains a very
capable engine. A mature RB211535 should exceed a commendable
20,000 hours on-wing. Presently,
the demand for RB211-535 engines
is resulting in shortages given 757
freighter conversions and continued
operations with both North American
and European legacy and European
charter carriers. These shortages are
being exacerbated by a high number of
shop visits and removals at the MRO
network for the RB211-535 driven by
Life Limited Part (LLP) expiry, engine
time expired, thermal degradation
related to on-wing time and fan case
corrosion. This throughput is expected

Half-Life
Engine
Variant

Lease
Rates

RB211535E4

$3.75m
$58-65k
/month
$3.95m

RB211535E4B

CMV

Future Base Values at 1.5% Inflation

CBV

2020

2021

2022

2023

2024

$3.60m

$3.51m

$3.38m

$3.22m

$3.01m

$2.77m

$3.80m

$3.70m

$3.57m

$3.40m

$3.18m

$2.93m

Engine Specification as per variant and relative thrust rating excluding
Quick Engine Change (QEC) kit accessories and stand.
Valuation as of August 2019
Maintenance Assumption Half-Life (50% LLP and Shop Visit Life Remaining).
ISTAT definitions applicable
Lease Rates - assumes 2-3-year lease

The total number of RB211-535 engines operating
during the third quarter of 2019 was around 900,
excluding spare engines.
to decrease slightly for the entirety
of 2019. Availability of engines could
hamper 757 freighter conversions
going forward.
Counterpoint Market Intelligence
recognizes that while the RB211535E4 and E4B may be mature assets,
fleet extensions and single-aisle

freighter demand have led to reduced
numbers of quality engines to acquire
or lease. Like other acclaimed engines,
such as the CF6-80C2B6F, values
and lease rates/terms have been
encouraging, and this not so new trend
appears set to continue at least in the
medium term. 

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ISTAT Jetrader - Winter 2019

Table of Contents for the Digital Edition of ISTAT Jetrader - Winter 2019
