SAMPLE Engine Values Book Issue: 21 – February 2021 Driving actionable insight

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SAMPLE COPY ContentsContents

CFM International International Aero Engine Rolls-Royce CFM56-3 V2500-A5 AE3007 CFM56-5A RB211-524 CFM56-5B RB211-535 SAMPLE COPY CFM56-5C RB183 Tay ContentsCFM56-7B Trent 500 CFM-LEAP Trent 700 CFMGeneral International Electric InternationalHoneywell Aero Engine Rolls-RoyceTrent 800 CFM56-3CF34 V2500-A5ALF502 AE3007Trent 900 CFM56-5ACF6-80C RB211-524Trent 1000 CFM56-5BCF6-80E RB211-535Trent 7000 CFM56-5CGE90 RB183Trent XWB Tay CFM56-7BGEnx TrentBR175 500 CFM-LEAP Trent 700 GeneralEngine Alliance Electric HoneywellPratt & Whitney TrentPratt &800 Whitney Canada CF34GP7200 ALF502JT8D-200 TrentPW100 900 CF6-80C PW2000 Trent 1000 CF6-80E PW4000-94 Trent 7000 GE90 PW4000-100 Trent XWB GEnx PW4000-112 BR175 PW1000G Engine Alliance Pratt & Whitney Pratt & Whitney Canada GP7200 JT8D-200 PW100 PW2000 PW4000-94 SAMPLE PW4000-100 PW4000-112 PW1000G

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Sample charts

Worldwide Market Share - Total Installed Population Total Installed Population CFM International 27,156 40% CFM International 14,482 21% General Electric Rolls-Royce 8,575 13% International Aero Engines 6,220 9% Rolls-Royce Pratt & Whitney Canada 5,184 8% Inter na tiona l Aero E ng ine s Pratt & Whitney 5,598 8% Pratt & Whitney Canada Honeywell 380 1% Pratt & Whitney Engine Alliance 516 1% Honeywell PowerJet 358 1% Engine Alliance Total 68,469 100%

Regional Marketshare Regional Jet Engine Marketshare General Electric 6,492 43% Pratt & Whintey Canada 5,184 34% General Electric Rolls-Royce 2,600 17% Honeywell 380 3% Pratt & Whitney Canada Powerjet 358 2% Rolls-Royce Pratt & Whitney 84 1% Honeywell Powerj et Total 15,098 100% Pratt & Whitney SAMPLE Narrow-Body Engine Marketshare Narrow-Body Engine Marketshare CFM International 26,752 71% International Aero Engines 6,220 17% Pratt & Whitney 3,404 9% CFM International Rolls-Royce 1,226 3% Inter na tiona l Aero E ng ine s Pratt & Whitney Total 37,602 100% Rolls-Royce

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Wide-Body Engine Marketshare Wide-Body Engine Marketshare General Electric 7,990 51% Rolls-Royce 4,749 30% Pratt & Whitney 2,110 13% General Electric CFM International 404 3% Rolls-Royce Engine Alliance 516 3% Pratt & Whitney CFM International Total 15,769 100% Engine Alliance Engine Values Book – Issue: 21 – February 2021

Rolls-Royce Trent 900 Description: The fourth generation in the Trent family, the Trent 900 program, was launched in 2001 to A380 aircraft, two of which have been retired and scheduled for disassembly while two have entered power the A380 and is the leading engine on the aircraft type. The engine is scaled up 10% from the storage and one has been leased to wet-leasing operator, Hi Fly. In February 2019, following months of Trent 500 and features the same three-shaft architecture as the other members of the Trent family. It speculation, cancelled the A380 programme. Emirates, who placed an order for 20 aircraft with features a swept fan, 3-D aerodynamics throughout the compressor and turbine sections, and contra- an option for a further 16 in a year earlier and had struggled to reach an agreement for the engines rotation of the high pressure spool. Rolls-Royce claims that the Trent 900 engines generate only 40% with Rolls-Royce. This prompted the operator to switch orders from the A380 to the A330neo and Rolls-Royce Trent 900 ofRolls-Royce the CO2 per passenger Trent kilometre 900 of an average family car. A350 platforms, clearing the way for Airbus to cease production by 2021. Since the pandemic outbreak The Trent 900 made its maiden flight on 17th May 2004 on Airbus’ A340-300 testbed and achieved the market for A380 engines has worsened and as such the underlying Base value curves and Market values have experienced a dramatic reduction since last publication. Given the low utilisation rate of Description: The fourth generation in the Trent family, the Trent 900 program, was launched in 2001 to powerengineDescription the A380 certification and: The is fourth the leading in generation October engine in2004. on the the Trent aircraftThe family,Trent type. the900 The Trent enteredengine 900 is program, scaledservice up was with10% launched froma thrust the in Trentrating 2001 500 toof power and70,000 features the A380 the and same is thethree-shaft leading architectureengine on the as aircraft the other type. members The engine of the is scaledTrent family. up 10% It from features the Trenta swept 500 fan, and 3-D features the same three-shaft architecture as the other members of the Trent family. It features a swept fan, 3-D Description: The fourth generation in the Trent family, the Trent 900 program, was launched in 2001 to power the A380 and is the leading engine on the aircraft type. The engine is scaled up 10% from the Trent 500 and features the same three-shaft architecture as the other members of the Trent family. It features a swept fan, 3-D aerodynamics throughout the compressor and turbine sections, and contra-rotation of the high pressure spool.poundsaerodynamics Rolls-Royce although throughout claims it is that certificated the compressorTrent 900 to enginesup and to turbine 80,000generate sections, pounds.only 40% and of Thecontra-rotation the Trent CO2 per900 passenger ofengine the high kilometrepowered pressure ofthe spool. an averagefirst Rolls-Royce family car.these claims engines,that the Trent spare 900 demand engines generateis set to only remain 40% lowof the for CO2 the per remaining passenger kilometrelife of the of fleet an average and familywith operators car. aerodynamics throughout the compressor and turbine sections, and contra-rotation of the high pressure spool. Rolls-Royce claims that the Trent 900 engines generate only 40% of the CO2 per passenger kilometre of an average family car. The Trent 900 made its maiden flight on 17th May 2004 on Airbus' A340-300 testbed and achieved engine certificationThe Trent in900 October made its 2004. maiden The flight Trent on 900 17th entered May 2004service on with Airbus' a thrust A340-300 rating testbed of 70,000 and pounds achieved although engine itcertification is certificated in Octoberto up to 2004.80,000 The pounds. Trent 900The Trententered 900 service engine with powered a thrust the rating first scheduled of 70,000 servicepounds of although a Singapore it is certificatedAirlines' to up to 80,000 pounds. The Trent 900 engine powered the first scheduled service of a Singapore Airlines' scheduledThe Trent 900 service made ofits amaiden Singapore flight onAirlines’ 17th May Airbus 2004 A380 on Airbus' from A340-300 Changi Airport,testbed and Singapore achieved engineto London certification in Octobermoving 2004. away The from Trent the 900 aircraft entered servicesooner with than a thrust expected rating the of 70,000 availability pounds of although engines it is is set certificated to increase to up in to the 80,000 pounds. The Trent 900 engine powered the first scheduled service of a Singapore Airlines' from Changi Airport, Singapore to London Heathrow on 18th March 2008. In 2018, Singapore AirlinesAirbus returned A380 from their Changi first fiveAirport, Trent Singapore 900 powered to London A380 aircraft, Heathrow two on of 18th which March have 2008. been retiredIn 2018, and Singapore scheduled Airlines for disassembly returned their while first two five have Trent entered 900 powered storage and A380 one aircraft, has been two leased of which to wet-leasing have been operator,retired and Hi scheduled Fly. In February for disassembly while two have entered storage and one has been leased to wet-leasing operator, Hi Fly. In February HeathrowAirbus A380 on from 18th Changi March Airport, 2008. Singapore In 2018, to Singapore London Heathrow Airlines on returned 18th March their 2008. first In 2018,five TrentSingapore 900 Airlines powered returned near their future.first five Trent 900 powered A380 aircraft, two of which have been retired and scheduled for disassembly while two have entered storage and one has been leased to wet-leasing operator, Hi Fly. In February 2019, following months of speculation, Airbus cancelled the A380 programme. Emirates, who placed an order2019, for 20 following aircraft with months an option of speculation, for a further Airbus 16 incancelled a year earlier the A380 and hadprogramme. struggled Emirates, to reach anwho agreement placed an for order the forengines 20 aircraft with Rolls-Royce. with an option This for prompted a further the 16 operatorin a year earlierto switch and orders had struggled from the to A380 reach to an the agreement A330neo forand the A350 engines with Rolls-Royce. This prompted the operator to switch orders from the A380 to the A330neo and A350 2019, following months of speculation, Airbus cancelled the A380 programme. Emirates, who placed an order for 20 aircraft with an option for a further 16 in a year earlier and had struggled to reach an agreement for the engines with Rolls-Royce. This prompted the operator to switch orders from the A380 to the A330neo and A350 platforms, clearing the way for Airbus to cease production by 2021. Since the pandemic outbreak the market forplatforms, A380 engines clearing has the worsened way for Airbusand as suchto cease the productionunderlying Baseby 2021. value Since curves the and pandemic Market valuesoutbreak have the experienced market for aA380 dramatic engines reduction has worsened since last and publication. as such the underlying Given the low Base utilisation value curves rate and of these Market engines, values sparehave experienceddemand is set a dramaticto reduction since last publication. Given the low utilisation rate of these engines, spare demand is set to platforms, clearing the way for Airbus to cease production by 2021. Since the pandemic outbreak the market for A380 engines has worsened and as such the underlying Base value curves and Market values have experienced a dramatic reduction since last publication. Given the low utilisation rate of these engines, spare demand is set to remain low for the remaining life of the fleet and with operators moving away from the aircraft sooner than expectedremain lowthe availabilityfor the remaining of engines life of is theset tofleet increase and with in the operators near future. moving away from the aircraft sooner than expected the availability of engines is set to increase in the near future. remain low for the remaining life of the fleet and with operators moving away from the aircraft sooner than expected the availability of engines is set to increase in the near future.

Current Market Value, Base Value, Typical Current Rental Rate (TCCR) & QEC Current Market Value, Base Value, Typical CurrentEngine Rental Maintenance Rate (TCCR) & Indicators QEC Engine Maintenance Indicators Current Market Value, Base Value, Typical Current Rental Rate (TCCR) & QEC Engine Maintenance Indicators Trent 970 Trent 970 Trent 970 Trent 970 Trent 970 Trent 970 Market Value (Dressed) $5,690,000 Market Value (Dressed) Life Limited Parts (LLP) Cost$5,690,000 $11,149,000 Life Limited Parts (LLP) Cost $11,149,000 Market Value (Dressed) $5,690,000 Life Limited Parts (LLP) Cost $11,149,000 Base Value (Dressed) $8,550,000 Base Value (Dressed) Average Cost of Overhaul $8,550,000 $8,125,000 Average Cost of Overhaul $8,125,000 Base Value (Dressed) $8,550,000 Average Cost of Overhaul $8,125,000 Typical Current Rental Rate $145,000 Typical Current Rental RateMean Between Overhauls (MTBO)$145,000 30,240 FH Mean Between Overhauls (MTBO) Values in US Dollars (millions)30,240 FH Values in US Dollars (millions) Typical Current Rental Rate $145,000 Mean Between Overhauls (MTBO) 30,240 FH Values in US Dollars (millions) QEC $600,000 QEC Fleet Average Fligth Hour/Cycle Ratio$600,000 8.8 FH/Cycles Fleet Average Fligth Hour/Cycle Ratio Annual inflation of 2.0%8.8 FH/Cyclesassumed Annual inflation of 2.0% assumed QEC $600,000 SAMPLEFleet Average Fligth Hour/Cycle Ratio 8.8 FH/Cycles Annual inflation of 2.0% assumed Engine Type Engine Model CMV 2021 2022 2023 2024 Engine2025 Type Engine2026 Model 2027CMV 20282021 20292022 20302023 20312024 20322025 20332026 2034 2027 2035 2028 2036 2029 2037 20302038 20312039 20322040 20332041 2034 2035 2036 2037 2038 2039 2040 2041 Engine Type Engine Model CMV 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 Trent 900 Trent 970 $5.69 $8.55 $8.20 $7.82 $7.42 Trent$7.00 900 Trent$6.57 970 $6.13$5.69 $5.69$8.55 $5.25$8.20 $4.82$7.82 $4.40$7.42 $4.00$7.00 $3.61$6.57 $3.24$6.13 $2.89 $5.69 $2.56 $5.25 $2.97 $4.82$3.45 $4.40$4.03 $4.00$4.73 $3.61$4.20 $3.24 $2.89 $2.56 $2.97 $3.45 $4.03 $4.73 $4.20 Trent 900 Trent 970 $5.69 $8.55 $8.20 $7.82 $7.42 $7.00 $6.57 $6.13 $5.69 $5.25 $4.82 $4.40 $4.00 $3.61 $3.24 $2.89 $2.56 $2.97 $3.45 $4.03 $4.73 $4.20 Trent 900 Trent 972 $5.69 $8.55 $8.20 $7.82 $7.42 Trent$7.00 900 Trent$6.57 972 $6.13$5.69 $5.69$8.55 $5.25$8.20 $4.82$7.82 $4.40$7.42 $4.00$7.00 $3.61$6.57 $3.24$6.13 $2.89 $5.69 $2.56 $5.25 $2.97 $4.82$3.45 $4.40$4.03 $4.00$4.73 $3.61$4.20 $3.24 $2.89 $2.56 $2.97 $3.45 $4.03 $4.73 $4.20 Trent 900 Trent 972 $5.69 $8.55 $8.20 $7.82 $7.42 $7.00 $6.57 $6.13 $5.69 $5.25 $4.82 $4.40 $4.00 $3.61 $3.24 $2.89 $2.56 $2.97 $3.45 $4.03 $4.73 $4.20

Airworthiness Derivatives - Trent 900 Airworthiness Derivatives - Trent 900 Airworthiness Derivatives - Trent 900 Issuing Authority Issuing Authority DescripitionIssuing Authority Descripition EASA CAA DGAC FAA EASA CAA DGAC FAA Descripition EASA CAA DGAC FAA 2020-0041 Intermediate2020-0041 Pressure Compressor Rotor Shaft - Inspection Intermediate Pressure Compressor Rotor Shaft - Inspection 2020-0041 Intermediate Pressure Compressor Rotor Shaft - Inspection 2018-0199 2018-0199Oil Service Pipe Sealing Rings - Replacement Oil Service Pipe Sealing Rings - Replacement 2018-0199 Oil Service Pipe Sealing Rings - Replacement 2018-18-06 LPT Disc Seal Fins & Interstage Seals - Inspection/Replacement/Modification2018-18-06 LPT Disc Seal Fins & Interstage Seals - Inspection/Replacement/Modification 2018-18-06 LPT Disc Seal Fins & Interstage Seals - Inspection/Replacement/Modification 2017-08-10 LPT Exhaust Case & Support Assembly - Inspection/Replacement2017-08-10 LPT Exhaust Case & Support Assembly - Inspection/Replacement 2017-08-10 LPT Exhaust Case & Support Assembly - Inspection/Replacement 2017-08-11 Life Limit Reduction - Prevent Engine Failure 2017-08-11 Life Limit Reduction - Prevent Engine Failure 2017-08-11 Life Limit Reduction - Prevent Engine Failure 2015-02-20 IPC Rotor Shaft 2015-02-20 IPC Rotor Shaft 2015-02-20 IPC Rotor Shaft 2013-05-04 Inspection of the intermediate pressure compressor rear stub shaft (IPC RSS)2013-05-04 piston ring Inspection of the intermediate pressure compressor rear stub shaft (IPC RSS) piston ring 2013-05-04 Inspection of the intermediate pressure compressor rear stub shaft (IPC RSS) piston ring 2013-02-04 IP turbine seal fins and interstage seals inspection 2013-02-04 IP turbine seal fins and interstage seals inspection 2013-02-04 IP turbine seal fins and interstage seals inspection 2013-02-03 Replacement of the fuel oil exchanger 2013-02-03 Replacement of the fuel oil exchanger 2013-02-03 Replacement of the fuel oil exchanger 2012-12-03 IP turbine shaft rgid coupling splines inspection 2012-12-03 IP turbine shaft rgid coupling splines inspection 2012-12-03 IP turbine shaft rgid coupling splines inspection SAMPLE COPY SAMPLE COPY SAMPLE COPY

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Definitions and Assumptions ISTAT Definitions such as foreign object damage but it does include removals due to exhaust gas temperature (EGT) deterioration or LLP life expiry. All the data contained in this publication is in accordance with ISTAT definitions, which are included below. Basic Overhaul Cost is IBA’s estimated figure for an average workshop visit carried out under a “time & Base Value is IBA’s opinion of the underlying economic value of an engine in an open, unrestricted, materials” basis. This includes labour for teardown, inspection, repair costs, material replacement and stable market environment with a reasonable balance of supply and demand, and assumes full a degree of LLP replacement. consideration of its “highest, best use”. An engine’s Base Value is founded in the historical trend of In most cases, the Base Value of an engine assumes its physical condition is average for an engine of its values and in the projection of value trends and presumes an arm’s-length, cash transaction between type and age, and its maintenance time status is at mid-life, mid-time (or benefiting from an above- willing, able and knowledgeable parties, acting prudently, with an absence of duress and with a average maintenance status if it is new or nearly new, as the case may be). reasonable period of time available for marketing. Airworthiness Directive (AD) Market Value is IBA’s opinion of the most likely trading price that may be generated for an engine under Airworthiness Directives (ADs) have been included at the end of each section of the Engine Values the market circumstances that are perceived to exist at the time in question. Market Value assumes Book. Recurring ADs are noted with a bullet and key ADs are further noted by the use of bold, red that the engine is valued for its “highest, best use”, that the parties to the hypothetical sale transaction lettering. Key ADs, as defined by IBA, fall into one or more of the following categories: are willing, able, prudent and knowledgeable, under no unusual pressure for a prompt sale, and that ADs resulting from an uncontained failure the transaction would be negotiated in an open and unrestricted market on an arm’s-length basis, ADs that reduce the life of components, LLPs and primary components for cash or equivalent consideration, and given an adequate amount of time for effective exposure to ADs requiring a correction of operational problems prospective buyers. ADs requiring piece part inspection programs of LLPs and usually resulting in a restricted operational Quick Engine Change (QEC) kit is defined as a collection of components and accessories installed into a life and/or driving components out of the engine at shop level bare engine to reduce the time required for installation of the entire powerplant onto an aircraft. These key ADs are usually associated with high costs in terms of operational disruption, higher QEC kits can be categorised into three types: basic, neutral & full. A basic QEC includes all prime parts material investment, or higher shop visit rates with possible increases in cost of each shop visit. and accessories required for an engine test. A neutral QEC can be considered to comprise the basic kit Disclaimer plus sufficient specialist parts and accessories that will allow installation on an airframe but excludes IBA Group Limited (IBA) has prepared the enclosed Engine Values Book. The Engine Values Book is any items relating to a specific aircraft or application. A full QEC comprises the neutral kit plus those subject to the disclaimer below. items required for varying aircraft applications. In the case of basic and neutral, neither the thrust IBA has no present interest in the engines being appraised for the purpose of the Engine Values Book. reverser nor the nose cowl is included. Each engine type should be considered unique in its QEC At the date of the Engine Values Book, IBA does not anticipate acquiring any configuration and installation. subsequent interest in the engines. Unless otherwise stated, IBA has had no prior interest in the Values are shown as a range to bracket IBA’s view of neutral and full QEC SAMPLEkits and to reflect the engines. IBA’s appraisal of the engine is honestly held and the Engine Values Book shall be deemed different make-up of each kit as the components and accessories vary depending on the type of aircraft advisory only, with such advice being solely to the extent noted in the Engine Values Book. To the the engine will eventually power. fullest extent permitted by law, IBA assumes no responsibility or legal liability for any action taken, or Typical Current Rental Rate (TCRR) is IBA’s opinion of the monthly lease rental as it relates to an arm’s length not taken, whether directly or indirectly by the Client or by any third party, with regard to the engines transaction between a willing lessor and a willing lessee for a single engine transaction. Values are shown as and the Client agrees that IBA shall bear no such responsibility or legal liability in respect of the same. a range to bracket IBA’s view of short-term (18 months) to long-term (5 years) duration of rental. To the fullest extent permitted by law, IBA, its associated companies, subsidiaries, directors, sub- contractors, agents and employees are not liable for any oversights, errors or omissions in relation to Maintenance Definitions the Engine Values Book. Life Limited Part (LLP) Cost refers to IBA’s opinion of the basic cost of all of the engine’s life-limited To the fullest extent permitted by law, in relation to the Engine Values Book, IBA shall bear no parts (LLPs), assuming all-new parts. responsibility for any interpretation applied, inference made or conclusion reached by the Client or any Mean Time Between Overhauls (MTBO) represents IBA’s opinion of the average time, in flight third party. hours, between major engine shop visits. This does not include unscheduled removals for reasons

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