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ENGINE YEARBOOK 2005
ENGINE YEARBOOK 2005
● Over 600 of the 2,000-plus inactive
aircraft fleet will return to service in
the next four to five years, with
many of the young aircraft parked
during the 2001-2002 industry crisis
returning to passenger service and
with more than 200 parked aircraft
being converted to freighters.
● Daily aircraft utilisation will be
nearly 10 per cent higher in 10
years’ time. This will occur for three
reasons: the expansion of high-
utilisation low-fare carriers; the
pressures they place on traditional
airlines to increase the economic
productivity of their major assets;
and the fact that many airlines are
now operating at relatively
depressed levels of utilisation.
Demand for engine overhaul
For the sake of this forecast, engine
overhaul costs includes the costs of all
major engine shop visits and the costs
of changing the life-limited parts
(LLPs). It excludes the costs of minor
shop visits, inventory costs,
unscheduled events, one-off campaigns
and engine upgrade programmes.
Using this definition, engine overhaul
is the largest segment of the commercial
MRO market, currently valued at $12.4
billion. The largest engine submarkets
are the CF6-80C2, CFM56-3 and
PW4000-94, the only ones with activity
exceeding $1 billion each. Pratt &
Whitney engines, despite the rapid
reduction of the venerable JT8D fleet,
generate the highest proportion of
overhaul demand — 29 per cent, due to
their still sizable installed base. CFMI,
GE and Rolls-Royce engines generate
26, 24 and 14 per cent of overhaul
demand respectively.
For the period 2003-2013,
AeroStrategy forecasts that demand will
increase at 6.3 per cent per annum. This
high rate of growth is driven by a
number of key factors:
● Fleet growth: AeroStrategy’s forecast
shows an underlying aircraft fleet
growth of 3.8 per cent per annum
and engine fleet growth of 3.4 per
cent. In particular, the spate of
aircraft deliveries in the late 1990s
will provide the impetus for a jump
of over 20 per cent in shop visits in
the near future, from about 8,400 in
2003 to almost 10,300 in 2005. The
start of this sharp increase in
activity is already being witnessed,
most particularly in the CF34 market
where GE and its service centres
have begun to spool up for a
‘tsunami’ wave of shop visits.
● Engine utilisation growth: the drive
by low-fare carriers and traditional
airlines alike to improve asset
productivity means that average
engine utilisation will grow at about
one per cent per annum. The
combined impact of fleet and
utilisation growth results in a 4.9
per cent per annum rise in engine
utilisation.
● Improved reliability: this engine
utilisation increase is offset by
improved engine reliability. The
average time between shop visits for
the entire engine fleet is set to
increase from 8,900 hours to 10,400
hours over the 10-year forecast
period. This results in the number
of shop visits showing a lower rate
of growth of 4.4 per cent per
annum.
● Increased shop visit cost: the
average shop visit cost for the fleet
In 2013,CFMI engines will
generate most engine overhaul
demand at 27.5 per cent,closely
followed by GE (26 per cent), Pratt
and Whitney (19 per cent) and
Rolls-Royce (16 per cent).
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