In a written statement, FL Technics says each company has its own strategy, but “We can sell outright, exchange, lease or rent—all options that would benefit both parties.”
It is against this creative transactional backdrop that parting out and pricing engage in ever-changing pas de deux, with competing companies in perpetual pursuit of in-demand parts. “That is why everyone who has all this money—whether it's equity or hedge—is going after the same assets, all those whole engines,” says Weinberg. The aim is to “get the 'gold' out of them.”
Just now 737 Next Generations are hot part-out plays. Avery says flightdeck displays and integrated drive generators (IDG) are both high-demand items. Although AJ Walter Aviation maintains large stocks of both, “If we had more we could find work for them.” He says manufacturer's list price for an IDG is in excess of $1 million. His company would offer them for $390,000-400,000.
Aside from Boeing 737NGs, Avery covets decade-old A320s, as well as A330s—asserting he “would probably give a kidney for a 777-200,” especially a late generation -200 or newer -300. Unrealistic? Not necessarily, not with the age of aircraft headed for disassembly decidedly younger now. “We're being offered 10-year-old narrowbodies on the market for part-out,” a situation Avery calls “shocking.”
Aircraft type demand is not uniform. It can be geographically dependant. FL Technics focuses on the Commonwealth of Independent States (CIS) and the Middle East, regions in which Boeing 737-300s, -400s and -500s still fly high, as do Bombardier CRJ100s and -200s. To that end, “The market for CFM56-3/5As is still very hot, as a lot of operators continue to fly classic Western fleets,” says Filip Stanisic, FL Technics' engine management department chief.
Literally and figuratively, high-pressure turbine (HPT) parts are hottest. Stanisic says FL Technics pegs the market in the CIS for CFM56-family powerplants at “roughly $250–300 million” annually, 5% of the global share. Across the MRO world, the focus is squarely on HPT parts.
Stanisic says HPT aftermarket blades are selling for $2,500-7,000 “depending on condition, technical specification [and] number of previous repairs.” HPT vanes vary more widely, with aftermarket prices ranging from $2,400-15,000, predicated on the same factors.
Life-limited parts (LLPs) also command a significant portion of the spend. “Pricing is dependent on the number of cycles remaining [on] the parts,” says Stanisic, as well as the “manufacturing standards” of the company that produced them. “Subject to the individual part number and available cycles, LLPs may cost anywhere from $15,000-300,000 each.”
In IAA's market, HPT and LLP components also are coveted. CFM56-5A and -5B core components are still sought after, as they are for the CFM56-7B. Also in demand are HPT parts for IAE's V2500-A5s, CF6-80C2s and even Rolls-Royce RB211-535s. Weinberg calls these “common engines [for which] everyone would love to have certain parts.”