What to Look for When Valuing an Aircraft Engine?

Aircraft engines are the heart of any airplane, often accounting for 30-50 per cent of an aircraft's total value.

- 

Sudip Sharma, Director, Safe Fly Aviation

Accurately valuing an engine is critical for buyers, sellers, financiers, and insurers in the aviation industry. A well-maintained engine can significantly boost an aircraft's marketability, while a poorly maintained one can reduce its value or deter buyers. This comprehensive guide explores the key factors to consider when assessing an aircraft engine's value, including engine specifications, maintenance history, Life-Limited Parts (LLPs), market trends, and operational environment. Interactive charts are included to help visualize these factors, making it easier to understand their impact.

WHY ENGINE VALUATION MATTERS

The engine is one of the most expensive components of an aircraft, and its condition directly impacts resale value, financing options, and insurance premiums. According to VREF, a leading aircraft valuation service, engine condition—verified through maintenance records, logbook reviews, and inspections—is central to determining an aircraft's market value. For example, a mid-time engine with significant hours remaining before its Time Between Overhaul (TBO) can add tens of thousands of dollars to an aircraft's price, while an engine nearing TBO may require costly maintenance, lowering its appeal.

This guide covers the critical factors influencing engine value, with detailed insights into LLPs and other technical aspects, supported by interactive charts for clarity.

KEY FACTORS IN VALUING AN AIRCRAFT ENGINE

1. Engine Type and Specifications

The type of engine—piston, turboprop, or jet—fundamentally affects its value due to differences in design, performance, and application. Each engine type has unique specifications that influence its market worth: