Market Presence. The current market for the A340-600 has experienced a precipitous fall in recent years, but stability today is at scrap levels. The disposal of aircraft by existing operators continues but in a market that fails to generate any willing buyers. The proposed sale of multiple units at discounted prices has also contributed to the lower values. The market values for the A340-600 are now being dictated by any offer prices rather than actual sales data. Even the engines appear to be worth very little. The premium applied due to full life maintenance status is also being eroded particularly with respect to the engine Life Limited Parts (LLPs). While this has traditionally been an arithmetical exercise, it has become increasingly apparent that the extensive “green” time remaining on the engines cannot be fully utilized in view of the restricted time that the A340-600 is expected to be in service. Moreover, the market for individual LLPs, should the engine be parted out, is limited as existing operators cannibalize out of service aircraft to maintain those that remain in service. Rolls-Royce also has no interest in buying spare LLPs at list prices.
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