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Values of Newer Engines Healthiest

December 15, 2014

Market forces can contain market pricing. The rise in engine spares for example makes it more attractive to cannibalize relatively young aircraft. Such high values for engines can be a temporary phenomenon as was so aptly demonstrated in the late 1990s when values of JT8Ds more than doubled due to a shortage. Pratt & Whitney failed to anticipate a recovery in the market and could not make spares fast enough as aircraft were put back into service and utilization increased, thereby increasing the need for spare engines.

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