High prices are continuing to be paid for older A320 and B737NG family members as a means of securing installed engines but there exists a risk that the demand for such engines will dissipate more quickly than buyers are expecting. The market value for an older B737-800 with CFM56-7B26 engines built in the late 1990s approximates $9 million. The normal assumption is that an aircraft of this vintage would be in the equivalent of half life. In reality, the aircraft will have only some 20-30 percent life remaining. The second heavy maintenance visit may be imminent and with utilization of some 3,000 hours per annum and an hour to cycle ratio of 1.5:1, the aircraft and engines will have accumulated 60,000 hours and 40,000 cycles. The life limited parts (LLPs) will therefore have already been replaced once and be due to be replaced again in the near future. An overhaul of the engine will also likely be needed. In a lesser condition, this suggests that such an ageing aircraft should attract a price of nearer $4 million or less ensuring that the parting out agent can make a profit. However, this is not proving to be the case as there continues to be high demand for the CFM56. This is generating such demand that even aircraft with run out engines, or those with minimal time remaining on the LLPs, are being acquired for prices much higher than the calculated "green time" suggests. Older B737-800s with mid time engines can therefore be sold for $12-14 million instead of the expected $8-10 million and run out aircraft for in excess of $5 million.
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