WHEN THE LARGEST BUYERS

OF AIRCRAFT ENGINES
DO THEIR CALCULATIONS
THEY ALWAYS GET
THE SAME ANSWER.

Calculating Engine
Maintenance
Acronyms

A/F Airframe
ATO Aircraft Take Offs
D&C Delays & Cancellations
DMC Direct Maintenance Cost
ECO Engine Cost Ownership
EGT Exhaust Gas Temperature
EMO Engine Management Opimization ®
IFSD In Flight Shut-Downs
LLP Life Limited Parts
LRU Line Replaceable Unit
NPV Net Present Value
Acronyms

OATL Outside Air Temperature Limit

SV Shop Visit
SVR Shop Visit Rate
SVC Shop Visit Cost
T/O Take Off
TOC Total Operating Cost
TOW Take Off Weight
USG US Gallons
VSV Variable Stator Vanes
W/S Work Scope
 Life Limited Parts
CFM56-5B/-7B Time on Wing in Engine Flight Hours

1200 5B/7B Fleet w/ 2+ SVs

5B/7B Fleet w/ 1 SV
1000 5B/7B Fleet w/ 0 SVs
Number of Engines

800 Total
TotalNo.
No.of
ofEngines
Engines––10,516
10,516
600
400
200
0
0 4 8 12 16 20 24 28 32 36 40 44
SOURCE: CFM Marketing
Engine Hours Since New (x1000) Data thru AUG ‘09

70% of the Fleet Has Not Had a Shop Visit…

1,220 Engines Over 20,000 Hours Without a Shop Visit
CFM56 Spare Engine Requirement

One Additional Spare Engine

Spare Engine Requirement
Required for a 20 A/C Fleet
20
CFM56
Competition
15

10

0
10 20 30 40 50 60 70 80 90 100
Fleet Size (# of A/C)

Assumptions; 20A/C, 2 Hr FL,

3,300 Hr Util, 8% discount rate,

$7M Advantage for CFM

3% escalation, 15 yr NPV, spare
eng. Price = $9.3M (’08$),
delivered in year 5
Engine DMC Breakdown

THE
THE COST
COST TO
TO KEEP
KEEP AND
AND RESTORE
RESTORE ENGINE
ENGINE
SERVICEABILITY
SERVICEABILITY CAN
CAN BE
BE SPLIT
SPLIT BETWEEN:
BETWEEN:

Line Maintenance cost

Shop maintenance cost

Engine DMC Breakdown ( cont’d )

LINE MAINTENANCE :

Line Labor :
Inspection
Troubleshooting
Replacement of Line Replaceable Units ( LRU’s )
Test

Line Material :
Consumable parts (items which must be scrapped at every
maintenance action )

Repair of equipment removed on line

LINE
LINE MAINTENANCE
MAINTENANCE REPRESENTS
REPRESENTS ABOUT
ABOUT 77 %
%
OF
OF ENGINE
ENGINE MAINTENANCE
MAINTENANCE COST
COST
Engine DMC Breakdown ( cont’d )

SHOP ACTIVITY :

Routine Labor : assembly / disassembly, cleaning, inspection of

modules and parts

Repair of parts ( including LRU’s )

Material: cost of parts and material replaced during the shop visit

Fees, Tests, Transportation

SHOP
SHOP MAINTENANCE
MAINTENANCE REPRESENTS
REPRESENTS ABOUT
ABOUT 93
93 %
%
OF
OF ENGINE
ENGINE MAINTENANCE
MAINTENANCE COST
COST
Shop Visit Rate - Definitions

SHOP VISIT :

“An engine Removal is classified as a "SHOP VISIT" whenever

the subsequent engine maintenance performed prior to
reinstallation entails separation of pairs of major mating flanges
or removal of a disk, hub or spool. (WATOG definition)”

Some maintenance operations performed on wing or on a stand

may not be defined as a SV (eg compressor top casing on
CFM56 engines)

WATOG : World Airlines Technical Operations Glossary

Shop Visit Rate – Definitions (cont’d)

SVR IS A MEASURE OF THE ENGINE RELIABILITY PARAMETER

DILUTED (“POPULAR”) SHOP VISIT RATE SVR

Ratio of the number of shop visits in a fleet to the total fleet flying time
(expressed in 1000 hours) within a given period

It represents the aging process of the whole fleet

NON DILUTED OR RESTORED SHOP VISIT RATE RSVR

Ratio of the total number of shop visits having occurred within a

period to the total number of hours flown by the involved engines
since their last shop visit.

It represents an average time on wing between removals

Average on-wing time = 1000 / RSVR
Shop Visit Rate – RSVR and SVR
SV/KEFH
SV/KEFH
RSVR

Mature SVR

SVR

Years
Years
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Average Mature life = 1000 / MatureSVR

Engine Aging

As engine ages, the average time to shop visit lessens

Relative times to Shop Visit Mature Engine

1 0.7 0.6 0.6

1st SV 2nd SV 3rd SV 4th SV

Engine DMC Breakdown ( cont’d )

SHOP MAINTENANCE COST DEPENDS ON TWO FACTORS :

SHOP VISIT COST SVC in K$

SHOP VISIT RATE SVR nb SV / 1000

SHOP DMC
SHOP DMC == SVC
SVC xx SVR
SVR measured in
measured in $$ // EFH
EFH

SHOP
SHOP DMC
DMC IS
IS A
A FUNCTION
FUNCTION OF
OF SV
SV RATE
RATE AND
AND SV
SV COST
COST
Shop Visit Rate – Definitions (cont’d)

Calculation example
Time since SV
Yearly utilization
last shop visit Removal
1 3610 h

2 3480 h 9850 h X

3 4340 h

4 3970 h 9320 h X

5 4730 h

20130 h 19170h 2
Popular SVR = 2x1000 / 20130 = 0.099

RSVR = 2x1000 / 19170 = 0.104

Shop Visit Rate : Shop Visits cause breakdown
Example of a High Thrust Rating engine

Hot Parts
CFM56-5B3/P 12%
A321
Other
32%

Performances
42%
LLP
14%

SV MAINLY
SV MAINLY CAUSED
CAUSED BY
BY
EGT AND
EGT AND OTHER
OTHER CAUSES
CAUSES
Shop Visit Rate : Shop Visits cause breakdown
Example of a Low Thrust Rating engine

CFM56-5B6/P
LLP Other
A319
47% 42%

Hot Parts
10%

Performances
1%

SV MAINLY
SV MAINLY CAUSED
CAUSED BY
BY
LLP AND
LLP AND OTHER
OTHER CAUSES
CAUSES
Shop Visit Cost - Shop Visit Workscope
Determined by :
Shop visit cause
Time since last shop visit
Condition of different modules
On-wing life policy
Status of Life Limited Parts
Expected time to the next shop visit
Business consideration

Goal is to rebuild an engine with acceptable time to the next shop visit

Shop Visit
Expected time to next shop visit

Performance

Life Limited Parts

Other Parts
On-Wing Life Parameters depends on

Engine Rating

Engine Age

Usage severity
Engine On-Wing
By-pass Ratio Limitations Life depends on
…Performance
By-pass Ratio Limitations

Maximum
Maximum temperature
temperature
Engine Rating and On-Wing Life

Engine goes to shop

EGT deterioration

EGT Limit
EGT Limit

0 10,000 20,000 0 10,000 20,000

Time on wing Time on wing

High Rating Low Rating

Same Engine

LARGE EGT MARGIN & LOW DETERIORATION RATE

LIFE
TRANSLATE INTO LONGER ON-WING LIFE
Engine Fleet Management

OBJECTIVES

KEEP HIGHEST RELIABILITY

MAXIMIZE ASSET USE
MINIMIZE COST OF OWNERSHIP
MINIMIZE SPARE ENGINE INVENTORY
CFM56-5B/3 & -7B/3 Common Architecture

A318 737-600

CFM56-7B/3
CFM56-5B/3

A319 737-700

A320 737-800

A321 737-900

Common CORE & LPT

CFM Commonality:
Key Driver to Reduce Costs
Engine Fleet Management - Staggering

Using a spare engine to dilute utilization of installed engines

permits to avoid that several shop visits occur simultaneously.

Without Staggering
Several Shop visits occur
simultaneously 2 spares
minimum required

With Staggering
No overlap of Shop
visits 1 spare
sufficient

Installed engine
Spare engine
Shop Visit

ENGINE STAGGERING
ENGINE STAGGERING :: POSTPONE
POSTPONE SHOP
SHOP VISITS
VISITS
AND REDUCE
AND REDUCE SPARE
SPARE REQUIREMENT
REQUIREMENT
Engne Management Optimisation
EMO
Extends the on wing life of the engines that are EGT limited on A321
Postpones shop visits which would have otherwise occurred on A321

EGT EGT Redline

A321-5B3/3 On Wing Life A319-5B6/3 Additional On Wing Life

EFH

Engine Removed from A321

and installed on A319
CFM TRUEngineTM:

Recognizing the value of

a TRUE original

January 2009

CFM International Proprietary Information

The information in this document is CFM Proprietary Information and is disclosed in confidence. It is the property of CFM
International and its parent companies, General Electric Company and Snecma (SAFRAN Group), and shall not be used,
disclosed to others or reproduced without the express written consent of CFM. If consent is given for
reproduction in whole or in part, this notice shall appear in any such reproduction in whole or in part. The
information contained in this document may also be controlled by the U.S. and French export control laws.
Unauthorized export or re-export is prohibited
TRUEngine™ designation

TRUEngine …
 is a free program … no cost to qualify or receive benefits
 identifies content… market uses this information to assist in assigning value
 is not permanent or contractual … status remains in effect until next shop visit
(requalification), configuration change, or owner/operator choice to decline
 is granted on an individual ESN basis … not by customer or fleet
Momentum for TRUEngine™ program
“…Achieving TRUEngine status is one more way in which “… theTRUEngineTM program is an adequate technical
Southwest Airlines can differentiate our fleet from our response to a largely shared request from the aviation industry”
competitors.”
Mr. Bellatig
Mike Van de Ven
Vice President, Engineering and Maintenance of RAM
Executive VP & COO

3400+
Qualified engines
33
Customers
worldwide
and growing …

“… advantages of the CFM56 engine have helped our airline
maintain a competitive advantage… and we are proud to achieve
designation as a TRUEngine operator.”
Steve Harfst
President and CEO of USA 3000
“…the TRUEngine qualification confirms our commitment to
maintaining our assets to the highest standards available.”
John Willingham
CEO Macquarie AirFinance
TRUEngine™ owner/fleet manager benefits

Asset Value
 Baseline appraisal values assume all OEM content
 Currently no used market or part-out value for PMA
 TRUEngine signifies eligibility for highest value possible

Marketability
 Transferable benefits… TRUEngine designation entitles lessee to
various operator benefits
 CFM-approved configuration universally accepted

Supports lease agreements

 Lease agreements specify OEM content and repairs
 TRUEngine designation confirms configuration and content
consistent with CFM-certified system

Value retention & increased re-marketability

TRUEngine™ benefits summary

9 Known Configuration … maximum resale value & re-marketability

9 Extended Parts Guarantee … transferable to lessee

9 Configuration Assurance Guarantee … qualification “warranty”

9 Complimentary Access to CFM Lease Pool … all TRUEngine customers

9 Records/configuration review … after each SV to verify eligibility

9 Transition Support … optimized overhauls due to known configuration

9 TRUEngine Qualification website … status verification for customers

The value of a true original