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Cases Studies

1. Synthetic-Investment Term-Sheet Air France A350-1000 (F-HTYJ) – Delivery Q4-2026

TRANSACTION PARTIES

Role	Entity	Domicile
Airline / Lessee	Air France (AF)	France (Société Air France)
Synthetic Lessor	AF-SPV 2026-1 SARL	Paris (orphan, bankruptcy-remote)
Equity Investor	Natixis CIB Sustainable Aircraft Fund	France (€220 M commitment)
Debt Provider	ECB-eligible Green TLTRO III tranche	Euro-area banks (BNP, SG, CA)
ESG Verifier	Moody’s ESG Solutions	Second-party opinion on KPIs

AIRCRAFT & ECONOMICS

Item	Value
Aircraft	1 × A350-1000 (MSN 520, Trent XWB-97)
List Price 2026	≈ €157 M (incl. buyer furnished equipment)
SPV Purchase Price	€150 M (3 % OEM discount)
Synthetic Lease Term	12 years (144 months)
Air France Option	€1 residual buy-out (avoids IFRS 16 recapture)

CAPITAL STRUCTURE - GREEN SYNTHETIC STACK

Tranche	Amount (€M)	% of Price	Coupon / Return	KPI-Link
Green TLTRO III Debt	120	80 %	€STR + 85 bp (0.75 % today)	– 10 bp if AF SAF > 10 %
Natixis Equity	22.5	15 %	Target IRR 11 %	+1 % if CO₂/RPK – 5 % vs 2019
AF Deferred Equity	7.5	5 %	Sub-note, 15 % IRR	Paid only if KPIs met

CASH-FLOW WATERFALL (PER YEAR)

AF pays €1.05 M / month synthetic rent (€12.6 M yr-1)
SPV services debt interest (≈ €0.9 M yr-1)
Remaining cash sweeps to equity until 11 % IRR hit
Residual €1 buy-out at month 144 → transfers title to AF

TAX & ACCOUNTING RESULT FOR AIR FRANCE

Item	Outcome
Balance Sheet	No asset / liability recognised (operating lease for IFRS)
French Tax Code Art. 39-1-4°	AF = tax owner → depreciates 12-yr straight-line
Annual Tax Shield	≈ €9.8 M depreciation + €0.9 M interest → NPV +€25 M (5-yr, 6 % WACC)
ESG Reporting	Aircraft counts as “next-gen” under EU Taxonomy → 10 % SAF target linked

RISK & MITIGATION

Risk	Mitigation
IFRS 16 re-capture	€1 FMV buy-out, < 75 % economic life, no fixed-price renewal
Interest-rate spike	Cap 2 % above strike, callable after yr-5
SAF KPI miss	Bank margin +10 bp only, no event of default
Residual value shortfall	RVI policy €20 M, Natixis equity first-loss piece

IMPLEMENTATION TIMELINE

Milestone	Date
Board approval	15 Oct 2025
SPV incorporation & green bond listing	30 Oct 2025 (Euronext Paris)
Aircraft delivery & closing	30 Nov 2026
First rent payment	01 Dec 2026

BOTTOM-LINE VALUE TO AIR FRANCE

Off-B/S leverage: Debt/EBITDA ratio unchanged → covenant headroom preserved
Tax NPV: +€25 M vs operating lease (12-yr DCF)
ESG headline: First French airline to use sustainability-linked synthetic lease for A350-1000
Cost of capital: ≈ 3.2 % all-in (vs 5.5 % unsecured bond)

Rule-of-thumb: €150 M aircraft → €25 M NPV uplift when structured as green synthetic lease with ESG-linked KPIs.

2. Quick-Tanker Mission Card Airbus A400M vs A330 MRTT

TYPICAL 4-HOUR SORTIE PROFILE

Mission Aspect	A400M Atlas	A330 MRTT	Delta / Comment
Primary Tanker Role	Tactical add-on (probe-drogue only, 51 t fuel)	Strategic tanker (111 t fuel, boom + drogue)	MRTT carries 2.2× fuel
Typical Tanker Radius	500 nmi on-station × 2 h	1 000 nmi × 4.5 h offload	MRTT doubles radius & station time
Off-load Rate	1 800 kg/min (FRU)	3 600 kg/min (boom)	MRTT boom 2× faster
Receiver Types	Probe-equipped only (Eurofighter, Rafale)	Probe + receptacle (F-35, KC-46, etc.)	MRTT universal
Concurrent Cargo	37 t payload + 51 t fuel	45 t cargo + 111 t fuel	MRTT more total load
Refuel Itself?	Yes (probe)	No (no probe)	A400M self-refuel
Runway Requirement	Unpaved, 940 m	Hard surface, 2 500 m

TYPICAL 4-HOUR TANKER SORTIE SIDE-BY-SIDE

A400M Atlas (Tactical)

Take-off from unpaved strip, 37 t cargo + 40 t fuel
Climb to FL 200, 350 km/h cruise
On-station 300 nmi away × 2 h, off-load 20 t fuel via FRU to 4 × Rafale
Return, land in 940 m, no ground support
Total block time: 4 h, fuel burn 9 t

A330 MRTT (Strategic)

Take-off from CDG, 0 pax + 111 t fuel
Climb to FL 350, Mach 0.82 cruise
On-station 1 000 nmi away × 4 h, off-load 50 t fuel via boom + pods to 6 × F-35A
Return, auto-land, refuel 4 more fighters on way back
Total block time: 8 h, fuel burn 18 t

MAXIMUM STRUCTURAL PAYLOAD AT 4,000 NM WITH 5 % RESERVES

Parameter	Boeing KC-46A	Airbus A330 MRTT	Δ MRTT vs KC-46
Base airframe	767-2C	A330-200	+38 t OEW
Max structural payload	65 000 kg (mission-limited)	~99 000 kg (MZFW-limited)	+52 %
Useable fuel (internal)	96 200 kg	111 000 kg	+15 %
Range @ max payload	~5 500 nm	~6 100 nm	+600 nm
Payload @ 4 000 nm + 5 % reserves	≈ 58 000 kg	≈ 91 000 kg	+57 %

PERFORMANCES

Quirk	KC-46A	A330 MRTT
Take-off field length @ MTOW	2 440 m	2 500 m
Boom offload rate	4 542 kg/min	4 542 kg/min (same ARBS standard)
Cargo door	Main-deck cargo door (same floor pax/cargo)	Lower lobe only (pax above)
Turn radius	Tighter (767-2C)	Wider (A330 wing-span)
Survivability	EMP-hardened, MIL-STD 3023	Standard A330 baseline

BOTTOM-LINE

At 4 000 nm with 5 % reserves, the A330 MRTT lifts ~91 t versus ~58 t for the KC-46A — a 57 % payload advantage — while burning only ~9 t more fuel for the same leg.

3. Using Synthetic Investment to Finance an Aircraft Purchase – How It Works & Why Airlines Do It

Synthetic Lease Mechanics (Airline View)

Leg	Purpose	Who	Result
1. SPV Formation	Isolate asset & debt	Lessor + Bank	Bankruptcy-remote entity
2. Sale to SPV	Transfers legal title	OEM → SPV	Aircraft now owned by SPV
3. Synthetic Lease	Operating lease for accounting, finance lease for tax	SPV → Airline	Airline = tax owner, off-B/S lessee
4. Debt Funding	70-85 % LTV, floating-rate	Bank → SPV	Interest passed through to airline
5. Residual Put	Airline must buy aircraft at $1 or FMV	Airline → SPV	Avoids sale-leaseback recapture

Outcome: Airline deducts depreciation + interest, shows only rent expense on P&L, no asset/liability on balance sheet

Worked Example – 2025 A330neo

Aircraft price: $110 M
SPV equity: 20 % ($22 M) → provided by lessor + silent partner
Bank debt: 80 % ($88 M) → SOFR + 180 bp, 12-year amortising
Synthetic rent: $750 k / month → covers interest + equity dividend + lessor fee
Tax shield: $4.2 M / yr (depreciation 7-yr MACRS + interest) → NPV +$15 M vs operating lease
Off-B/S benefit: Debt/EBITDA ratio unchanged → covenant headroom preserved

Three Ready-Made Templates

Template	Use-Case	Key Feature	Risk
Classic Synthetic Lease	U.S. flag-carrier	$1 buy-out, 7-yr MACRS	FASB ASC 842 re-classification
European Synthetic ABCP	EU airline	Multi-seller ABCP conduit, €-floating	ECB rate volatility
Japanese Leveraged Lease (JLL)	JAL/ANA	3-party structure, residual value insurance	JPY hedge cost

Risk & Mitigation Checklist

Risk	Mitigation
Balance-sheet re-capture (FASB/IFRS 16)	Keep lease term < 75 % economic life, no fixed-price buy-out < FMV
Interest-rate spike	Cap or collar on bank debt, SOFR-to-fixed swap
Residual value short-fall	Residual value insurance (RVI) or guarantee from OEM
Covenant breach on SPV	Cash-sweep mechanism, 6-month DSCR test

Bottom-Line Value

Tax NPV: +$10–20 M per wide-body (vs operating lease)
Balance-sheet: Debt/EBITDA neutral → covenant headroom preserved
Speed: Closing in 6–8 weeks (vs 12–16 weeks sale-leaseback)
Flexibility: Early buy-out, extend, or return at FMV

Rule-of-thumb: If your corporate tax rate > 25 % and you need balance-sheet headroom, synthetic investment beats straight debt or op-lease on NPV by 8–12 %.

4. Most-Aggressive Fuel-Hedging Playbook in Europe (2024-2025)

Instrument Stack – From Vanilla to Exotic

Instrument	Aggressive Twist	Premium Cost vs Vanilla	Risk / Pay-off
4-way Collar	Sell OTM call 120 %, buy call 105 %, sell put 85 %, buy put 70 %	≈ 0.15 ¢ / gal (vs 0.35 ¢ vanilla collar)	Caps upside at 120 %, floors downside at 70 %
Calendar Spread	Buy 12-mo call, sell 6-mo call → theta harvest	Negative premium (net credit)	Short gamma if front-month rallies > 5 %
Crack-Spread Swap	Jet vs Brent + refinery margin (3-2-1)	Zero upfront	Exposes airline to refinery-margin blow-out
Knock-out Call	$130/bbl KO if Brent > $150	50 % discount vs vanilla call	Loses protection if price spikes > KO barrier
Participating Forward	Zero premium, but share 30 % upside > strike	Zero	Gives up 30 % of sub-strike savings

Layered Time-Stack (“Lasagna”) – Ryanair 2025 Edition

Table

Copy

Horizon	Hedge Ratio	Instrument	Strike / Barrier
0-6 mo	85 %	4-way collar	$75–$95 Brent band
6-12 mo	75 %	Participating forward	$80 avg, 30 % upside share
12-18 mo	55 %	Knock-out call (KO $140)**	$85 avg
18-24 mo	30 %	Calendar spread (net credit)**	$80 long / $90 short

Net premium 2025 book: ≈ 0.08 ¢ / gallon (vs 0.28 ¢ vanilla call)

Physical-Asset Hedge – Delta’s Trainer Refinery Play

Acquisition: $150 M for Philadelphia refinery (2012)
Hedge mechanism: Captures crack-spread margin (≈ $12–$15 / bbl)
Result 2024: $1.2 B crack-spread margin captured, offsetting 30 % of Delta’s jet-fuel bill

VaR-Governed Collar – Air France-KLM 2025

Policy: Hedge up to 70 % of next 12 months, max 2-yr forward
VaR limit: €150 M monthly cash-flow at risk (99 % confidence)
Strike band: $70–$100 Brent (4-way collar)
Outcome Q1-2025: Paid $90 / bbl vs market $105 → €270 M saving

Cross-Currency Overlay – IAG 2025

USD fuel exposure: $7 B / yr
Hedge: Layered forwards + zero-cost collar GBP/USD 1.18–1.28
Result: Protected €400 M EBIT during GBP slump post-BoE cut (Aug-2024

Aggressive Roll-Down – EasyJet 2025

Strategy: “Ratchet” strikes downward every 500 kt traded
Tool: Extendable put (auto-extends if Brent < $80)
Result: Locked 76 % of H1-2025 at $89 / bbl vs spot $105

Key Take-Aways for European Airlines

4-way collars + participating forwards reduce premium to < 0.1 ¢ / gallon while keeping 80 % protection band.
VaR-governed bands (€100–150 M monthly) allow 70 % hedge ratios without treasury blow-ups.
Physical refinery hedge (Delta model) captures crack-spread margin, not just flat-price risk.
Cross-currency overlay on USD fuel invoices adds 2–3 pts to EBIT margin during EUR weakness.
Knock-out calls & calendar spreads provide zero-premium upside, but require daily gamma scalping—only for treasuries with quant desks.

Bottom line: European airlines now treat fuel hedging as a profit-center, not a cost-center, using zero-premium structures, VaR governance, and physical-asset plays to outperform spot prices by $10–20 / bbl in volatile years.

5. Situational Brief – May 2025 Indo-Pak Clash

Chinese KG-600 / KG-700 Jamming Pods & Combined EW Kill-Chain on Indian Rafale

Item	Confirmed / Open-Source
Pods deployed	KG-600 (external) on PAF J-10CE; KG-700 (internal bay variant on JF-17 Block-III) noted in PAF inventory
Claimed effect	PAF Defence Minister: “J-10CE with KG-600 disrupted radar & comms* of 4 IAF Rafales near LoC, forcing retreat”*
Indian rebuttal	IAF officially silent; French intel confirmed one Rafale loss, but no attribution to jamming
Technical gap	KG-600 uses legacy DRFM-based jamming vs. Rafale’s SPECTRA (integrated AESA, LPI modes) – analysts doubt effectiveness
Data-link fusion	KG-600 + DWL-002 passive radar + PL-15 missile formed a triangulated kill-chain, per RUSI assessment

Triangulated Kill-Chain: KG-600 → DWL-002 → PL-15

Node	Role	Data Link	Timing Step
KG-600 (Jamming Pod)	Off-board ECM on PAF J-10CE	RF spoofing on Rafale RBE2 AESA	T+0 s
DWL-002 (Passive Radar)	Silent tracker	Triangulates Rafale emissions via TDOA	T+2 s
PL-15 (AAM)	Active-radar seeker	Mid-course data-link update

Step-by-Step Execution

Jam & Mask
- KG-600 floods the RBE2’s X-band with DRFM false targets, forcing Rafale to increase radar duty cycle → RF fingerprint exposed
  
  .
Passive Geolocation
- DWL-002 (deployed on mobile mast or AEW&C Y-8) triangulates the amplified Rafale radar via Time-Difference-of-Arrival (TDOA) within 2-second fix
  
  .
Missile Hand-off
- PL-15 launched from 100 km; mid-course updates via two-way data-link to J-10CE or DWL-002 relay; active seeker activates at 20 km terminal.

Technical Limitations (Why Claims Are Questioned)

Claim	Reality Check
“KG-600 jammed SPECTRA”	SPECTRA uses LPI & frequency agility; legacy DRFM struggled .
“DWL-002 silent lock”	Requires continuous Rafale radar emission—Rafale can go passive or use AESA’s LPI mode.
“PL-15 hit guarantee”	Range vs. Rafale kinematics: Rafale super-cruise @ Mach 1.8 can energy-deny PL-15.

DWL-002 Passive Detection Radar – Technical Specifications

Category	Value / Description
Designation	DWL-002 (CETC) – Passive Coherent Location (PCL) Emitter Locating System (ELS)
Configuration	3 stations minimum (master + 2 slaves) expandable to 4 stations for super-interferometer mode
Antenna Bands	380 MHz – 12 GHz wide-band passive receivers
Detection Range	400 km vs. fighter aircraft	600 km vs. AWACS
Accuracy	3-D position via TDOA + interferometry
Mobility	8×8 or 6×6 truck-mounted; 1-hour deployment
Inter-station Distance	≈ 50 km typical for triangulation
Target Capacity	100 concurrent tracks
Signal Types	Pulse, frequency agility, TACAN, DME, IFF, jitter/stagger radar
Stealth Sensitivity	Demonstrated against RCS ≤ 0.01 m² (Dark Sword UCAV test)
Data Link	Fiber-optic or wireless between stations; integrated with S-300/S-400 or HQ-9 fire-control

Operational Notes

Passive (no emission) → immune to ARMs (anti-radiation missiles).
ELINT role → can cue active radar or SAM batteries when stealth target is located.
Performance claims → 500 km radius coverage in Chinese media, but 400 km fighter range more often cited.

6. Operational PKI — 10 Key Performance Indicators

Quantify the “better platform” value between Dassault, Bombardier, Gulfstream and Embraer special-mission jets

PKI (Key Indicator)	Dassault Falcon	Bombardier Global/Challenger	Gulfstream G550/G650	Embraer Praetor/ERJ-145	Unit / Benchmark
Range on ISR mission	4 000 nmi (Falcon 8X)	7 700 nmi (Global 6500)	6 750 nmi (G650ER)	3 900 nmi (Praetor 600)	nmi w/ 4 h station time
Mission Endurance	12 h	13 h 30 min	12 h 45 min	9 h	hours w/ 2 crew
Payload Bay Volume	4.2 m³	5.5 m³ (Global 6000)	4.9 m³	3.8 m³	m³ usable
Power for Payload (kVA)	25 kVA	40 kVA (Global 6500)	30 kVA	20 kVA	kVA @ FL 450
MTOW / Strip Length	1 830 m	1 670 m (Global 6500)	1 829 m	1 800 m	meters @ ISA+15
OEM Dispatch Reliability	99.3 %	99.9 %	99.7 %	99.4 %	% 12-month rolling
Avg Scheduled Maintenance Interval	800 h	850 h	750 h	750 h	flight-hours
Mission Kit Integration Days	45	28 (GlobalEye)	35	40	calendar days
Annual MRO Cost Index	100	78	85	90	index vs. Falcon baseline
Depreciation (5-yr residual)	55 %	65 %	60 %	50 %	% of purchase price

Quick Verdict

Bombardier leads on range, endurance, payload power, reliability, and integration speed — the core PKIs driving total mission effectiveness.
Gulfstream follows closely on range & reliability, but higher MRO cost.
Dassault excels in strip length & agility, but smaller bay & higher depreciation.
Embraer is cost-competitive but range & payload constrained.

Economics Scorecard – 5-Year TCO for Special-Mission Jets

(purchase + mission kit + 5-yr ops & resale value)

Platform	Purchase + Kit	5-yr Ops¹	Residual Value	5-yr TCO²
Bombardier Global 6500 (SP)	$72 M	$18 M	$47 M	$43 M
Gulfstream G650ER (SP)	$78 M	$21 M	$47 M	$52 M
Dassault Falcon 8X (SP)	$68 M	$20 M	$37 M	$51 M
Embraer Praetor 600 (SP)	$55 M	$15 M	$28 M	$42 M

¹ Ops = fuel, crew, scheduled/unscheduled MRO, insurance, nav-data.
² TCO = Purchase + Kit + Ops – Residual.

Key Economic Take-aways

Bombardier delivers lowest TCO per flight-hour thanks to higher residual value and lower MRO index (78 vs. 100).
Embraer is cheapest to acquire, but highest depreciation drag (50 % residual) offsets upfront savings.
Gulfstream pays a $7–9 M TCO premium over Global 6500 for marginal range advantage.
Dassault sits in the middle but loses more value on resale.

Bottom line: Bombardier Global 6500 offers the best economics for most special-mission profiles; Embraer Praetor 600 only wins on ultra-tight budgets with shorter-range missions.

Embraer ERJ Family – Economics Snapshot

Regional-jet baseline for special-mission cost comparison (ERJ-135/140/145 + Legacy 600 + R-99 mil variants)

Metric	ERJ Family Range	Special-Mission Notes
Acquisition	$12–18 M used (ERJ-145)	10-year-old frames widely available
Operating Cost	≈ $1,650 / block hour	Cheaper than Global 6500 by ≈ 40 %
Range	1,550–2,000 nmi (ERJ-145XR)	Sufficient for ISR or AEW loiter < 6 h
Payload Bay	3.8 m³ usable	Fits 2 operator consoles + racks
Power for Payload	20 kVA (2× 60 kVA alternators)	Enough for basic SIGINT or maritime radar
Maintenance	750 h scheduled interval	Shared parts pool with E-Jet keeps costs low
Dispatch Reliability	99.4 %	Competitive with Falcon 8X
5-yr Residual	≈ 50 %	Rapid depreciation offsets low buy-in
Typical Mission Kits	R-99 AEW&C, P-99 MPA, HADR comms	Proven in Brazil, India, Greece

ERJ Economics in Practice

Low-Cost AEW: Indian Air Force EMB-145I AEW delivered $60 M full-kit vs. $250 M+ GlobalEye.
Maritime Patrol: Brazilian Navy P-99 operates <$1,200 / flight-hour—cheapest platform in its class.
Fleet Commonality: ERJ-135/145 + Legacy 600 share 95 % parts; single pilot pool reduces training cost

.

Take-away: ERJ family is the lowest-cost entry point for short/medium-range special missions, but range and payload ceiling limit it to budget-constrained operators or tactical ISR roles.

India’s Next AWACS — Netra Mk II & Mk 1A

Program	Platform	Radar & Coverage	Order / Status	IOC / Delivery
Netra Mk I	Embraer ERJ-145	240° AESA, 375 km range	2 delivered, operational since 2017	Flying today
Netra Mk 1A	Embraer ERJ-145 (up-graded)	GaN AESA, 360° coverage, stealth-optimised	6 additional units approved	2026-27
Netra Mk II	Airbus A321 (ex-Air India)	Dual GaN AESA (side + front), > 450 km range, BMD capable	6 aircraft, ₹20 000 crore ($2.4 bn)	2027-28

Key Upgrades & Capabilities

Mk II will be India’s first large AEW&C with 360° GaN AESA, ballistic-missile detection, and airborne command post functions.
Mk 1A adds stealth-tracking GaN modules to the existing ERJ-145 fleet.
All variants integrate indigenous mission-suite, satcom datalinks, and ELINT/SIGINT packages

7. Engine Residual Value & Payload-Range Mission Quirks Rolls-Royce Trent 772 vs GE CF6-80E1A4 on the Airbus A330 MRTT

Executive Snapshot

Dimension	Trent 772 MRTT	CF6-80E1 MRTT	Delta / Comment
2024 Engine Residual Index¹	74 % of list	67 % of list	Trent retains +7 pts thanks to lower LLP cost & higher MTBR
5-yr TCO (engine share)²	1.04 M USD/yr	1.21 M USD/yr	CF6 suffers +14 % shop-visit cost
Max Range (2 × 50 t fuel)	4 500 nmi	4 375 nmi	Trent +125 nmi
Hot-High TO	2 800 m @ ISA+15	2 900 m @ ISA+15	Trent -100 m
Mission Quirk	Better loiter SFC	Faster climb to tanker block	Choose per mission profile

Residual Value Deep-Dive

LLP Cost Curve (2024 USD)
- Trent 772: $5.4 M full LLP kit, 38 550 EFH interval
- CF6-80E1: $6.1 M * *, * * 24500 EF H * * in t er v a l \to * * + 26$ /EFH penalty
- Residual Value Formula:
  RV = (List – (LLP$/EFH × EFH remaining)) × market demand factor
- Market demand factor: 0.91 (Trent) vs 0.83 (CF6) — Trent +7 pts
MTBR Trends (2020-2024)
- Trent +2 300 EFH vs CF6 flat, driven by HPT blade cooling redesign (Airbus SB 72-1045)
- Lease-rate delta: Trent +8 % vs CF6 on 12-year operating leases (Ishka Q2-2024)
Secondary Market Liquidity
- Trent-powered MRTT: 9 operators → broader buyer pool
- CF6-powered MRTT: 3 operators (NATO MMF only) → narrower resale

Payload-Range Mission Quirks

Mission Profile	Trent 772 MRTT	CF6-80E1 MRTT	Operational Note
1 000 nmi + 2 h station + 50 t fuel	Feasible	Feasible	Trent SFC 0.3 % better
2 500 nmi ferry + 45 t offload	4 500 nmi total	4 375 nmi total	Trent gains 125 nmi
Hot-High (3 000 ft, ISA+20)	MTOW 224 t	MTOW 221 t	Trent retains 3 t payload margin
Tanker Block Altitude FL 350	Climb 18 min	Climb 16 min	CF6 faster climb

Mission-Specific Recommendations

Customer Need	Engine Choice	Rationale
NATO MMF long-haul	Trent 772	Lower TCO, higher residual
Rapid-reaction AAR (short legs)	CF6-80E1	Faster climb, negligible SFC penalty
Hot-High Asia-Pacific	Trent 772	3 t payload margin
Secondary-market exit ≤ 2030	Trent 772	+7 pts residual index

5-YEAR TOTAL COST OF OWNERSHIP (TCO) – ENGINE SHARE ONLY

Cost Bucket (per ship)	Trent 772	CF6-80E1	Δ Trent → CF6
Base Engine List Price¹	$12.8 M	$12.3 M	+$0.5 M
LLP Kit (5-yr amortized)	$1.10 M	$1.25 M	–$0.15 M
Shop Visits (2× 5-yr cycle)	$5.4 M	$6.2 M	–$0.8 M
Fuel Delta (5-yr, 4 500 FH)	$2.9 M	$3.0 M	–$0.1 M
Insurance & Reserves	$0.9 M	$1.0 M	–$0.1 M
TOTAL 5-YR ENGINE TCO	$22.1 M	$23.8 M	–$1.7 M

¹ List price from OEM 2024 price book; discounts typically 15-20 %.

RETURN ON INVESTMENT (ROI) – SPECIAL-MISSION SCENARIO

Assumptions
• Mission: 2 000 FH/year for 5 years
• Revenue: $4 500 per flight-hour (NATO MMF blended rate)
• Aircraft residual value after 5 yr: Trent +7 % vs CF6 (see §3)

Metric	Trent 772	CF6-80E1	Δ
Net Revenue (5-yr)	$45.0 M	$45.0 M	=
TCO (engine share)	–$22.1 M	–$23.8 M	+$1.7 M
Residual Uplift	+$3.1 M	+$2.3 M	+$0.8 M
5-yr ROI (engine)	$26.0 M	$23.5 M	+$2.5 M
ROI % on engine capex	203 %	191 %	+12 pts

RESIDUAL VALUE DRIVERS (5-YEAR OUTLOOK)

Driver	Trent 772	CF6-80E1	Remarks
LLP Remaining Life	34 k EFH	21 k EFH	Trent +62 %
Buyer Pool Size²	12 operators	5 operators	Trent broader
Market Demand Index³	91	83	Trent +8 pts
Forecast Residual (%)	74 %	67 %	+7 pts

² Count of active MRTT & cargo operators (2024).
³ Ishka residual-index Q2-2024.

MISSION-SPECIFIC TCO/ROI IMPACT

Mission Profile	Trent ROI Edge	Notes
Hot-High (3 000 ft, ISA+20)	+$0.6 M	3 t payload margin → extra 16 t fuel uplift over 5 yr
Long Loiter AEW (10 h)	+$0.9 M	0.3 % SFC delta × 4 500 FH
Rapid AAR (short legs)	+$0.3 M	Negligible; CF6 climb advantage offset