Feature: another kind of investment

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Investing in aircraft engines can be a bit of a minefield. It is a small market with only a few players. There are only at most a couple of thousand spare engines in the market and, although the asset is generally recognized as retaining its value better than an airframe, there only remain a few willing to venture into this space.

But the investing rules are the same for engines and aircraft. So it is no surprise that CFM topped our poll this year with its CFM56-7B and -5B. The overall investor appeal of the engines is high because of the 737NG and A320 being the most popular aircraft, as well as full order books. Also, lease rates are increasing for these engines.

Lessors are a popular option"An aircraft is only worth the value of its engines at the end of its useful life," says Charles Willis, chief executive officer, Willis......

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