Economic life : Metrics and outlook
The economic life of an aircraft has now been a major topic across the
industry for a number of years. This is a result, primarily, of the ongoing and
necessary emphasis on the rate of depreciation for ageing aircraft. Some now are suggesting that economic life is declining and that higher rates of depreciation are in order. Others are suggesting that the situation has not changed over the long term.
In this article Michael J. Miller, Vice President, Consulting and Valuation at AVITAS, Inc. will examine the issue in some detail and provide at least some tentative conclusions as to how we see the issue evolving in the years ahead and any effects on the new generation of aircraft.
Article featured in the Airfinance 2014/2015 Annual Yearbook