Ownership 1.qxp_Finance 17/05/2022 14:49 Page 3
OWNERSHIP
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“Engines tend to have the most variance in maintenance costs...” ascertain the aircraft’s value. To illustrate, which of the following aircraft would be the more desirable? • Aircraft A: Age 14 years, 4,200 Hours’ Airframe Total Time • Aircraft B: Age 16 years, 8,100 Hours’ Airframe Total Time • Aircraft C: Age 10 years, 4,400 Hours’ Airframe Total Time While Aircraft C is the youngest, and Aircraft B the oldest, Aircraft A has the fewest flight hours. Evaluating the value of an aircraft goes well beyond these factors and requires an understanding of both ‘condition’ and exposure to future maintenance events and their associated costs. Sometimes the older aircraft may be the best
value, and at other times not. The same applies to higher or lower flight hours.
In Summary…
An analysis of the maintenance condition in terms of current status and upcoming events, and the physical condition of the aircraft itself, is required to arrive at what the fair value is. The inclusion of a guaranteed hourly maintenance program helps. Ultimately, how does one aircraft compare with the competition on the market, or the possibility of acquiring a (higher-priced) new aircraft with zero time, and almost zero flight hours? Next time, we’ll dive deeper into maintenance condition and look at what has been done, what is to be done, and the cost of those events in relation to an aircraft’s value. T
DAVID WYNDHAM is the Founder of David Wyndham + Associates, LLC. He is a highly respected industry veteran having built up more than 36 years of aviation experience, including as president and co-founder of Conklin & de Decker. He is also Vice President, Asset Insight Consulting Services.
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https://www.linkedin.com/in/davidwyndham/
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