Aircraft scrapping
Can anyone tell me what are the main factors in the scrapping of a modern airliner today? I understand there is the airframe hours/cycles, pending D checks etc...What are the main airline finance reasons for scrapping? I find it so hard to see A320's, 777's and 9V-SKA and 9V-SKC waiting to be crushed
Re: Aircraft scrapping
This is not an expert opinion, just some speculation on my part.
777's have been flying since the 1990's. It is a good possibility you are looking at a 30 y/o frame which has extensive cycles and hours. The cost to refurbish it certainly not cheap. Airlines simply don't have the money or need for such a refurbishment and perhaps a conversion to a freighter when Boeing already makes a 777f.
So it's simply much wiser to spend a bit more on a brand new frame that's got potentially 30 in front of it then 30 years behind it plus the 2019 version is a better plane with more advanced hardware and software. That would be my guess.
777's have been flying since the 1990's. It is a good possibility you are looking at a 30 y/o frame which has extensive cycles and hours. The cost to refurbish it certainly not cheap. Airlines simply don't have the money or need for such a refurbishment and perhaps a conversion to a freighter when Boeing already makes a 777f.
So it's simply much wiser to spend a bit more on a brand new frame that's got potentially 30 in front of it then 30 years behind it plus the 2019 version is a better plane with more advanced hardware and software. That would be my guess.
Re: Aircraft scrapping
As I've read here, one other factor is economics of the aircraft and what else is out there at what cost. The reason A318s and 319s are being scrapped is that they aren't much cheaper to run than an A320. So the value declines and at some point, the parts value exceeds the airframe value. At that point you just scrap it, even if it is a relatively new aircraft.
For the A380, there are other aircraft that in most cases can do the same job at same or lower cost. Nobody wants them used, so they are of very low value as an airframe. Yet their parts are still worth something. So they are starting to be scrapped, even though not very old.
For the A380, there are other aircraft that in most cases can do the same job at same or lower cost. Nobody wants them used, so they are of very low value as an airframe. Yet their parts are still worth something. So they are starting to be scrapped, even though not very old.
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Re: Aircraft scrapping
flightuk wrote:Can anyone tell me what are the main factors in the scrapping of a modern airliner today? I understand there is the airframe hours/cycles, pending D checks etc...What are the main airline finance reasons for scrapping? I find it so hard to see A320's, 777's and 9V-SKA and 9V-SKC waiting to be crushed
Mate,
I think Tim's answer hits the nail on the head. In case you didn't know:
A320 first flight: February 1987
777 first flight: June 1994
Both are fairly old types.
Stuck at age 15 thanks to the certification date of the A320-200 and my parents' decision to postpone having a kid by 3 years. At least there's Dignitas...
Re: Aircraft scrapping
also factors not related to the plane:
availability of planes (buyers' vs sellers' market, growing economy vs recession),
oil price,
interest rate for capital cost,
pilots availability
availability of planes (buyers' vs sellers' market, growing economy vs recession),
oil price,
interest rate for capital cost,
pilots availability
Why can't the world be a little bit more autistic?
Re: Aircraft scrapping
More a question. Jets are first off the aircraft it appears; what happens to the jet engines? With all the engine problems these days are parts taken from old/used engines and reused?
Thanks
Thanks