Earlier Airplane Retirements Have Mixed Consequences | Aviation International News

Earlier Airplane Retirements Have Mixed Consequences

Favorable financing environment encourages owners to retire relatively young airplanes, changing dynamics of the aftermarket business

Aircraft tear-down specialists generally derive more value from engines than any other component. (Photo: Aircraft Demolition)

By Gregory Polek • Senior Editor

October 8, 2014

The ready availability of low-interest-rate financing for new aircraft has seen the average age of airplanes retired for parts decline precipitously, keeping companies specializing in so-called teardowns busier than ever. Meanwhile, major and relatively rapid improvements in fuel efficiency promised by the world’s big airliner manufacturers and engine makers only promise to accelerate the trend, as operators tend to limit lease terms in anticipation of replacing their fleets with more efficient new models.

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