Repair Cost Inflation: What Is Going On? | Aviation International News

Repair Cost Inflation: What Is Going On?

How big is the problem and what are its causes?

By AIN Staff • AIN Staff

February 17, 2020

In recent years, western economies have enjoyed incredibly low levels of price inflation overall. Certain costs have bucked the trend, however, as you will know very well if you have tried renting an apartment in London or San Francisco. Another of these “outliers” appears to be the cost of repairing aircraft hull damage. So, how big is the problem and what are its causes?

Earlier this year, Global’s actuaries looked at the cost of larger partial hull losses from our airline portfolio over a six-year period (2010/11 to 2016/17). They found that for all loss causes (e.g., bird strike, runway excursion, taxiing incidents), the average size of the claims rose between 32% and 133% depending on the type of loss. By way of comparison, the U.S. Consumer Price Index (CPI) rose by about 10% in the same period.

The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background.

The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background.

The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background.

The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background.

Lockheed Martin Rolls Out First German F-35A Fighter

First fighter due to arrive in-country in late 2027

F-35 in hangar against graphics on screen

Embraer Delivers First Praetor 600E Ahead of Schedule

Launch customer Flexjet accepts first of the upgraded super-midsize jets

Embraer Praetor 600E in flight

Aura Aero Flies Former VoltAero Aircraft As Testbed

Aura Aero makes first flight of hybrid-electric testbed since acquiring assets

Modified Cessna 337 Skymaster over coast r

ACJ: Strong Large-aircraft Market Growth Ahead in Asia

Research finds most financiers and brokers in Asia see market demand increasing

Airbus Corporate Jets ACJTwoTwenty

Britten-Norman Targets Eight New-build Islanders Annually

UK production expansion follows inaugural flight of latest Bembridge-built unit

Britten-Norman Islander

Bizjet Market Value To Reach $60B per Year in Next Decade

Market estimated to grow from $27 billion in 2025 to more than $60.5 billion

Phenom 100

Atlas Will Build Electra’s EL9 Hybrid-electric Prototypes

Wichita-based aerospace manufacturing group has partnered with the U.S. start-up

Electra EL9 aircraft

Honda Aircraft Finishes Echelon Wing, Delays 1st Flight

Final assembly of the first jet will take place early next year

Honda Aircraft team and the Echelon wing