Seminar paper from the year 2014 in the subject Engineering - Aerospace
Technology, grade: 1,3, University of Applied Sciences Wildau (Wildau
Institute of Technology), course: Aviation Management 2012, language:
English, abstract: Indeed, the majority of airlines are faced with the
challenge of aging fleets and when it might be optimal to replace older
aircraft. Well, any discussion of the wisdom of retaining capital
equipment is usually based on economic arguments. In a competitive
environment, airlines are continuously obliged to improve their business
and equipment to stay profitable. The prediction of future maintenance
costs of the own fleet is an integral element of prospective budgeting
projections; on the other hand they serve as a vital part within
aircraft replacement calculations. For example if the costs of
maintaining the existing equipment on a timely basis exceeds the
capital, interest, and amortization charges on replacement equipment,
the decision to buy a sort of replacement is straightforward. In most
cases the substitute equipment even offers an improved productivity as
well (Dixon 2006, p. 1). Beside any debate concerning costs and
efficiency, flight safety considerations also enter into the discussion
especially in the field of aviation. The question to repair or replace
is an ongoing decision making process for the maintenance department of
every airline operator. Now the key questions to be answered in this
context are: Is it possible to describe a standard airplane service life
and how does the fleet age of world's leading airlines look like? How
does the process of maintenance develop over an aircraft's whole life
cycle and can necessary costs be estimated? What can be done technically
to keep aging effects of aircraft under control and when might be the
right time to withdraw an aircraft from service? In order to answer the
abundance of questions my term paper is divided into an economic based
part including compiled data and statistics
