InsideMRO: Too busy to retire?

Armando Filho, Director of Trading & Material Management features in InsideMRO discussing how aircraft retirement delays are creating a competitive seller’s market for used aircraft, engines and parts.

“The shift in aircraft teardown trends is driven by the realization that teardown offers more than just an end-of-life solution,” he notes. “Aircraft owners and operators now recognize that they can harvest valuable assets from the process, continuing to reap returns on their investments.”

Filho notes that asset owners must still think carefully when deciding between teardown and conversion for aging aircraft.

“While the air cargo market is experiencing challenges such as declining volumes and yields, it remains a dynamic sector with regional variations and occasional growth spurts,” he says. “When considering sourcing an aircraft for teardown, it’s important to bear in mind that there is a niche market to explore. A thorough valuation must be conducted to ensure a return on the capital invested in the short, medium and long term.”

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Article courtesy of Aviation Week Network