Residual Values of Low Cost Operator Aircraft Potentially Weaker

November 2013
Aircraft Value News;11/4/2013, Vol. 22 Issue 22, p2
Market Research Report
The author discusses the potential effects of the low cost airline operators on the value of an aircraft. It says that with the offer of low fares, operators opt for maximizing utilization of their aircrafts, spreading operating costs with flying more sectors length resulting to higher revenues. However, the article also says that with the ability to increase utilization comes with the shortened service life of an aircraft and induced greater wear and tear, replacing it only within 10 years.


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