Right now, the scrap price seems to decrease a bit every year. This decrease is relative to the age and original value of the plane. However, the demand of scrap parts plays an important role in determining the value of an aircraft. The demand is proportional to the amount of aircraft in service, to the amount of aircraft in the used market (which could potentially all be parted out) and obviously inversely proportional to the average age of the global fleet of the aircraft. The last factor is because old planes need more spare parts, which can come from these parted out / scrapped aircraft. This way, we may see a scrap value, which is higher than the sale value, and encourage scrapping old aircraft. New airplanes, for which a high demand remains, should obviously be worth more as a whole than in parts, encouraging their sale. What do you think?
New calculation method of scrap value
#1
Posted 17 September 2014 - 12:22 PM
#2
Posted 17 September 2014 - 01:24 PM
The scrap price calculations certainly need to be reworked...
#3
Posted 17 September 2014 - 03:15 PM
Yep, scrap is always too cheap, the only reason I would scrap a plane is that it is something like 15-20 years old. Yuxi i am waiting on the like button planned for AE4 ...
i-air (R7)
i-air/i-air connection (S2)
#4
Posted 17 September 2014 - 03:28 PM
Yep, scrap is always too cheap, the only reason I would scrap a plane is that it is something like 15-20 years old. Yuxi i am waiting on the like button planned for AE4 ...
Indeed, AE has a 'throw it on to the market' culture. Everyone sells aircraft, leaving 36 y/o 737-200s in one side, not bought, then disappear after 6 months.Obviously, there is little demand for these aircraft. And on the like button, won't be happening.
#5
Posted 18 September 2014 - 06:01 AM
I agree with this. Sometimes 30+ year old aircraft are still worth selling than scrapping. In real life that is definitely not the case. I commend the good point raised that number of aircraft operational in the global fleet plays a role in the parts value of a scrapped aircraft.
#6
Posted 18 September 2014 - 06:37 AM
I agree with this. Sometimes 30+ year old aircraft are still worth selling than scrapping. In real life that is definitely not the case. I commend the good point raised that number of aircraft operational in the global fleet plays a role in the parts value of a scrapped aircraft.
That's because in real life you wouldn't get the money unless someone bought it, so it's probably worth more but as no one wants it they have no option but to scrap it.
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