Economic Life

Economic Life

What is Economic Life?

Understanding Depreciation and Value

Economic Life in aviation measures how long an aircraft remains financially viable for commercial operations.

Economic Life is the time period when an aircraft remains economically viable for operation, considering operational costs, maintenance, fuel efficiency, and market demand.

• Cost-Benefit Analysis: Airlines assess the economic life by considering maintenance, fuel efficiency, and operational costs against revenue.
• Market Demand Impact: Changes in market demand for certain aircraft types can significantly affect their economic life.
• Fleet Management Strategy: Airlines use the concept of economic life to strategize fleet upgrades and retirements.

The economic life of an aircraft is a critical factor in airline fleet management, balancing costs with market demand and operational efficiency.