Media Center

Why Asset Management is Key to Maximizing the Revenue of Your Aging Aircraft

Facing a steady increase in demand for air travel, the global commercial fleet is expected to grow 3.6% annually over the next decade. The age of the global fleet will drop from 11.3 years, its age today, to 10.7 years by 2029. Of the 21,000 aircraft deliveries anticipated in the next 10 years, 45% will replace in-service aircraft, according to Oliver Wyman

The percent of narrow-body aircraft in the global fleet is expected to increase from 58% to 66% by 2029, with an annual growth rate of 4.9%. Wide-body aircraft will see a 3.9% annual growth rate during the same period. The same Oliver Wyman study predicts that the number of regional jets and turboprops will continue to decline as narrow-bodies provide a more cost-effective alternative. 

What does this mean for commercial airlines? Fleets are only going to get more efficient and technologically advanced in the years to come. But as fleets grow and new aircraft arrive on the scene, airlines also face a familiar challenge: maximizing the revenue of their aging aircraft. Doing so requires an aviation asset management strategy that reflects both where the global fleet is today and where it’s heading.

Navigating Aircraft Management Services

More than 5,000 aircraft and 12,000 engines have been retired in the past decade. Peak retirements between 2007 and 2012 were driven by a “soft” demand environment and high fuel prices. But now, low fuel prices and strong traffic growth have created a highly competitive end-of-life solutions market. Savvy commercial airlines are implementing asset management strategies to maximize the value of their mid- to end-of-life aircraft, parts, and equipment. More than mere “management,” these programs are designed to turn aging assets into a powerful source of revenue that can be invested back into an aviation business. They are sometimes referred to as aircraft depreciation management programs.

An effective aviation asset management strategy requires a wide range of expertise and infrastructure. Business savvy, airframe and powerplant technical knowledge, and firsthand experience in today’s aviation aftermarket are all critical components of effective asset management. But no matter how complex the strategy, there should always be a clear, singular goal: to take the steps now to ensure you extract maximum value for your aging assets.

Download our Asset Management Industry Brief

The Components of a Strategy That Optimizes Revenue

How does an asset management strategy drive revenue for commercial airlines and other operators? By using an integrated approach to purchasing and selling, trading, and executing value-add modifications and redeployment. 

You might be wondering why a full-service approach is required when you simply want to ensure your aviation assets are properly managed. At AerSale®, our customers see the benefit of this approach firsthand. We leverage our expertise in MRO, parts sales, and other aspects of commercial aviation services to ensure assets deliver maximum value as they enter their end-of-life phase. We also invest heavily in mid-life aviation equipment, making us expertly positioned to help you make the smartest decisions today to reap maximum value tomorrow. 

AerSale’s integrated in-house capabilities unlock quantifiable value for customers seeking a smarter asset management strategy. Unique in the industry, our approach offers:

  • Aircraft and engine leasing specialists who provide global remarketing and lease administration services to optimize flight equipment "green time" before retirement
  • Airframe and powerplant technical specialists supported by records professionals who ensure our fully documented, cost-efficient maintenance solutions maximize flight equipment service life
  • Aircraft MRO and proprietary engineered Supplemental Type Certificate (STC) modifications capabilities to facilitate aircraft upgrades, conversions, and expedited aircraft redeployment
  • Piece-part MRO capabilities covering all major aircraft electrical and mechanical system components
  • Global OEM and independent MRO materials supply chain to efficiently monetize airframe and engine components
  • Comprehensive spares inventory management programs, including strategically located warehousing, secure preservation and storage, established global shipping logistics, and distribution services
  • Full aircraft storage, disassembly, warehousing, and disposition services covering all major transport category aircraft, engines, and components

As the global fleet continues to grow, it’s never been more critical to extract the most value possible from your aging assets. Trust AerSale to craft and execute a strategy that maximizes revenue during an aircraft’s service life and commands the most return in the acquisition phase.

Recent Posts

Posts by Topic
Subscribe to Blog