How old is too old when it comes to private aircraft? There’s really no one answer, as your aircraft’s performance will depend not only on its age and frequency of use, but also on its make and model.
In one of our LinkedIn polls, we saw a variety of philosophies on aircraft age. The majority have aircraft that are no more than 10 years old, with the overall average around 8.3 years.
One of the most common questions that our clients ask is “When is the ideal window of time to replace an aging aircraft?” It’s good practice to be proactive about your aging aircraft, as a systematic and thoughtful aircraft replacement strategy is important for capital and operational planning.
When aircraft age becomes a consideration for you, there are several aircraft-specific factors that influence a sound replacement strategy. Here are the different considerations you should account for and the aircraft replacement cycle we advise.
Maintenance Costs
Like a house or a car, the older an aircraft becomes, the more maintenance it requires. A new aircraft has various warranties, such as interior, paint, parts/components, engine, and airframe. Out of all of these, the primary driver of maintenance costs is the part/components warranty, which typically expires after 5 years. Once you pass 5 years, maintenance costs can increase 20-40% depending on the aircraft model. Additionally, the higher the number of flight cycles, the sooner your parts will need repair or replacement.
Reliability and Availability
Also, the older an aircraft becomes and the more frequently it’s used, the more likely the aircraft will require unscheduled maintenance. Data shows that an aircraft greater than 15 years old has 2.5 times the maintenance days per year as an aircraft less than 5 years old. As your aircraft ages, your maintenance strategies should also evolve to mitigate some of the reliability risks.
Large Maintenance Event
Another key factor in aircraft replacement strategy is identifying and mitigating the cost and downtime of large maintenance events. The frequency of maintenance is dependent on the aircraft, as well as the requirements set forth by the aviation governing body. Depending on your aircraft model, these large inspections may occur every 6, 8, or 12 years. The cost and downtime can range from $100k for a 10-day maintenance period up to over $500k for a 30+ day period.
Technology Advancements
Technology within the cockpit and cabin continues to evolve and improve at a rapid pace. Avionics improvement technologies like enhanced vision, heads-up display, and synthetic vision have become common in new aircraft. While they’re an added cost, they are key to risk mitigation, reducing pilot workload, and improving situational awareness. Staying aligned with these safety and performance advancements requires either significant modification of aging aircraft ($500k to $1,000k+) or developing a replacement cycle accordingly.
Choosing a Renewal Cycle
All that said, we recommend that you select a renewal cycle that aligns with your organization’s philosophy and appetite for financial risk:
- Conservative: If you want to mitigate as much risk as possible, your organization should replace the aircraft every 5 years to maintain in-warranty benefits.
- Moderate: If some risk is acceptable and your organization is able to support regular maintenance events, you can replace your aircraft every 7 years to mitigate large inspection costs and downtime.
- Aggressive: If your organization is willing to risk necessary technology advancements and larger maintenance costs, then you could reasonably replace your aircraft every 10 years.
Knowing when it’s time to renew aging aircraft is essential for saving costs and promoting safety. Even small maintenance oversights can have significant consequences.
Want to learn more about your aircraft replacement options? Trust in our decades of aviation mastery, holistic perspective, and uncompromising integrity to advise you on the best path forward. Contact VanAllen to learn more about our Fleet Planning services.