How to Monetize Your Aircraft Maintenance

In this brief video, Guardian Jet’s Managing Partner Mike Dwyer explains how to monetize your aircraft maintenance over the ownership lifecycle.

 At Guardian Jet, we look at monetizing maintenance and understanding the cost of ownership and the cost of the maintenance as relative to the cost of the airplane.

In a brand-new airplane that costs $50 million in warranty, it’s very insignificant. It becomes very significant in an older aircraft that’s worth $2-5 million. There’s tremendous value in the airframe, but you could have $1-2 million in the next 3-5 years of maintenance that’s coming due. So that’s when we really want to understand it the best.

Certainly, engine programs or self-insuring on the engine overhaul will be the biggest component. But regulatory compliance, future upgrades, and enhancements to the airplane become extremely important when trying to understand how to monetize the maintenance and put that into the lifecycle cost.

If you looked at over a 15-year period, the first 5 years of maintenance would be very flat. The next five years would start to have a relatively shallow incline. And then from 8-15 years, it starts to get “lumpy.” Sorry, that’s not a very sophisticated term, but it’s exactly what happens.

This entry was posted in Aircraft Finance, Aircraft Valuation, Asset Management, Aviation Industry, Business Aviation, Fleet Planning, Guardian Jet, Guardian Jet Learning Center, Maintenance, Ownership and tagged , , , , , . Bookmark the permalink.

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