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As some of the latest generation of narrowbody aircraft approach veteran status, Aircraft Economics looks at the possibilities and requirements for keeping aircraft in service.
The narrowbody market has historically provided companies involved in modifications and conversions with the majority of their work. Rejuvenation can be classified as mandatory or economic and work associated with narrowbody aircraft falls into both categories. Mandatory programmes are based around meeting regulatory requirements on structures and noise and to a lesser extent on avionics upgrades such as TCAS etc. Economic programmes are designed to extend the life of aircraft, either by reducing recurring costs or enhancing the revenue generation potential. Examples of this are freighter conversion, increased design weights and fuel burn reduction although the latter is more likely to be driven by reengining for noise compliance purposes.
Ageing Aircraft
A market for ageing aircraft work continues to exist but the type of work is evolving as a different generation of aircraft moves into the ageing category. Fifteen years is a generally accepted definition of ageing aircraft and therefore aircraft which were designed under the modern maintenance steering group philosophy (MSG-3) are moving into the category. The on-condition philosophy associated with the MSG-3 procedure means that ageing aircraft work in the conventional sense is diminished for the later generation of aircraft.
Noise
In contrast to the ageing aircraft issue, the noise issue has been dominated by narrowbody aircraft, although this may change as the debate on more stringent requirements than Stage 3 evolves. Narrowbody aircraft which are affected by current noise regulation include DC-9s, 737-200s, 707s, DC-8s and 727s.
Freighter conversion
The modem narrowbody freight market is characterised by the lack of new-build freighters. This possibly reflects the increased difficulty of obtaining sufficient utilisation to offset new aircraft capital costs on the shorter routes which are typically the domain of narrowbody freighters. The 757-- 200 is the only in-service example of a modern purpose built narrowbody freighter and even this aircraft, as built for UPS, is primarily a small package carrier rather than a fully fledged freighter. Boeing Airplane Services' (BAS) recent deal with DHL for 757 freighters suggests that even the manufacturer believes conversion of ex-passenger aircraft is the most economic route.
Boeing 707/720
The first...