The global market for aircraft dismantling is expected to rise in value this year.
According to a new study by the Aircraft Fleet Recycling Association (AFRA), the market will be worth US$80 million in 2014, as airlines revamp their fleets and get rid of older planes.
The study said that the industry is seeing a “rapid increase in the number of aircraft reaching the end of their economic life”, which presents “considerable opportunities” for the dismantling and recycling industry. Industry operators predict that between 1,200 and 1,800 aircraft will need to be dismantled over the next three years.
This will also make almost US$3.2 billion worth of aircraft parts available to the commercial aviation industry.
“This study underscored the impact that currently high levels of aircraft retirements is having on the aftermarket supply chain, especially for mature fleets,” said David A. Marcontell, president & chief operating officer of TeamSAI, which conducted the survey for AFRA. “Put differently, there are US$3.2bn worth of alternatives to new parts or expensive repairs out there.”
The rising cost of jet fuel and the emergence of new, more efficient aircraft models entering the market, is currently accelerating the retirement of older aircraft.