It is estimated that almost 12,000 aircraft will be retiring in the coming two decades, hence aircraft recycling offers vast opportunity for effectively expanding the aerospace business. The focus on environmental issues and landfill regulation mount further influenced the asset owners to look forward to efficient, revenue building and environmentally sound methods to dispose aircraft. New strategies are continuously discovered to ensure efficiency in the activities of distribution, dismantling, recycling, etc. of aircraft.
Enumerable developments have taken place in this sector. Previously while the aircraft dismantlers used to wait for approximately 20 to 25 years for the aircraft to fall out of activity it has been observed presently that the aircraft dismantlers are looking forward to younger and more expensive aircraft. This trend is believed to bear an increased level of benefit for the dismantlers. It is important to note here that almost 40% of the airlines’ operating cost goes on fuel burn accounting. This is one of the main reasons attributing to aircraft leaving their services at a younger age and getting replaced by newer and more fuel efficient models. Again there are many countries like Indonesia who have restricted the age of the aircrafts allowed to operate in the country, thereby giving much needed impetus to the aircraft recycling industry.
Given the present condition and onset of the demand for younger and more fuel efficient aircraft, industry experts foresee a generous increase in the market for aircraft recycling. But as they say no work is without challenges, same is with the aircraft recycling industry. It is one of the major challenges for them to convince the asset owners that the aircraft is already reached the age of its working life. Apart from the industry challenges, the aircraft dismantling industry is also faced with increased level of competition in the market today. Nevertheless the fact that the industry is growing and is offering many lucrative opportunities to the ones operating within is a fact most undeniable.