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A practical approach to support end-of-life commercial aircraft parking, market relocation, retirement and decommissioning strategic decisions.

Authors :
de Oliveira Junior, Flavio Soares
Fernandes, Elton
Bahiense, Laura
Grandi, Carlos Moacir
Source :
International Journal of Production Research; Sep2021, Vol. 59 Issue 17, p5144-5163, 20p, 2 Diagrams, 2 Charts, 9 Graphs
Publication Year :
2021

Abstract

This research effort is dedicated to develop and test a mathematical approach to estimate the optimal aircraft age to make decisions about its withdrawn from service, market relocation, or starting its retirement and decommissioning processes. Our method consists of a cost-benefit financial analysis based on the expected revenue from the aircraft returning to operations and the aircraft recovery process to support end-of-life decisions. The core contribution of this research is the possibility of systematically analyse opportunities to return parked aircraft to active service, considering reasonable scenarios of operating revenue improvements or operating cost reductions, postponing the aircraft retirement and decommissioning decision. It is important to highlight that only financial concerns of the end-of-life aircraft problem were analysed. Considering this managerial context, the estimation of the aircraft parking and retirement costs, the recovery of the operating revenues from its market relocation and the recovered values from its disassembly and dismantling may influence these companies' aircraft fleet planning in a well-supported manner. This research intends to fulfill the gaps in the literature regarding commercial aircraft costs and revenues incurred during its end-of-life phase, aiming to estimate how much they affect its total cost of ownership, considering aircraft owners' and operators' decision-making contexts. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
00207543
Volume :
59
Issue :
17
Database :
Complementary Index
Journal :
International Journal of Production Research
Publication Type :
Academic Journal
Accession number :
152096935
Full Text :
https://doi.org/10.1080/00207543.2020.1774091