Since the 1990s, 200 jets originally owned and operated by Chinese airlines, with an average age of 16.8 years, have been sold to foreign companies, nearly 90 percent of them are passenger aircrafts. Over the same period, more than 140 passenger aircrafts originally operated by Chinese airlines, with an average age of 18.5 years, were converted to cargo. Most of them were older models such as the A300, 737 Classic, 757 and MD-11, while only four were newer 737NG models. In addition, just over 130 aircraft have been permanently retired from Chinese airlines, with an average age of 17.2 years.
Over the next 20 years China will have nearly 2500 aircraft, of which about 550 will be modified to cargo aircrafts, therefore left about 2000 aircrafts will be retired. Over the next five years, more than 200 737NG aircraft with current age of 13 years or more (average age 15.6 years) will reach the average retirement age of 17.9 years, while nearly 280 A320ceos with current age of 12 years or more (average age 15 years) will reach the average retirement age of 17.1 years. As a result, for these two aircraft types alone, the total number of potential aircraft in the retirement age range already exceeds the total number of aircraft that Chinese airlines have retired, sold or converted from passenger to cargo.
Second-hand aircraft valuation is still waiting for the domestic aviation market financial leasing companies explore and develop, the sudden global epidemic at the end of 2019 has brought many uncertainties to the future value trend of aircraft in service. Aircraft value evaluation, as a prerequisite for airline asset optimization, is bound to receive more attention.
When a large number of old aircraft retire, aircraft asset management will develop towards the whole life management of aircraft, focusing on the whole process of maximizing utilization, value and industry. The importance of aircraft value management will also be further revealed.