To date our trading team has traded in excess of $2 billion of commercial aircraft manufactured by Airbus, ATR, Boeing, Bombardier, Embraer, Fokker and SAAB.
Repurposing has climate emissions credit bennefits:
Repurposing monetizes climate emissions credits disrupted by Coved, the climate change crisis, Black Swan (one of) events. Air transport is looking to cut costs. One way is aircraft repurposing.Repurposing climate emissions reduction:Aviation repurposing is taking an aircraft and using it for something beyond what was originally intended. It can mean upgrades to existing aircraft, engines, or equipment, to improve payload/range or fuel burn efficiency without the expense of new aircraft. This has climate emissions benefits because, an aircraft owner can generate tradeable emissions credits = $ savings. Repurposing reduces investment costs:New technology is costly, & offers more efficient & profitable aircraft. An airline may not be able to acquire the new technology due to funding. But now air transport has detached from the broader economic recovery. Repurposing may cut investment cost but heighten code-red risks.Due to technology changes, it's expensive to keep up with aircraft evolving. Evolutionary change rate will move to revolutionary replacement technologies.
The short time available to comply with ICAO CORSIA scheme requirements, elevates implementation to Code-Red levels. Aircraft technology will undergo radical rapid changes, as early as 2024. To reduce investment risk, is to repurpose, by converting aircraft to cargo, firefighting, military, or R & D apps.
A historical review for replacement of B727-100/200 shows the introduction of B737/DC9s, coupled with spikes in fossil fuel costs, forcing B727 conversion to executive types & freighters. Repurposing reduces operating costsRepurposing can cut overall costs in several ways. • Eliminates need to purchase new equipment vs upgrades on current aircraft
• Cuts down on upgrade costs. Post 2012 type certification introduces continual upgrading aircraft technology. Repurposing helps airlines/lessors spend less on new aircraft & lowers GHG output, & saves cash for other purposes.Repurposing implementation:Repurposing can be used in several ways. Some examples of repurposing:• A case of heavy corrosion, & heavy check pending. Traffic is rebounding, and the capacity of the affected aircraft is insufficient for current needs. The aircraft owner could spend millions on new equipment, or repurpose the aircraft to fire fighter mode. In a climate crisis, where forest fires are rampant, this is a good solution for fire suppression • An airline must comply with environmental requirements, and an in-service aircraft may not comply with new GHG emission standards. Strong pax demand is in place, so, if able, the operator increases seat density of other aircraft & can sell the un-compliant aircraft for decarbonization, to recover reconfiguration costsSuccessful repurposing :There are many types of improvement processes. Many successful companies have repurposed equipment & labor, through elimination of "process" stepsWaste reduction creates emissions credits. Airlines, lessors, MROs, OEMs & Tier Suppliers, must cut costs & eliminate waste to stay in business. Implementing ADs can be costly. Repurposing can cut costs, allowing upgrades of existing aircraft to meet an owner's needs. The upgrade may be eligible for carbon emission credits. ________________________________________
Please contact us if you would wish to participate on the PMA type certification, component recertification, or the buy/sell side of our decarbonization program.