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Aircraft Asset Assessment

November 26, 2007

Market Presence. The surprise is that there are still DC10-30s in service. Gone are such flag carrier names as British Airways, SAS, Sabena, Swissair, Lufthansa, MAS, Northwest, Thai, PAL to be replaced by Omni Air and Biman. The operator base of the -30, a prime consideration when assessing current and future values, has declined between year- end 1990 and 2006 from 32 to six. The DC10-30 now possesses the capital cost and market attraction for greater ad hoc charter use but the cost of a D check is around $3.2 million and a relatively modest engine overhaul $1.5 million per engine. The landing gear, featuring the center line unit, can also add considerably to the overhaul cost. The maintenance status of the more elderly -30s can therefore represent 100 percent of the total value compared to less than 10-15 percent for a similar capacity but younger widebody twin.

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