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Aircraft depreciation life, also known as the recovery period, is the time over which an aircraft's depreciation is accounted for. It's generally estimated to be
Aircraft depreciation life, also known as the recovery period, is the time over which an aircraft's depreciation is accounted for. It's generally estimated to be between 5-25 years, depending on the type of aircraft: Commercial passenger aircraft: 15-25 years Commercial cargo aircraft: 12-20 years Private jets: 5-10 years Assuming airline X and Y would invest in commercial passenger aircraft, both depreciation periods of the two companies are appropriate. With 10 years shorter in period, airline X would have tax advantage with a greater depreciation expense yearly. However, as aircraft investment is a long-term investment and aircrafts' lifetime can be up to 25 years, the depreciation period of company Y is more practical in reflecting the efficiency of using assets to generate revenue as well as more aligns with the industry standard. how do I respond to this post
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