Fleet Age vs Insurance and CI

[MuzhikRB]

does fleet (owned) age (14+) influence on to:

1. CI.
2. Insurance amount ?

[JumboShrimp]

does fleet (owned) age (14+) influence on to:

1. CI.
2. Insurance amount ?

1. Fleet age does not affect CI.
2. Fleet age influences Insurance amounts indirectly.  Insurance is based on the value of the aircraft.  So as the aircraft ages, its value declines and with the declining value, the insurance goes down.  Insurance is more directly affected on whether the aircraft is owned or leased.  Leased aircraft has higher insurance than owned aircraft.

One variable that is affected the most by the fleet age is maintenance.  As aircraft gets older, the maintenance becomes more expensive.

[gazzz0x2z]

(.../...)One variable that is affected the most by the fleet age is maintenance.  As aircraft gets older, the maintenance becomes more expensive.

This is far more important than insurance, by the way. Operating an old aircraft is more costly than operating a new aircraft dut to this. However, old aircraft are usually cheaper to lease, and the total costs are not always lower for an old aircraft - at least when you cannot afford to buy.

So, when choosing a fleet profile(not only the type, but also the age), it's important to do some maths. Depending on the situation, old aircraft may very well be more profitable than younger ones. Especially if the model is popular, and the "young" aircraft are prohibitive to lease(A320 comes to mind - brand new birds are really expensive, and leasing them can kill your company - while the old ones are just perfect).

Of course, when you begin to have enough cash to buy, this point is moot : buy new, and keep for a long time(usually 24 years with western good stuff, less if you're playing with communist crap whose maintenance costs skyrocket with age).