Re: Are cargo planes generally old ?

Date:         12 May 99 02:49:08 
From:         "R W Walker" <bwalkerdiespamdie@odyssey.on.ca>
Organization: Skywalker Pangalactic Holdings
References:   1
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Frank Muenker <frank@living-source.com> wrote in article
<airliners.1999.441@ohare.Chicago.COM>...
> Shouldn't cargo airplanes have the same problems/calculations concerning
> fuel consumption, maintenance costs, etc. ?
> This observation might be wrong, but if not: is there any logical
> explanation ?

Yes, operating costs can be higher on older aircraft. There are 2 other
economic considerations however, in their favour.

Cargo aircraft are more likely to fly full, thus lowering the cost per ton
carried. Some passenger operations still fly partially full on occaision,
and must calculate the price per seat to cover expenses in these cases.
However, in short range North American operations lately, this isn't much
of a factor.

The big factor is purchase price. This turns into a financing cost that the
cargo operator must factor in when setting his rates. A big savings in
finance costs can more than offset the hourly direct operating costs. This
is especially true for a small or new carrier, that might be stuck with
higher interest rates.

BW