Average Aircraft Fleet Age by aircraft type and Regs Changes/Proposals...B737-3/7 €€€€€13...

24
Aircraft Life After seeing the proposal to lower aircraft life to years, Pritchard & Abbott, Inc. did some research on aircraft life and found data related to commercial jet aircraft and helicopters. From the Aviation/Flying Website there are articles referencing the age of Aircraft. In 1999 article Northwest Airlines the average age of its fleet was 20 years. An update article from 2005 puts the average age of their fleet at 34 years. From Aircraft Value News we found a 2004 article where ATR is seeking to extend the service life of the ATR42 from the typical 25 to 35 or 40 years. In addition the FAA publishes a table showing average fleet ages by aircraft type. This table ranges from 11 years to 68 years with an overall age of 28.7 years From AVBuyer.com we found a 2006 Helicopter Sales Forecast article that helicopters are generally replaced (Not necessarily at the end of their useful life) at between the ages of 16 to 21 years. The same article points out that there are a significant number of operators that keep helicopters 25 years or more if they were purchased new. In a Congressional Budget Report dated 1995 it points out that the US Army has many Vietnam era helicopters many of which will have to be retained for another 20 years. Although this is not an exhaustive study there is some indication that the life for Aircraft (Including Helicopters) should be greater than 20 years. More data would be necessary to make such a recommendation. We see no indications that the life should be shorter than the current 20 years.

Transcript of Average Aircraft Fleet Age by aircraft type and Regs Changes/Proposals...B737-3/7 €€€€€13...

Page 1: Average Aircraft Fleet Age by aircraft type and Regs Changes/Proposals...B737-3/7 €€€€€13 13 B747-2/3 €€€€€30 30 ... American Airlines, American Eagle Airlines,

Aircraft Life After seeing the proposal to lower aircraft life to years, Pritchard & Abbott, Inc. did some research on aircraft life and found data related to commercial jet aircraft and helicopters. From the Aviation/Flying Website there are articles referencing the age of Aircraft. In 1999 article Northwest Airlines the average age of its fleet was 20 years. An update article from 2005 puts the average age of their fleet at 34 years. From Aircraft Value News we found a 2004 article where ATR is seeking to extend the service life of the ATR42 from the typical 25 to 35 or 40 years. In addition the FAA publishes a table showing average fleet ages by aircraft type. This table ranges from 11 years to 68 years with an overall age of 28.7 years From AVBuyer.com we found a 2006 Helicopter Sales Forecast article that helicopters are generally replaced (Not necessarily at the end of their useful life) at between the ages of 16 to 21 years. The same article points out that there are a significant number of operators that keep helicopters 25 years or more if they were purchased new. In a Congressional Budget Report dated 1995 it points out that the US Army has many Vietnam era helicopters many of which will have to be retained for another 20 years. Although this is not an exhaustive study there is some indication that the life for Aircraft (Including Helicopters) should be greater than 20 years. More data would be necessary to make such a recommendation. We see no indications that the life should be shorter than the current 20 years.

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Average Aircraft Fleet Age by aircraft type

Manufacturer ModelAverage Fleet Age (Years)

AEROSPATIALE  ATR-42      18 18ATR-72      14 14

AIRBUS  A300-600      16 16A300X4      25 25A310-2CF      24 24A319-1      11 11A320-1/2      15 15

BEECH  B-1900      12 12BOEING  B-727-1      41 41

B-727-2      30 30B-737-3      19 19B-737-4      17 17B-737-5      15 15B-737-C      27 27B-747-1      36 36B-747-4      16 16B-747F      29 29B-747SP      30 30B-757      16 16B-767-2      23 23B-767-3      16 16B-777      11 11B707-3C      39 39B737-1/2      29 29B737-3/7      13 13B747-2/3      30 30

BRITISH ACFT. CORP.   METROIII      21 21RJ-200      11 11RJ-85      11 11

BRITISH AEROSPACE  BAE-ATP      17 17BAE146-1      22 22BAE146-2      22 22BAE146-3      19 19

CANADAIR LTD.   CL65-600      11 11CONVAIR   CV-580      53 53

CV-600      59 59CV-640      54 54

DEHAVILAND   DHC-7      30 30DHC8-100      18 18DHC8-200      11 11

DOUGLAS  DC-10-1      32 32

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DC-10-15      27 27DC-10-3      29 29DC-10-4      34 34DC-10-F      29 29DC-3      68 68DC-6A      51 51DC-6B      52 52DC-8-5      43 43DC-8-5F      42 42DC-8-61      40 40DC-8-62      39 39DC-8-63      38 38DC-8-6F      39 39DC-8-71      40 40DC-8-73      39 39DC-8-73F      38 38DC-9-10      41 41DC-9-15F      41 41DC-9-20      40 40DC-9-30      37 37DC-9-40      38 38DC-9-50      30 30DC/MD-80      20 20MD-11      14 14MD-87      19 19MD-90      12 12

EMBRAER  EMB 110      26 26EMB-120      19 19EMB-145      11 11

FOKKER  F-27      35 35F-28      23 23F28-1000      35 35F28-4000      23 23FOKR 100      16 16

LOCKHEED   L-1011      31 31L-1011      31 31L-188A      49 49L-188A      49 49L-382E      37 37L-382E      37 37L1011-5      27 27L1011-5      27 37

NIHON   YS-11      37 37SAAB  SF-340      14 14

28.70588

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TABLE E-8 Average Age of U.S. Commercial Aircraft: 1993-2003

Years, unless noted

Excel | CSV

NOTES: Average aircraft age is based on the year that an aircraft was delivered to the original owner from the manufacturer and does not reflect the age of the engines or other parts that may have been replaced more recently. Commercial aircraft are aircraft of air carriers providing scheduled or nonscheduled passenger or freight service, including commuter and air taxi on-demand services. Major airlines includes only commercial airlines with operating revenues greater than $1 billion annually. In 2003 they were: America West Airlines, American Airlines, American Eagle Airlines, ATA Airlines, Alaska Airlines, Continental Airlines, Delta Airlines, DHL Airways, Federal Express, Northwest Airlines, Southwest Airlines, United Airlines, United Parcel Service, and US Airways.

SOURCE: U.S. Department of Transportation (USDOT), Research and Innovative Technology Administration (RITA), Bureau of Transportation Statistics (BTS), calculations using data from USDOT, RITA, BTS, Form 41, Schedule B -43, 1993 -2003.

BTS Home > Publications > Transportation Statistics Annual Report > 2006 > Chapter 2

  All commercial aircraft Major airlines aircraft Major airlines share of commercial aircraft (%)

1993 11.6 10.4 82.1

1994 12.2 10.8 79.9

1995 12.4 11.3 76.1

1996 13.2 12.3 72.5

1997 13.5 12.4 78.7

1998 13.6 12.3 77.8

1999 12.9 11.8 78.5

2000 12.8 11.8 78.8

2001 12.3 11.6 82.9

2002 11.7 11.7 77.8

2003 11.0 11.7 72.9

Research and Innovative Technology Administration (RITA) • U.S. Department of Transportation (US DOT) 1200 New Jersey Avenue, SE • Washington, DC 20590 • 800-853-1351 • E-mail RITA Accessibility | Disclaimer | FedStats | Freedom of Information Act | No FEAR Act | OIG Hotline | Privacy Policy | RSS | USA.gov | White House | Wireless Plug-ins: PDF Reader | Flash Player | Excel Viewer | PowerPoint Viewer | Word Viewer | WinZip

Page 1 of 1BTS | TABLE E-8 Average Age of U.S. Commercial Aircraft: 1993-2003

08/21/2008http://www.bts.gov/publications/transportation_statistics_annual_report/2006/html/chapter_02/ta...

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FAA.gov Home

 Average Aircraft Age

 Average age of aircraft as reported by select Federal Aviation Regulation 121  air carriers to Bureau of Transportation Statistics (BTS)

The information on this page is not current. It is produced using calculations from information that is over eight years old and cannot be updated due to the source of the data.

Manufacturer Model Average Fleet Age (Years)

AEROSPATIALE  ATR-42      18

  ATR-72      14

AIRBUS   A300-600      16

  A300X4      25

  A310-2CF      24

  A319-1      11

  A320-1/2      15

BEECH  B-1900      12

BOEING  B-727-1      41

  B-727-2      30

  B-737-3      19

  B-737-4      17

  B-737-5      15

  B-737-C      27

  B-747-1      36

  B-747-4      16

  B-747F      29

  B-747SP      30

  B-757      16

  B-767-2      23

  B-767-3      16

  B-777      11

  B707-3C      39

  B737-1/2      29

  B737-3/7      13

  B747-2/3      30

BRITISH ACFT. CORP.   METROIII      21

  RJ-200      11

  RJ-85      11

BRITISH AEROSPACE  BAE-ATP      17

  BAE146-1      22

Page 1 of 3Federal Aviation Administration - Aircraft Fleet Age

08/21/2008http://av-info.faa.gov/GetFleetAge.asp

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  BAE146-2      22

  BAE146-3      19

CANADAIR LTD.   CL65-600      11

CONVAIR   CV-580      53

  CV-600      59

  CV-640      54

DEHAVILAND   DHC-7      30

  DHC8-100      18

  DHC8-200      11

DOUGLAS   DC-10-1      32

  DC-10-15      27

  DC-10-3      29

  DC-10-4      34

  DC-10-F      29

  DC-3      68

  DC-6A      51

  DC-6B      52

  DC-8-5      43

  DC-8-5F      42

  DC-8-61      40

  DC-8-62      39

  DC-8-63      38

  DC-8-6F      39

  DC-8-71      40

  DC-8-73      39

  DC-8-73F      38

  DC-9-10      41

  DC-9-15F      41

  DC-9-20      40

  DC-9-30      37

  DC-9-40      38

  DC-9-50      30

  DC/MD-80      20

  MD-11      14

  MD-87      19

  MD-90      12

EMBRAER  EMB 110      26

  EMB-120      19

  EMB-145      11

FOKKER  F-27      35

Page 2 of 3Federal Aviation Administration - Aircraft Fleet Age

08/21/2008http://av-info.faa.gov/GetFleetAge.asp

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  F-28      23

  F28-1000      35

  F28-4000      23

  FOKR 100      16

LOCKHEED   L-1011      31

  L-1011      31

  L-188A      49

  L-188A      49

  L-382E      37

  L-382E      37

  L1011-5      27

  L1011-5      27

NIHON   YS-11      37

SAAB  SF-340      14

firstgov.gov | Privacy Policy | Web Policies & Notices | Site Map | Contact Us | Frequently Asked Questions | Forms

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Page 3 of 3Federal Aviation Administration - Aircraft Fleet Age

08/21/2008http://av-info.faa.gov/GetFleetAge.asp

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Home Fatal Events Airline Complaints Features

Average Fleet Age for Selected U.S. Carriers The following estimated average fleet ages for selected U.S. is based primarily on data provided by the FAA and by AirFleets.net. An aircraft's age is based on the number of years since the aircraft's production.

Airline Average Age Fleet Size

Air Wisconsin 7.0 77

AirTran 4.5 138

Alaska 8.6 119

Allegiant Air 17.8 35

Aloha 17.9 25

American 14.7 656

American Eagle 7.8 293

ATA 14.4 29

Atlantic Southeast Airlines 6.5 161

Chautauqua Airlines 5.9 119

Colgan 16.4 44

Comair 8.5 144

Compass 0.2 8

Continental 10.1 367

Delta 13.8 445

ExpressJet 6.1 274

Frontier 3.8 61

Hawaii 9.7 29

Horizon 5.9 72

JetBlue 3.2 137

Mesa 6.8 122

Mesaba 8.1 70

Midwest 10.6 38

Northwest 18.5 366

Piedmont 17.2 48

Pinnacle 4.5 140

PSA 3.6 49

Republic 2.0 53

Shuttle America 2.5 43

  

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Page 1 of 2Average Fleet Age for Selected U.S. Carriers

08/21/2008http://www.airsafe.com/events/airlines/fleetage.htm

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Copyright © 2000-2008 AirSafe.com, LLC

FAA Certificate and Fleet Information for Selected Carriers

Notes and General Disclaimers The data represents only an estimate of the age and size of that airline's fleet and is not a measure of the risk of flight on that airline. The data was last updated in the last quarter of 2007. An airline's fleet is generally made up of different aircraft models and the age of individual aircraft within an airline or even within a single aircraft model within that airline may vary greatly.

Please review the AirSafe.com Disclaimer section for insights into interpreting this data.

Fatal Events by Airline Fatal Events by Model Fatal Event Rates by Model Accidents by Model

Average Fleet Age for Selected U.S. Carriers http://airsafe.com/events/airlines/fleetage.htm -- Revised: 3 June 2008

Southwest 9.8 523

Spirit 3.3 40

Trans States 7.5 48

United (including Ted) 12.7 455

US Airways 12.2 360

Virgin America 1.0 14

Page 2 of 2Average Fleet Age for Selected U.S. Carriers

08/21/2008http://www.airsafe.com/events/airlines/fleetage.htm

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August 13, 2008

Louisiana Tax Commission

5420 Corporate Blvd., Suite 107

P. O. Box 66788

Baton Rouge, LA 70896

Dear Commissioners;

As a member of the Oil and Gas Committee of the Louisiana Assessors

Association, it is my pleasure to submit to you the following facts which have

prompted this committee to make the subsequent recommendations in rebuttal

to the industries’ recommendations to the Louisiana Tax Commission for

Chapter 15 the 2009 aircraft schedule particularly pertaining to helicopters. After reviewing the proposal to lower aircraft life to years, our

consultants Pritchard & Abbott, Inc., performed some research on aircraft life

and found data related to commercial jet aircraft and helicopters.

From the Aviation/Flying Website there are articles referencing the age

of Aircraft. In 1999 article Northwest Airlines the average age of its fleet was

20 years. An update article from 2005 puts the average age of their fleet at 34

years.

From Aircraft Value News we found a 2004 article where ATR is seeking

to extend the service life of the ATR42 from the typical 25 to 35 or 40 years.

In addition the FAA publishes a table showing average fleet ages by

aircraft type. This table ranges from 11 years to 68 years with an overall age of

28.7 years

Page 17: Average Aircraft Fleet Age by aircraft type and Regs Changes/Proposals...B737-3/7 €€€€€13 13 B747-2/3 €€€€€30 30 ... American Airlines, American Eagle Airlines,

From AVBuyer.com we found a 2006 Helicopter Sales Forecast article

that helicopters are generally replaced (Not necessarily at the end of their useful

life) at between the ages f 16 to 21 years. The same article points out that there

are a significant number of operators that keep helicopters 25 years or more if

they were purchased new.

In a Congressional Budget Report dated 1995 it points out that the US

Army has many Vietnam era helicopters many of which will have to be retained

for another 20 years. Although this is not an exhaustive study there is some

indication that the life for Aircraft (Including Helicopters) should be greater

than 20 years.

Therefore we see no indications that the aircraft life should be shorter

than the current 20 year period.

Additionally the industry proposes a “take-off” or departure factor to be

considered in the formula in addition to shorting the life of aircraft in

determining value.

By adding a departure factor in the equation leaves much room for error

and interpretation and could create an environment which may lead to vast

differences in the valuation process. Uniformity should always be a factor to be

considered and adding such a departure factor would create much confusion and

uncertainty. Imagine the confusion which could result if such a factor were

used in determining watercraft values. The assets departure schedule should

not be a factor in determining value.

Therefore the assessors feel that there should be no change in the aircraft

schedule chapter 15.

Sincerely,

Michael H. Martin

Chairman

Watercraft Committee

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August 13, 2008

Louisiana Tax Commission

5420 Corporate Blvd., Suite 107

P. O. Box 66788

Baton Rouge, LA 70896

Dear Commissioners;

As a member of the Oil and Gas Committee and Chairman of the

Watercraft Sub-committee of the Louisiana Assessors Association, it is my

pleasure to submit to you the following facts which have prompted this

committee to make the subsequent recommendations to the 2008 Louisiana

Tax Commission for the 2009 Watercraft Schedule.

The taxation of watercraft in Louisiana historically was a controversial

issue and the subject of much litigation and legislation in the 1980’s. As a

result of much work between the assessors and marine industry a watercraft

schedule was created and adopted which resulted in a uniform method of

determining the value of watercraft.

A day rate/base cost multiplier schedule was created and periodically

reviewed and trended upward to insure uniformity and to keep current with

the rising cost of construction and sales prices of watercraft. This

methodology was accepted by both the assessors and marine industry.

The Offshore Marine services association (O.M.S.A.) became very

active and helpful in surveying its members and obtaining from them an

annual average day rate figure and utilization rate for the various marine

industry watercrafts. The association would then provide to the assessors a

copy of the said survey which was used to complete the equation necessary

to adequately value watercraft for tax purposes,

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Annually, the coastal assessors would meet with the President of

O.M.S.A., Mr. Robert Alario, who would provide us with the survey and

discuss with us the marine industries thoughts and concerns pertaining to ad

valorem taxes and give some insight of the forthcoming industry economic

indicators.

The survey which was sent every January to O.M.S.A. members

would reflect the day rate and utilization data for the previous year (i.e.

2001survey reflected 2000 day rate and utilization etc.).

Realizing the importance of the annual survey, Mr. Alario would

encourage the members of O.M.S.A. to provide the information to us. This

practice continued until 2005 the year after Mr. Alario retired.

Mr. Ken Wells succeeded Mr. Alario as O.M.S.A.’S president in

2005. When we held our annual meeting with Mr. Wells in May of 2005, he

indicated at that meeting that it probably was not necessary for us to

continue to meet on an annual basis. Although he provided to the assessors

the survey information for 2004, we have not been provided with an update

nor have we had another meeting with the organization.

When Mr. Wells was contacted in 2006 for the survey (which reflects

the 2005 data), he indicated that the survey was sent to the members but he

received no response, and indicated that we probably would not receive the

requested information. As could be expected this placed us in a very

difficult position.

Therefore the equation has been in disarray since the last verified

information was obtained. The schedule did not change from 2005 to 2006.

We were successful in obtaining a 20% day rate increase for the schedule in

2007, however we were not granted another increase in 2008. The

commission indicated that although we were granted an increase for 2007,

they did not feel that we provided sufficient documentation to warrant an

increase for the 2008 schedule.

Since the marine industry has failed to provide to the assessors a

current day rate schedule, we are now faced with basically the same

predicament for the 2009 schedule. The assessors have at their disposal

many ways to acquire day rate information for the various vessels from

various sources. This includes obtaining information from local vessel

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owners, marine surveyors, oil companies and trade magazines etc. The

down side is that the avenues available to obtain this information vary

greatly and would undoubtedly create uneven valuations within the parishes.

Therefore we are requesting that the commission adopt the 2008

day rate for the day rate portion of the 2009 table. Although we realize

that the 2008 rate is low by most accounts, the adoption of the 2008 day

rate schedule will maintain uniformity of value throughout the parishes.

It is our intent to try and re-establish a meaningful relationship with the

marine industry next year so that a more current and accurate day rate

can be established.

We are also and more importantly requesting this commission to

adopt the attached tables, which our consultants have prepared, for the

watercraft rules and regulations for 2009. The table uses the 2008 day

rate scheduled (as requested above) and trends forward the 2008 values

from 2003 (the last update) to present using the Marshall and Swift

trend factors. This update establishes a slight increase in the base cost

of the specific watercraft. Based on our research this increase

represents only a very slight rise in the values as compared to the actual

cost of watercraft market values.

Should you have any further questions please feel rere to contact my

office.

Sincerely,

Michael H. Martin

Chairman

Watercraft Committee

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VESSEL CLASS

TABLE

2009 LAA

Day Rate

BASE COST

Multiplier

2008-2003

.86

2002-1998

.72

1997-1993

.58

1992-1988

.44

1987 & earlier

.30

Offshore Crew

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

60’-70’

60-70 crew

$600

$401,000

1.10

379

318

256

194

132

85’-99’

85-99 crew

$1000

$535,000

1.13

520

435

351

266

181

100’-119’

100-119

crew

$2500

$1,137,000

1.33

1301

1089

877

665

454

120’-140’

120-140

crew

$2900

$1,606,000

1.23

1699

1422

1146

869

593

141’-165’

141-165

crew

$4000

$3,078,000

1.17

3097

2593

2089

1585

1080

Utility Vessel

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

<120’

100-119

utility

$2300

$1,137,000

1.27

1242

1040

838

635

433

121’-140’

120-140

utility

$2500

$1,606,000

1.13

1561

1307

1053

799

544

>141’

141-165

utility

$4000

$3,078,000

1.17

3097

2593

2089

1585

1080

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VESSEL CLASS

TABLE

2009 LAA

Day Rate

BASE COST

Multiplier

2008-2003

.86

2002-1998

.72

1997-1993

.58

1992-1988

.44

1987 & earlier

.30

Supply Vessel (OSV)

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

140’-159’

705.A

$4500

$1,801,000

1.14

1766

1478

1191

903

616

160’-179’

705.B

$5000

$3,088,000

1.21

3213

2690

2167

1644

1121

180’-199’

705.C

$6500

$4,117,000

1.43

5063

4239

3415

2590

1766

200’-219’

705.E

$8500

$6,948,000

1.71

10218

8554

6891

5228

3564

220’-230’

705.F

$10000

$8,235,000

1.93

13668

11443

9218

6993

4768

>231’

705.G

$11250

$10,474,000

2.11

19006

15912

12818

9724

6630

AHT

Tug/Supply

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

180’-199’

705.D

$6500

$4,825,000

1.43

5934

4968

4002

3036

2070

200’-219’

705.E

$8000

$6,948,000

1.64

9799

8204

6609

5014

3418

220’-230’

705.F

$14000

$8,235,000

2.50

17705

14823

11941

9059

6176

>231’

705.G

$16300

$10,474,000

2.83

25492

21342

17192

13042

8892

Page 23: Average Aircraft Fleet Age by aircraft type and Regs Changes/Proposals...B737-3/7 €€€€€13 13 B747-2/3 €€€€€30 30 ... American Airlines, American Eagle Airlines,
Page 24: Average Aircraft Fleet Age by aircraft type and Regs Changes/Proposals...B737-3/7 €€€€€13 13 B747-2/3 €€€€€30 30 ... American Airlines, American Eagle Airlines,

VESSEL CLASS

TABLE

2009 LAA

Day Rate

BASE COST

Multiplier

2008-2003

.86

2002-1998

.72

1997-1993

.58

1992-1988

.44

1987 & earlier

.30

Offshore Towing

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

140’-159’

705.A

$3300

$1,801,000

0.97

1502

1258

1013

769

524

160’-179’

705.B

$5000

$3,088,000

1.21

3213

2690

2167

1644

1121

180’-199’

705.C

$6250

$4,117,000

1.39

4921

4120

3319

2518

1717

200’-219’

705.E

$8750

$6,948,000

1.75

10457

8754

7052

5350

3648

220’-230’

705.F

$9000

$8,235,000

1.78

12606

10554

8502

6450

4397