PPRuNe Forums - View Single Post - AF66 CDG-LAX diverts - uncontained engine failure over Atlantic
Old 21st Nov 2017, 09:51
  #494 (permalink)  
Torquelink
 
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Given the overall situation with the A380 it would be interesting to know at what point it would become more economical to write off the aircraft? The lease runs ten years and Air France are currently not investing in the cabins. They need to return the aircraft in good condition which may be tricky given the event. An insurance loss followed by parting out must be being considered.
The aircraft is insured to a defined value which declines at an agreed rate over the years: it has no relation to whatever the actual current market value of the aircraft is at any point in time. In this instance, as in the case of the QF A380, the costs of the repair will be substantially less than the insured hull value so no insurer would agree to a write-off followed by part out.
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