Aircraft depreciation, residual values and useful economic lives have shifted in the past 35 years, says IBA

How realistic is depreciation of an aircraft over a 20 or 25 year life when aligned to a percentage of original cost? This was a question asked at a recent joint breakfast seminar entitled ‘Emerging Accounting and Valuation Challenges’ hosted by KPMG Dublin and independent aviation consultancy firm IBA. Addressing a knowledgeable audience of airline, leasing, finance, tax, and legal executives at the event, Dr Stuart Hatcher, Chief Intelligence Officer at IBA, introduced a different perspective to the topic by looking at the economic life of the aircraft, as well as its residual values. He said “Aircraft economic lives have