In the News

Excess supply - how hard is it to recycle a jumbo jet?

Graham Watson

17th August 2021

This is a fascinating insight into the market for jumbo jets, with current estimates that nearly 40% of all jets are currently sat idle

How might markets react?

Well, over-supply should drive down the costs of leasing planes, and the price of parts too.

However, for the firms who own planes this might be disastrous: the returns on owning a plane have collapsed and for many firms, scrapping planes, and selling their parts has become more profitable than actually leasing them.

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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