Keeping expensive assets flying isthe first rule for reducing asset-holding cost. A crude rule of thumb is that each extra day of maintenance downtime is equivalent to the daily cost of leasing the asset undergoing MRO, which works out to about .03% of the asset’s purchase price. For example, an extra week of downtime for a $10 million engine would cost $21,000, for a $40 million jet about $84,000. True cost depends on airline circumstances and options and can be much greater. ...

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