Why Airplanes Are Still Worth Millions After They Stop Flying

When airplanes are retired, many of them end up stripped for parts that are worth millions of dollars. Almost every component from engines to landing gear. Those parts are in high demand - Boeing and Airbus are behind on deliveries of new aircraft and sold out of planes through the latter part of the decade, just as airlines are trying to capitalize on a resurgence in bookings. What's left over often ends up crushed for scrap metal but parts of the planes are sometimes turned into high-end furniture or even keychains.
The used-aircraft parts trade is a small but important part of global spending on airplane maintenance, repair and overhaul, which Oliver Wyman expects to reach $94 billion this year.
CNBC visited Ascent Aviation Services and Ecubed in the Arizona desert to see what happens to airplanes when they land for the last time.
Chapters:
00:00 - Introduction
01:34 - Airplane Retirement
03:07 - How It Works
06:25 - Business Case
08:00 - What's Ahead
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Why Airplanes Are Still Worth Millions After They Stop Flying

[@ckm-mkc]

I did an acquisition analysis of one of these aircraft parts businesses years ago, they are incredibly profitable and somewhat of opaque in their operations. Their inventory value is often in the billions of dollars. The biggest thing is the cost of holding, refurbishing & tracking parts, with length storage time driving underlying profitability.

[@mrwaterschoot5617]

it cost real big costs for making new parts. one big issue for not going longer with the apollo moon ladings was to save rocket engines to get to sky lab and eventually to the international space station. america lost the space race temporarily. we got to the moon and back as jfk promised or set the goal of new year 1970. america made it there with less than a half year to spare. and we beat the soviet union or cccp or russians. but with sky lab the american lab crashed and burned into the Indian ocean. russia had similar issues. with the space shuttle we had some crash and burns. the russians had a burran (?) clone of the space shuttle that never saw flight. there is more space history in the space race. it was russian vs american. now it is an international and private space race. ask elon musk he launched a testa car and a sir elton john space man called rocket man. big question is it a high schooler science project or will it turn and burn into more space junk. a newer frontier with 90÷ year old william schatnrr the star trek captain kirk. good night easter sunday 2023

[@thor.halsli]

Who is the main clientele for parts like this? Arent they worried about metal fatigue in the parts etc? Or is it just really good quality parts so it's not an issue? Or is the very important parts like landing gear recycled and less important parts reused? I'm a dummy just wondering

[@christerry1773]

Any idea what percentage of aircraft are crushed and smultered? Given the number of aircraft that exist, places like this would run out of room pretty after several years

[@robertrobert3569]

00

[@mrwaterschoot5617]

also costs of setup for producing single production run or prototype parts is the same as if you produce many of the same parts. the setup costs for one is the same or one is the same for a hundred and one. with more part run results in lower per part setup cost. a principle from cost accounting 101.

[@angelbulldog4934]

One of my brothers, USAF Ret., worked at the Boneyard for several years before he died. He didn't talk about it much, so thank you for this video.

[@mrwaterschoot5617]

i saw people at work restoring vintage planes and other aircraft to new or better than new condition for historic preservation of a past time. this weekend is memorial day and semi start of end of school and start of summer and good stuff. for some it end on one thing and for some not so good. case and point. cazenovia college is closing with 2023 be the last year of service of one year short of 200 years of business. congrats to the current year and past year grads. the those in transition wishes good luck in this transition period. while having a memorial day picnic please say a prayer of thanks to your god or spiritual divine creator for those who predeceased us today. we now call the a fitting memorial of our past.

[@rolandalfonso6954]

This was wonderful.

[@thunderb00m]

Isnt this a good thing? Instead of making new stuff and just melting down old stuff, we are reusing perfectly usable stuff. Also, recycling is the worst case. The first two Rs and reduce and reuse for a reason.

[@alieffauzanrizky7202]

Airplane skin keychains (while sometimes expensive) is a cool thing to have though.

[@tweezerjam]

I learned the three r’s at a school assembly in 1988. And here we are still struggling to get the message across to most people.

[@mrwaterschoot5617]

correction i have a minor dyslexia condition. you mean what i know. it should have been a canada history production that shows up on our usa history channel.

[@jeffw8218]

Of course it’s a good thing, that’s why most of their parts are reused and refurbished. Some of the parts go right back to the assembly line for new aircraft’s.

[@MrSupercar55]

I was told the 5 R’s. Recycle, reuse, repair, repurpose, reduce.

[@user-rr7vq4xk1b]

Airplanes are generally amazing machines, so this is sad to see. I love aeroplanes! Great video.

[@danicalifornia505]

Would you do an episode on the seized cars, planes, and other large scale equipment that is sold at auction by both banks and governments?

[@spaceace1006]

I visited the Air Museum in Pima AZ back in 2000! It's close to the Boneyard!

[@javerikr]

Thanks @CNBC.

[@doct0rnic]

Unbelievable how much use those planes have gotten

[@hyperion7172]

Genuinely interesting 🤔 thank you

[@blakem9109]

Old planes would make a really cool Airbnb.

[@MrSupercar55]

Some are used exactly that way, and some are converted into houses that people live in permanently. When it’s time to move outta my parents house, I think I’ll look into doing just that.

[@kristmalacs7299]

Fascinating..i always wonder about that. Now i have the answer

[@Aeronaut1975]

6:03 *TRANSLATION: "Whereas metallic airframes can be melted down and re-used, composites components can't, meaning that almost all of the airframe of modern jets ends up in landfill".

[@zapfanzapfan]

An engine cowling can become an awesome Jacuzzi.

[@MrSupercar55]

Good tip. Duly noted.

[@zapfanzapfan]

@@MrSupercar55 Kevin McLeod (Grand Designs) did that in a series where he built a cottage with only scrap and recycled material.

[@BaronVonQuiply]

I'd heard elsewhere that used plane parts are considered a high liability, however that may have been referring to private planes and the airlines certainly have the resources to validate parts. The will the to spend the cash to do so... eh... not so much. If a plane crash costs a dollar less than proper upkeep, we're holding funerals.

[@frequentlycynical642]

A bit more sophisticated than the old Pick Ur Part!

[@ironclay3939]

*Comment Number 3* Question: "Out of the 10 ideas I came up with on short notice, Which Idea did you Love the Most . . . and I'm Biased as hell so please don't pick Narco-Subs out of 747's ... OK you can't get better money for an old aircraft but I want you to make your own mind up ... Out of the 10 ideas I came up with on short notice, Which Idea did you Love the Most - and can you tell me why you went for Narco-Subs?

[@timlovelee]

Great topic, well done video. 💯

[@mrbond9882]

I thought Mike Ehrmantraut from BB & BCS was head of something for a second there but then they showed David Querio.

[@blink182bfsftw]

96% of the plane being recycled is cool

[@MH-pz8wf]

They don't use to care and just let the retired planes rot out there. Because of inflation and scarcity and cost concern, now recycle becomes profitable business which is great news for business and earth, too

[@dwaynejones1555]

Interesting

[@larryhou968]

Mash delta we want a380 back please do it now so do it I am watching

[@serdaralyserow8281]

Отлично👍

[@revee1000]

As someone that is 40 years old and has never been on a plane this is all a huge waste of money.

[@mrwaterschoot5617]

cool documentary. i worked an information technology specialist at pratt & whitney aircraft (propulsion systems) from ww2 until 1960s pwa produced radial propeller driven piston engines under the wasp line designed amand built and assembled by a small group of primary men. men were called to war and ladies similar to rosie the riveter came on board and women got the taste of work in machining and manufacturing and assembly and test and related processes. in 1958 my dad took his family from the netherlands to a new york international airport maybe jfk some day later. the plane a boeing or mcdonald douglas prop plane. more after a nap Attack.

[@lukethompson5558]

Those Virgin America A319’s being scrapped were built 2006-2008. GECAS must be talking a huge loss by scrapping them at a young age when they straight line depreciate their planes over 25 years. I really hope these leasing companies are taking the proper write-downs in a timely fashion, because looking at their financials, it really doesn’t seem like they are

[@rack9458]

MACRS recovery period for passenger airlines is 7 years. No professional accountant would push these out to 25 years as you suggest.

[@noahmendoza4041]

Was just about to comment this

[@johniii8147]

They generally depreciate them over 7 years. As Rack pointed out they use the MARS method.

[@rkevic]

I still feel safe flying on a 32 year old 757 aircraft

[@johniii8147]

@@rkevic It's not really about feeling safe if well maintained. They just get to the end of their economically useful life in passenger service. Maintenance costs skyrocket, as does part availability decrease, and of course fuel consumption and the cost of redoing interiors to modern standards.

[@fuffoon]

Smaller body jet fuselages would make good bunkers if buried. No need to go too deep. Its just a party cave or game room or love shack, grow room, hideout, etc.

[@hiddentruth95]

What!! That’s my dad! Didn’t even tell me he was doing this 😤

[@marklarson601]

A380s are meeting this fate sooner than expected sadly.

[@xsu-is7vq]

I think pronouncing impending death of A380 is premature. Airlines are bringing it back into service.

[@rahuliyer7456]

These parts were already qualified as airworthy. If the quality is good, why not reuse them?

[@johniii8147]

Because they become economically unviable. It's not a question if they could be used, it's a business decision to go with newer aircraft in most cases.

[@16andbraindead]

It always comes down to compatibility, some parts may not be used anymore, or they're outdated.

[@davidshepherd265]

They're still used parts. If there is some issue with the part that slipped through maintenance before the donor aircraft was scrapped, its better to find out in a testing centre on the ground than halfway across the Pacific.

[@richardconter]

Damage Tolerance and Fatigue Life put a limit to the LOV

[@scottfranco1962]

25 years average lifetime. And yet my 172 is 46 years old now.

[@user-tb7rn1il3q]

The 172 doesn’t experience pressurization cycles and it’s more rugged than any airliner. It will easily last a century or more.

[@16andbraindead]

@@user-tb7rn1il3q it also doesn't fly several hundred kilometers per flight

[@ashantedula5696]

Yeah that commercial plane Flys on average 340 days a year . 12 hours a day. For 25 years. Yeah your Cessna Flys maybe twice a week

[@social3ngin33rin]

didn't know they made keychains lol interesting

[@richardg4764]

$15mm a year depreciation is a low ROI. average price of a Boeing 747 is $418mm/27 yrs.

[@yongchen4158]

Just like car junk yard for parts last 2 / 3 decades 20 / 30 years pretty good run car average 15 /20 years pretty good run

[@Ticonderoga12]

I'd get rich just recycling all wiring from one plane!

[@feram5116]

They should force car manufacturers to recycle their sold cars the same way instead of just crushing older cars with a lot of valuable parts inside

[@xsu-is7vq]

if people keep their cars for 20+ years, and replacement parts are very expensive, you wouldn’t need any law to force it.

[@user-mv2xm4oj1s]

A380s are meeting this fate sooner than expected sadly.. Airplanes are generally amazing machines, so this is sad to see.

[@christerry1773]

I’d like to see how the smoldering process works. I’d like to know the percentage that are crushed. It must be alot, legacy airlines alone make up more then 2,700 aircraft. That means there’d be 50-100 planes retiring every year.

[@aussiej2973]

yellow scarf -as if she even knows the plane model , your just being inclusive

[@mattdaddy_888]

I'm worried about older aircraft exceeding pressurization cycles and metal fatigue causing explosive decompression.

[@MrSupercar55]

Hence why they are scrapped once they get too old.

[@TIGERZY2K]

Best way of repurposing old planes is to convert them into air taxis and flying cars.

[@DigitalAndInnovation]

How does it go from "this to this"? I think the giant claw might have something to do with it. You literally drive it up to the plane and go to town

[@stevenholt1867]

The scrapped aluminium can be used for beverage cans rather than landfills and aircraft boneyards. Maybe old aircraft can be made into new aircraft.

[@mrwaterschoot5617]

only problem is stress and metal fatigue. the joke was that american steel beverage cans were the basis of the "rice burners" japanese auto makers. mr honda and mr toyota. the had no gasoline and use turpentine in small motorcycle engines. the history channel covered this in the series automobiles that made the world.

[@16andbraindead]

@@mrwaterschoot5617 If you treat the alloys enough it may do the trick, the wings have to deal with incredible pressure and speed so I doubt it will fail.

[@devonwilliams2423]

To think, you could be drinking a soda from a can built from a plane that took 200 souls. *sips, Ahhhhhhhh*

[@xsu-is7vq]

@@devonwilliams2423 doubt it. The aluminum alloy used for aircrafts might be too hard to make into cans. But reverse should be possible.

[@supa3ek]

You guys dont understand recycling. Most the time the energy put in to recycle is more than the actual making of a new item. This is obviously not good for the environment but good for the politician who claims he's recycling !

[@taiwanchina88]

Nice

[@suprashank]

Are they able to recycle carbon fiber fuselage ?

[@get2dachoppa249]

It can be recycled into non-structural parts, like interior floors and paneling, but not for an actual load bearing structure like wing spars.

[@JayJayAviation]

Yes. Some 787s have been scrapped as an test for exactly this.

[@jasamingarcia6685]

I feel like I want to buy a retired plane and make it into a set

[@CallMeByMyMatingName]

A set of what?

[@auro1986]

how? there are many airframes in places you call bone yard

[@TheDustysix]

Alloys.

[@WGchamara]

❤❤❤

[@Ergiler]

2:31 - Not sure if pretending or if there is something tiny

[@kw8757]

He's threading a wire or cable. You see it just after.

[@Ergiler]

@@kw8757 True, didnt realize

[@ironclay3939]

Why not use the seats in Airports instead of those bloody horrible things. Full length Wings as Highway separators for opposing lanes. PickaPart section of the parking lot at the airports, for those Guys who got there early to meet their girlfriend and have a few hours. Homes for the Homeless, fine a place near their end of town and line up aircraft bodied for people to cast off their Cardboard Boxes and stay warm and dry as a Labour Pool for the local council. Secure them in the water as a breakwater or artificial reef for Scuba Divers - you might want to take any the bodies out cause that's just going to bring sharks 😂

[@user-vk5mr9uw8t]

Aluminum scrap metals

[@FurthermoreJack]

Dude that purchased Elvis's private jet could had gotten a whole 727

[@larryhou968]

Delta

[@AlexRodriguez-ip1xz]

why the hell would anyone want an airplane seat??? they are the most uncomfortable seats in the world lol

[@MrSupercar55]

Unless you got a first class seat. It would be able to recline horizontally. Even for the planes still in service, those first class seats recline horizontally because there’s space to do it without becoming a complete Karen.

[@ironclay3939]

Carbon Fiber scrap use: cut all the carbon fiber into strips 25mm wide and weave them into 1200 x 2400 sheets and re-resin them. Sell as Building material for DIY stores or Reform the woven sheets to fit the internal lining of Submarines Entire bodies as Tourist cabins on low lying islands cause if they float away you have more Right? Fill the bodies with something that floats [what floats that you want to get rid of that can be Bailed to fit tight inside the hull] and make floating islands with Black Carbon Fiber sand to Tourist cabins - the holiday you go for and Never Leave the Plane. Narco-Subs ... Guys this is where the Future of disposing of entire Aircraft Could be if you play your cards right, Narco-Subs don't have to go very far under the water in fact if you made hundreds of Narco-Subs out of 747's and sold them in Mexico to the cartels ... Obvious sell point Everything they've ever wanted, a 747 Mule the Coast Guard will drive right past 😂 I think this is My Finest Idea - well the most money to be made idea if I was trying to find a use for a used Commercial Aircraft.

[@edgewood99]

Why do you need to reach 100% recycle?...WE DON'T. We have MORE than enough space to just landfill. Stop making unrealistic expectations.

[@matthewhahn1132]

Planes scraped

[@zoson-os9rd]

Хоноц хоноцдоо дургүй, хонуулсан нь хоёуланд нь дургүй. Translate this from Mongolian and think about everybody in the world.

[@jadenpark7943]

everything recycles and returns to its original form (energy and materials)

[@Slaaan]

Entropy would like to have a word with you

[@johnpallifestyle]

👍👍👍

[@santhoshnanjundarao2887]

When airplanes are retired, many of them end up stripped for parts that are worth millions of dollars. They showed detail working, quite impressed by news channel work.

[@henrysantos121]

*matatan* *("!".🤔."!")* *Ribirin H-S*

[@jmhowlett]

The military shouldn't recycle them, they should be kept in running order, in the case of a national or global emergency, they need to be available to move people to safer locations, say if an asteroid was to big to be deflected with a gyroscope to the moon, all the people would need to get moved to another side of the planet fast.

[@16andbraindead]

These planes are/were owned privately (they're being crushed), which states a LOT about their airworthyness, but also, the Alloys will go back into new aircraft. The problem with keeping airframes for long periods is that you have to take care of them. This is very difficult, and you also need to find pilots for them. And also, how long are we meant to keep them untill all of the pilots go into retirement and then we have to train people on outdated hardware? I dunno, this seems like a stupid idea, and it's not like we're losing planes, these were already lost, not for finnancial or polititical reasons, but for other reasons like those i have mentioned. Example: The MD 80/82. This plane is nearing 40 years, or more. This plane is far too inefficient and outdated, and we're better off getting a sophisticated B737 from it's ashes or else... the plane may not even get you off the runway, let alone on the other side of the earth. Now, about that gyroscope thing, you do not need all of that, because it doesn't exist. We can just slam a nuclear warhead into an incoming asteroid, or a country, or... You get my idea. Also, most people will escape by car, be it into Canada or Mexico, so the cost of a plane ticket won't be justifiable. Another issue is getting ready in time, the plane needs to be fueled, pilot ready, cargo handiling, other ground crew stuff... That's 4 hours you couldve spent on a drive to Canada or Mexico. TLDR: Not a problem, no need for a fix.

[@jmhowlett]

@@16andbraindead personally, I love the old avionics, they were built stronger and safer, and I would never fly in one of those new jets without any manual controls, too scary.

[@jmhowlett]

Also, I think it makes more sense to have all these planes in operation at a time when all the modern avionic systems could be down. It would be a terrible thing if tech support wasn't available and the plane was inoperable.

[@16andbraindead]

@@jmhowlett there's still redundancy built into them. Look, the old avionics that they had still offer the same capabilities, but they are much easier to work with. Instead of having all the work done thru manual buttons it does it all itself.

[@16andbraindead]

Glass cockpits reduce clutter, they are much easier to be used during night time and are simpler to maintain.

[@iliketheodds2575]

What happens to Western planes that are being illegally held in Russia?

[@jdaz5462]

lol They stay in Russia and Russia manufactures parts to keep them flying.

[@Jesse.00]

@@jdaz5462 Russia doesn't really have the means to manufacturer parts to the standards that these planes were manufactured. They're definitely relying on reclamation, such as the process in this video. Either quality and safety standards are going to be reduced, or the number of planes flying there will be.

[@jdaz5462]

@@Jesse.00 lol Russia manufactures their own planes, including engines. They absolutely do have the capabilities to make parts.

[@16andbraindead]

they fly under Russian names, nothing you can do lol. plus, i think a large majority are bought BY Russian airlines

[@tweezerjam]

How or why? Who edits these titles 😂

[@luisstransport]

I'm early

[@motnik]

Why did you adapt the awful habit of having your speakers talk with this annoying “vocal fry”? It sounds disinterested, condescending, and disingenuous. If you don’t feel the need to put any effort in to speak, I’m not going to put in the effort to listen. Thumbs down.

[@Test67457]

2 nd

[@mrd.808]

Instead of crushing them, why not donate them to the states to house the homeless people

[@blink182bfsftw]

Planes make terrible homes

[@user-tb7rn1il3q]

The metal is too valuable. Cars particularly vans would make better homes.

[@16andbraindead]

it would be more efficient to use them as targets for use in air to air combat

[@mausi28]

How do you want build houses from that?

[@Tonyhouse1168]

There’s no money in it.

[@daniyaldanish8996]

🫨👌🏻✌🏻🫣👍🏻

[@vicentvanmole]

well with political policy being they are many of Boeing plane may need to put into recycle bin .Leaders & parties making USA great . While other competition taken 600+ new orders .

[@libertybeltaloda1769]

4rd

[@nbl1807]

3rd

[@TropicalThunder21]

Nah cause new airplanes really be committing suicide

[@FBISHOJI]

Boeing Max you know what happened

[@16andbraindead]

@@FBISHOJI "Do a frontflip!"

[@user-fu2xy8dw6t]

វានិយាយរញ៉ៃការស់នៅរបសើខ្ញុំ វាថា មិនអោយខ្ញុំរស់នៅសុខទេ វាយាមខ្ញុំ អស់មួយជីវិត វាបំផ្លិចបំផ្លាញ សេរឋិភាប្រជាជនខ្ញុំ និង ខ្ញុំមុន ពួកអានេះ ថោកទាប អញ្ចឹង តើ បាន Russia មិនដកទ័ព មើលទង្វើពួកអាឆ្កែថោកទាប ពួកនេះ ចុះ បន្តិចទៀត ខ្ញុំនិងសរសេរ រាយការណ៍ទៅ Russia អោយប្រយ័ត្នកងទ័ព ពួកវា មើលឃើញ យកបច្ចេកវិទ្យា ឈ្លានពាន ប្រទេស ប្រទេសពួកខ្ញុំ វាថោក ទាបមិនព្រមបញ្ឈប់ ទង្វើរបសើពួកវា ប្រាវ់មេពួកវាទៅ កុំជាន់ដី UN អោយសោះ មកពីរពួកហែងប្រើអំពើរំលោភសិទ្ធិមនុស្ស មកលើប្រជាជនអញ ពួកហែងប្រៀប ស្មើមិនបានជាមួយ Russia ទេ Russia ឈ្លានពាន ក៏នៅ គោរព UN ដែរ តែពួកហែង ប្រើអំពើរថោកទាប រំលោភសិទ្ធិមនុស្ស ដោយប្រើ សម្លេង រំលោភសិទ្ធិ មនុស្ស American ថោកទាបដោយសារ ពួកអាមន្ត្រីអស់នេះ ចាំខ្ញុំ comment ទៅ marine អំពីរអំពើថោកទាបរបស់ពួកអាថោកទានអស់នេះ ហែងចង់បញ្ជាកងទ័ព ហែងកុំសង្ឃឹម ពួកអាថោក ទាប ទ្បើងរំលោភសិទ្ធិមនុស្សនេះដោយសម្លេងនេះមិនមែនទេ អំពើ Russia ទេគឺពួកអាក្បត់ជាតិ អស់នេះ មិនដឹងមានប្រទេសណាខ្លះ ចូលរួមជាមួយវា ប្រធានាធិបតីមិនបាច់ប្រាប់ទេ ប្រាប់ ទាហាន បានស័ក្ដិសិទ្ធិ ដាក់marine ការពារសម្ព័ន្ធមិត្ត តាមព្រំដែនអោយហើយ ក្រៅពីរនេះ កុំស្ដាប់អ្នកណាក្រៅពីរមេទ័ព កុំអោយវាប៉ះពាល់ ជីវិតកងទ័ព marine ល្បីល្បាញ ធ្វើសង្គ្រាម ការពារសន្តិភាព មិនមែន ការពារ និងបំរើផលប្រយោជន៍ អោយពួកជន រំលោភសិទ្ធិមនុស្សនោះទេ Russia ក៏ធ្លាប់មានគុណសម្បត្តិ ការពារសន្តិភាពពិភពលោកដែរ សរសេរអោយស្មើគ្នា សង្គ្រាម Ukraine សង្គ្រាម ស៊ីវិលសោះ ឈ្លានពាន អី បើគិតតាមច្បាប់ក៏គិតទៅ

[@JayJayAviation]

Wrong video

[@ZAGIDI]

It’s 2076, Remember I was also here . 🫡🥷🏿