wabower
Touchdown! Greaser!
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- Sep 1, 2008
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Wayne
The details are immaterial, the point is that the owner is required to fund the repairs when the event occurs, assuming he wants to continue to use his airplane. For most owners, the options are limited to using personal funds or borrowed funds. If the airplane is already mortgaged based on typcial loan-to-value ratios, borrowing may not be an option. If the owner doesn't have the cash, he's toast.
No different than boats. There are marine diesels that cost more than turbines (and we have turbines as well) and you have to cut a hole in the side of the boat to do anything with it. Still,all in all it works into the 10% /annual average if you start with a good unit. You just may be using some on credit from future years that won't be so much. Any "catch up" items and upgrades are exclusive of the 10%.