FAR § 399.42 Flight equipment depreciation and residual values

§ 399.42

Flight equipment depreciation and residual values.

For rate-making purposes, for air carriers receiving subsidy under section 406 of the Act, it is the policy of the Board that flight equipment depreciation will be based on the conventional straight-line method of accrual, employing the service lives and residual values set forth below:

	Service life in years	Residual value as percent of cost
Turbofan equipment:
4-engine	14	2
3-engine	14	2
2-engine	14	2
Turbojet equipment:
4-engine	10	5
2-engine	10	5
Turboprop equipment:
4-engine	12	5
2-engine	10	15
Wide-body equipment:
4-engine	16	10
3-engine	16	10

[PS-54, 38 FR 24643, Sept. 10, 1973, as amended by PS-99, 45 FR 82625, Dec. 16, 1980]