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§ 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]