Can Carriers Find Gold in Used Aircraft Market?

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Jan. 13 (Bloomberg) -- Bloomberg Industries’ senior analyst for defense and airlines George Ferguson talks with Tom Keene about the market for used aircraft in today’s “This Matters Now” on Bloomberg Television’s “Bloomberg Surveillance.”

Find more of the older airplanes still flying.

They are earning good revenue, boosting profitability for delta.

Who buys used inner planes yak obama in the old days, we would move those airplanes out into the developing world.

In the last downturn we spent a lot of time at xm bank in the u.s. and in europe at the export agencies, trying to push airplanes around the world.

The card-carrying example with black we are -- card- carrying jobs -- you have some niche carriers.

They will buy some of those older airplanes and put them in the revenue service.

Is delta strategy just doing that to save money?

, i think they are.

I think it is part of their fundamental business strategy.

It just costs lest to do -- costs less.

Them it was a essentially an airplane with two engines and a hunk of aluminum with but -- hunk of aluminum between them.

They care about the plane or two engines?

, the engines of the majority of the value of those airplanes.

If we can spend a lot less money buying the airplane, if we spend $10 million and $40 million for a new airplane, we can burn $30 million of fuel during the life of that airplane or maybe less and come out ahead.

Boeing airbus, what is the distinction between them?

It used to be ceramic plastic versus metal.

You go on blindfolded between a boeing and airbus plane.

The distinction is narrowing.

They are building its to compete with triple seven.

I think it is a wide body to engine airplane.

Boeing had a bit of a leg up for a while.

The seven 87 extended their leg up in it is going to match boeing's spec.

Coming up, an exclusive interview.

I'll forward to not go bankrupt.

This text has been automatically generated. It may not be 100% accurate.

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