Evening star., 1932-08-21
Aulme Operation Highly Costly

various types of insurance and bonds which
must be carried, the pensions and general well
fare work. These things too, cut into the
revenue and greatly lower the chances for
profitable operation.
Depreciation and obsolescence of planes, en-
gines, instruments and equipment used in the
business of air transportation is unusually high
in comparison with some other transportation
operations primarily for two reasons: First,
the exceptionally high standard of quality ana
efficiency that is, and must be, maintained IN
every detail of the makeup of aircraft and its
equipment necessarily results in the with
drawal from service of planes, engines, pro-
pellers or other parts the instant that the
slightest injury or irnperfection develops.
Equipment that would be considered entirely
safe for in many other industries Is
scrapped without question on account Of the
high element of safety demanded. This natu-
rally tends to shorten the useful life OF such
property. For example, the life of an airplane,
exclusive of the power plant, is only three or
four years. while railroad car or street car
lasts for 20 or more. An airplane engine, With
frequent overhauls repairs and adjustments,
is good for from 1,500 to 1000 hours service,
and the depreciation accounts of the carriers
and the department are set up and kept ac-
cordingy. Comparison Of these figures with
the depreciation accounts Of most any other
strate why air operation shows apparently high
depreciation charges.
Also the factor of obsolescence enters largely
into this item of expense for the reason that
the air industry and its allied industries have
been developing so rapidly that new and safer
types of aircraft and aircraft equipment are
constantly being placed upon the market, ire
quently with the result that an operator is
obliged to replace serviceable planes, engines or
9TH upitt haf nf mo modern
and safer type, and often at a considerable
monetary loss. It should stand a tribute
to the industry as a whole that 1t has always
stood ready and eager to do this. Consequent
ly the air lines of America are now using the
most modern equipment available, and any new
developments adding to the safety or comfort
of passengers, or the efficient transportation
of cargo are Immediately adapted and brought
into regular use. While the manufacturers Of
airplanes and engines have been the leaders in
the development of aircraft the carriers them
selves have had an important part in this
essential work, especially in the testing and
perfecting Of the various instruments that 60
so far toward making flying safe in fog and
under other adverse conditions. It must be
remembered that regardless Of who invents or
markets any new device, it is the operator
himself who must purchase it, install it In his
planes, test it out under actual operating con-
ditions and bear the brunt Of the loss If it
turns out to be useless or impractical The
accounting systems of the carriers and the de-
partment are set up so as to maintain COM
plete control over the account carrying these
important items Of expense, for the books will
not show the true situation unless this in
evitable procession to the scrap pile" is recog-
nized
The second item of operating expense, in
order Of its Importance as an expense item, Is
Repairs and Overhaul" which amounts to
16 per cent of the whole, or say about $4000-
900 each year. This expense is very closely
related to the expense for depreciation, for the
obvious reason that property kept in good re-
pair will not depreciate as rapidly as If neg
lected 1t appears comparatively high for
largely the same reasons that make the charges
for depreciation and obsolescence seem high.
In order to keep all equipment in the highest
state of operating efficiency, frequent tests and
overhauls are necessary and repairs and re-
placements of propellers. instruments, engine
parts and all other working parts are made
after a certain number Of hours in service,
even though there is no visible sign of deteri-
oration Each operator has to provide expert
mechanics and shop facilities, and some Of the
larger companies have completely equipped and
manned shops that are capable of building
complete airplane from start to finish, If nee
essary. The smaller lines usually hire this
work done at shops which are advantageously
located and make a business Of repair and
overhaul for the industry.
Regular major overhauls Of engines are made
after each 400 hours less in the air and the
entire ship is overhauled after about each 1000
hours of operation. These frequent overhauls,
together with the constant inspections and
tests that are a part of the regular operating
routine, explain the expense involved for this
purpose and also account for the exceptional
degree Of safety that Is now being maintained
in scheduled air transport service and the al
most complete absence of accidents due to
mechanical imperfections.