Aircraft Purchases by Airline

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    IMPLAN Support
    HI Rex! Thank you for your post! You would use the Analysis By Parts method if you had additional information about the airline's spending pattern and wanted to customize it. Such as removing certain commodities that you know your specific airlines does not purchase or adjusting the coefficient of certain commodities. If you do not plan on adjusting your spending pattern then our recommendation is to run an Industry Change Activity. You are correct, the small amount of purchases found in the spending pattern are associated to Maintenance & Repair or aircraft (purchase of replacement and repair parts), but not purchases of the aircraft themselves, because these are not part of annual operations/purchased in a consistent value/fashion (which is what a spending pattern describes). Capital Expenditures of this nature are modeled separately. You would use aircraft manufacturing, but you would want to be sensitive to the following: >Depending on your Study Area (unless you are using the U.S. total file) much of your domestic aircraft production may not be local to the region. One way to deal with determining how much could possibly be purchased from your region is by using the Local Purchase Percentage to estimate the local availability of aircraft manufacturing to meet demand. >If aircrafts are purchased directly by airlines from manufacturing firms, which we suspect they might be, there are not any additional considerations; however, if they could or are purchased through a wholesale environment you would want to consider applying Margins to the value of airplane purchases. In this case you will also want to set Local Purchase Percentage to SAM Model Value. An Industry Change is used when you know what Industry is experiencing the change in production and are interested in targeting that specific industry. A Commodity Change is used when you know that there was a change in commodity demand or production but didn't know what Industry or Institution (governments) would meet the demand e.g. I know there will be an increased need for nursing home care in my region because of an aging population, but I don't know what the mix of private hospitals, nursing homes, and government hospitals will provide this need.

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