Capital Costs
Capital costs refer to the expenses incurred by an airline or an aviation company in acquiring and maintaining its fleet of aircraft, as well as the infrastructure and facilities required to operate and maintain them. These costs include the purchase or lease of aircraft, engines, spare parts, ground support equipment, hangars, maintenance facilities, and other related assets. Capital costs are a significant component of an airline's operating expenses and can have a major impact on its profitability and competitiveness in the aviation industry.
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