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Table 4 <br /> <br />Aireraft Prices and Wage Rates <br />Average Yearly Growth Rates <br /> <br />Aircraft ~y~e <br /> <br />~in~le-En~ine Piston Aircraft <br />Prices ~ <br />Wage Rates <br /> <br />Multi-Engine Piston Aircraft <br />Prices <br />Wage Rates <br /> <br />Yearly Growth Rates <br /> (Percent) <br /> <br />1972-1977 1977-1984 <br /> <br />7.6 11.4 <br />9.1 8.4 <br /> <br />1972-1979 1979-1984 <br /> <br />8.2 12.2 <br />8.6 7.2 <br /> <br />Turboprop Aircraft 1972-1980 1980-1983 <br />Prices 5.2 8.9 <br />Wage Rates 9.2 8.1 <br /> <br />Turbojet Aircraft 1972-1979 1979-1984 <br />Prices 7.6 9 · 8 <br />Wage Rates 8.9 8.3 <br /> <br />This implies that other factors such as rapidly rising product liability <br />costs and declining productivity are responsible for price increases (1). <br /> <br />The aircraft manufacturers are paying very high liability insurance costs <br />not only for all the new aircraft that come out of the assembly line but <br />also for all the aircraft that were produced in the past 20 years. This <br />has been cited as the single most .important reason for the recent <br />escalation of aircraft prices (13). <br /> <br />Corporate operators are leasing rather than purchasing turbine-powered <br />general aviation aircraft in many instances as the current economy curtails <br />capital equipment acquisitions (14). During difficult economic times, the <br />chief operating officers of some companies are required to submit for board <br />review any capital equipment purchases above a certain figure. Normally, a <br />lease arrangement amounts to less than the mandatory review threshold on an <br />annual basis. This factor has made leasing popular. <br /> <br />Recent trends indicate that the prices of navigation equipment such as VHF <br />receivers are increasing at a faster rate than the aircraft prices. The <br />impact of this price increase is very significant because there has been a <br />trend in recent years toward more sophisticated avionics in all types of <br />aircrafts in the region. Table 5 compares the percentage of single engine <br />aircraft equipped with various avionics from 1972 to 1984 (2,3,4,5)° <br />Nearly all multi-engine aircrafts, turbo props and jets are equipped with <br />some kind of sophisticated avionics equipment. <br /> <br /> <br />