THE FIXED ASSET LIFE CYCLE CHALLENGE

摘要

Prior to the COVID-19 pandemic, Dublin Airport had more than 2,000 departures each week to about 200 global destinations. In 2019, 32.9 million passengers passed through its gates and 50 different airlines operated there. Serving most of Ireland, the airport is owned and operated by daa Group (the Group), which also operates the Cork Airport in Ireland and travel retail stores throughout Europe. Unlike airports in the United States, where different organizations typically provide the various services within the airport, the Group handles most operational activities within Dublin Airport, from security to disaster recovery to restaurants. This difference makes the organization an ideal candidate to study the concept of life cycle costing (LCC). LCC considers all costs related to keeping a fixed asset in production throughout the asset's entire life cycle in order to optimize both the initial investment and the continuing costs of repairs and maintenance.