Today’s aircraft are very complex in design and need constant monitoring of the systems to establish the overall health status. Integrated Vehicle Health Management (IVHM) is a major component in a new future asset management paradigm where a conscious effort is made to shift asset maintenance from a scheduled based approach to a more proactive and predictive approach. Its goal is to maximize asset operational availability while minimising downtime and the logistics footprint through monitoring deterioration of component conditions. IVHM involves data processing which comprehensively consists of capturing data related to assets, monitoring parameters, assessing current or future health conditions through prognostics and diagnostics engine and providing recommended maintenance actions. The data driven prognostics methods usually use a large amount of data to learn the degradation pattern (nominal model) and predict the future health. Usually the data which is run-to-failure used are accelerated data produced in lab environments, which is hardly the case in real life. Therefore, the nominal model is far from the present condition of the vehicle, hence the predictions will not be very accurate. The prediction model will try to follow the nominal models which mean more errors in the prediction, this is a major drawback of the data driven techniques. This research primarily presents the two novel techniques of adaptive data driven prognostics to capture the vehicle operational scalability degradation. Secondary the degradation information has been used as a Health index and in the Vehicle Level Reasoning System (VLRS). Novel VLRS are also presented in this research study. The research described here proposes a condition adaptive prognostics reasoning along with VLRS.