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Author Topic: Would like some advice regarding leasing/owning aircraft  (Read 2125 times)

Offline alexgv1

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  • Posts: 2184
Would like some advice regarding leasing/owning aircraft
« on: March 13, 2010, 11:12:33 AM »
Hey all,

I was hoping that some of the experienced players could help me settle a decision in my head.

My airline is Travel UK flying from Leeds Bradford (EGNM).

I have a fleet of 4 Boeing 737NG aircraft which are leased and I am wondering if it is worth buying one.

The advantages to me seem to be:
  • Adds to company value giving protection from bankruptcy
  • Gives equity to secure more loans and get more aircraft
  • Ownership takes away the cost of leasing it

In previous games I expanded too fast with the availability of cheap leased aircraft.

I have avoided that this time and have a stable income.

If I can pickup a used planed around the 10y old mark for $40m, I am over halfway there in terms of funds.

The real dilemma for me is that to raise the rest of the funds will take just over a real life week (and 1 credit) where I wont be too involved in the airline.

What would be the better thing to do? Hold on seeing as I'm halfway there or lease more planes, expand my income and I can afford an aircraft sooner in real time.

Thanks,

Alex

p.s. Could someone add if owning aircraft is all it's cracked up to be I would like to hear from people who use all leased fleets and are successful.

Edit: fixed link  :-\
« Last Edit: March 13, 2010, 11:18:37 AM by alexgv1 »
CEO of South Where Airlines (SWA|WH)

Offline schro

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  • Posts: 3068
Re: Would like some advice regarding leasing/owning aircraft
« Reply #1 on: March 13, 2010, 01:16:46 PM »
Starting to buy aircraft at your current fleet size will significantly slow your growth - in MT1, planes are pretty expensive in relation to what you can make with them, so I'd personally wait until you've got about 30 leased before considering the ownership path (the benchmark being that you can buy maybe one plane per real day (i.e. about one per game month).

Your costs are lower and it helps you compete profitably when fuel spikes as you've already made the capital investment, but I wouldn't go as far as saying it protects you from bankruptcy other than giving you an option to take out a secured loan to finance operations.

The only time I buy early in an airline is if i spend a few days away from the game and pile up a bunch of cash.  The game's economics allow you to be profitable with a fully leased fleet if you manage it well.

 

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