AirwaySim
Online Airline Management Simulation
Login
Username
Password
 
or login using:
 
My Account
Username:
E-mail:
Edit account
» Achievements
» Logout
Game Credits
Credit balance: 0 Cr
Buy credits
» Credit history
» Credits FAQ

Author Topic: speculative prices at used market  (Read 1003 times)

Offline Andriy

  • Members
  • Posts: 226
speculative prices at used market
« on: May 18, 2010, 02:03:06 PM »
recently there has been a lot of planes on used market with prices at 30%+ above their value. It gets to the point when the lease price for 5 y. old plane is same or higher vs a new lease. And those are the planes offered by leasing companies, not leased by airlines. How does it work? Is there smth in the model that determines how the prices used planes is set? If that's some kind of dynamic demand/supply model, than how one could calculate a demand for used planes? Is there any way to predict lease prices?

Offline Unbornio

  • Members
  • Posts: 662
Re: speculative prices at used market
« Reply #1 on: May 18, 2010, 03:09:52 PM »
The computer-generated sent to the lease market is based on demand. If there is demand for the plane you are choosing to lease, the system decides to put it at the max or near max price.

Strangely, you can even make the prices go up by leasing the same aircraft type over and over again by yourself  :o.

(I did that once with 757s, one day it was leasing/selling for less than its value, 2 days later, it's +30.)
Beta Tester

Offline Sami

  • Administrator
  • Members
  • Posts: 14539
    • AirwaySim - Are you the next Richard Branson?
Re: speculative prices at used market
« Reply #2 on: May 18, 2010, 03:13:39 PM »
All planes entering the used market go there always with a very high price. A fresh C/D increases it even more.

If the plane is not sold the price is reduced step by step until the plane is taken off the market if it was still not sold.

Offline ANstar

  • Members
  • Posts: 267
Re: speculative prices at used market
« Reply #3 on: May 18, 2010, 06:50:32 PM »
Air Singapore are also flogging $20M ATR-72's!!!

Offline Andriy

  • Members
  • Posts: 226
Re: speculative prices at used market
« Reply #4 on: May 18, 2010, 07:51:17 PM »
+50% to fair value... I wonder who is taking them and how their P&L is going to look like...:) Good deal for Singapore though ;D

Offline Unbornio

  • Members
  • Posts: 662
Re: speculative prices at used market
« Reply #5 on: May 19, 2010, 07:03:07 AM »
Well. If they overcharge me in the beginning, I pay them back in the end.  ;D

Run the planes till C-checks expire and make the planes as lowest condition as possible. After that, click return  :laugh:.
Beta Tester

Offline alexgv1

  • Members
  • Posts: 2184
Re: speculative prices at used market
« Reply #6 on: May 19, 2010, 03:30:26 PM »
Well. If they overcharge me in the beginning, I pay them back in the end.  ;D

Run the planes till C-checks expire and make the planes as lowest condition as possible. After that, click return  :laugh:.

Yeah thats what I'm doing... I'm leasing a plane from a player at high prices because I needed to quickly fill a route... and I intend to dump it back on them near the end of the lease without doing a C-check as the plane that is meant to replace it will arrive. I only had it on 1 year lease anyway so I'm sure they aren't getting their value for money.
CEO of South Where Airlines (SWA|WH)

Offline Minto Typhoon

  • Members
  • Posts: 1017
Re: speculative prices at used market
« Reply #7 on: May 21, 2010, 01:02:48 PM »
$42m Bae 146's make those AT72's look good value.  With no slots left in HKG from the airline owner and a large aircraft backorder  I can see those prices reducing quickly.

Offline Yuha

  • Members
  • Posts: 211
Re: speculative prices at used market
« Reply #8 on: May 22, 2010, 11:52:21 AM »
My asking prices might be high but are always negotiable - unlike the prices of computer-generated companies. Good customers that want more than just one plane are valued and lower prices are offered if asked for.  :)

pfmboidi

  • Former member
Re: speculative prices at used market
« Reply #9 on: May 22, 2010, 01:52:39 PM »
Well. If they overcharge me in the beginning, I pay them back in the end.  ;D

Run the planes till C-checks expire and make the planes as lowest condition as possible. After that, click return  :laugh:.

Yes...but how do you avoid Improper Maintenance fines and drops in CI (which are very costly)?

 

WARNING! This website is not compatible with the old version of Internet Explorer you are using.

If you are using the latest version please turn OFF the compatibility mode.