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Author Topic: Ahh, leases!  (Read 932 times)


  • Former member
Ahh, leases!
« on: September 18, 2010, 08:56:40 PM »
I just did the math on the leasing costs of my new Airbuses against their weekly profit, and it looks like a fair number of them are actually LOSING money. I don't get it, many of them are operating around 3 or so round trips per day, or a couple of longer haul flights with pretty high load factors. United and US Airways seem to do ok flying 319s and 320s coast to coast in the real world, so what gives? I guess even with rising fuel costs keeping the old gas guzzler MD80s with the cheaper leases would have been a wiser choice in the long run.

Offline Sigma

  • Members
  • Posts: 1920
Re: Ahh, leases!
« Reply #1 on: September 18, 2010, 09:56:59 PM »
For one thing, if the real world airlines really were doing so well operating that way they probably wouldn't have been losing money for the past decade and consolidating themselves left-and-right.  So I wouldn't really be using them as a barometer of success

But which figures are you looking at for profits?  If you're looking at the "My Aircraft" screen which breaks down gross profit by aircraft, then the leasing costs are already included in that figure.  Many other things aren't, but the leasing costs are.  Any A320 flying 2-3 times daily at an 80% load-factor should be making plenty of cash.


  • Former member
Re: Ahh, leases!
« Reply #2 on: September 18, 2010, 10:51:15 PM »
Hah, I always though leasing costs weren't included and it was staring me in the face the whole time. Staffing may be the problem. I've noticed I've had to hire about 10 new cabin crew for each Airbus vs each MD. Plus the fact that they keep requesting payraises it's eating up my profits.

Offline schro

  • Members
  • Posts: 3006
Re: Ahh, leases!
« Reply #3 on: September 20, 2010, 12:39:03 PM »
Due to the demand based market pricing for leases and aircraft purchases, I find it makes all 737 and A320 series planes rather unattractive from a cost perspective for the number of seats you get to fly with them.

MD90's offer about the same efficiency and payload for significantly less (I usually see a 20M difference in value between them and the A/B planes).


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