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Author Topic: Buying leased aircraft  (Read 1100 times)

Offline ModeSix

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Buying leased aircraft
« on: April 13, 2011, 09:40:28 PM »
Is it worth buying out the aircraft you lease to own them?

I've been doing it and own 4 out of the 10 leased craft I have.

Other than the obvious benefit of not having to pay the leasing on it anymore, and being able to use it as collateral against loans, what are the benefits?

Also what are the negatives?
« Last Edit: April 13, 2011, 09:44:31 PM by ModeSix »

Offline CUR$E - God of AirwaySim

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Re: Buying leased aircraft
« Reply #1 on: April 13, 2011, 09:51:42 PM »
This isn't an easy to answer question, because it depends on many factors.

On the one hand, you are right, you don't have to pay leasing and you can use it for loan.

On the other hand you have this aircraft. And maybe there will be one point you don't want it anymore - so you try to lease it out or sell. And here's the problem: Sometimes nobody wants your aircraft.

In your case it's DC-6(B) and DC-7, I think this is ok in this scenario.


Also some notes in this;
Modern aircraft are very expensive. In early games (Early Days, partially Jet Age) it is possible to direct purchase lots of aircraft in the first 18 month ingame a game world has started. This is not (this easy) possible in later game scenarios.

So, nearly all games at the moment last 20 ingame years. Buying or leasing will be much more interesting when games start in the Early Days and run for 60, 70 years or longer.

Long text, short result;
If you purchase the right aircraft at the right times it's good. But it also could be very bad for you.
If you lease aircraft, you can get rid of them fast if you don't need them anymore, even it's a very unpopular model (due to increased fuel price for example). On the other hand you pay much more money if you operate it more than 80 month (new aircraft).

Branmuffin

  • Former member
Re: Buying leased aircraft
« Reply #2 on: April 13, 2011, 10:02:45 PM »
You can also place wholly-owned aircraft on a minimum, Liability-only insurance policy, which is much cheaper than the required 90% hull loss insurance that covers leased aircraft.

Offline LemonButt

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Re: Buying leased aircraft
« Reply #3 on: April 13, 2011, 10:09:37 PM »
Buying an aircraft and leasing it out will provide a much better return than the 0.10% interest from sami if you just let the money sit in the bank...

Offline CUR$E - God of AirwaySim

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Re: Buying leased aircraft
« Reply #4 on: April 13, 2011, 10:12:46 PM »
Buying an aircraft and leasing it out will provide a much better return than the 0.10% interest from sami if you just let the money sit in the bank...

If the one who leases the aircraft do all the checks - especially the D-Check - and you can lease out the aircraft all the time, that's right. 

I'll stay on earlier statements I made on this in the past... fly all your aircraft in your own airline, this makes most money.  :)

Offline LemonButt

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Re: Buying leased aircraft
« Reply #5 on: April 13, 2011, 10:27:35 PM »
If the one who leases the aircraft do all the checks - especially the D-Check - and you can lease out the aircraft all the time, that's right. 

I'll stay on earlier statements I made on this in the past... fly all your aircraft in your own airline, this makes most money.  :)

Not necessarily.  I was cash rich and bought 2 aircraft on the used market that would have added 2 fleet types.  The increase in fleet commonality costs (on the new fleets and increases on existing fleets) didn't make it economically to fly them, so I leased them out (DC4 and Breguet).  Considering the demand for aircraft, I put in the maximum price AWS allowed and they were leased within seconds (for 3 years no less).  It's an extra $1mm/year in pure profit and I can still leverage it as an asset in taking out a loan, so I remain liquid.

 

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