I like the idea because I've definitely had buyer's remorse in the past. However, I feel there should still be a fee of 10% of the remaining lease amount if cancelled early.
For argument sake, lets use this as an example:
Lease rate: $27,778/ week (Total 15 Year Amount= 20,000,000)
Lease time: 15 years
Minimum Lease Time: 1.5 years
After 20 months, this airline wants to cancel the lease. At 10%, the airline would owe 1,733,391. This would cancel out any savings associated with the decrease annual lease rate.
---In order to to counteract the maintenance issue of dropping the aircraft just prior to heavy maintenance, I think there should be an added maintenance/ usage fee.
Weekly A Check Cost: 1,000 (48,000/ year)
Monthly B Check Cost: 5,000 (60,000/ year)
Annual C Check Cost: 100,000 (December 2012)
8 Year D Check Cost: 800,000 (December 2012)
Anytime a lease is cancelled, the airline must pay a 2 year fee of 50% of the remaining maintenance to be performed. Thus if an airline canceled the lease on January 2011, the total remaining maintenance expense is 1,216,000. The cancellation maintenance fee would be 608,000. However, if they cancelled it January 2009, they would only owe 208,000.
---This, coupled with the lease cancelation fee, would provide a sizable penalty while providing airlines flexibility. Obviously foresight is necessary and this system could make an airline bankrupt if the play takes out a "foolish" lease. However, I personally feel that that is the name of the game.For the "stupid" B742 purchase, I could see having one lease abolishment clause per airline for the entire game to be allowed with the following criteria:
1) completed within one year of lease initiation date
2) Only for computer leased aircraft.
All in all, good idea about tweaking the cancelation clauses. And excellent find regarding the leasing contract.