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Author Topic: C Check Season is Looming  (Read 1015 times)

Offline swiftus27

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C Check Season is Looming
« on: July 27, 2012, 11:23:11 AM »
I hope those of you operating at or close to the red are ready to face your demons when C Check season rears its ugly head.

Those of you who own old DC10s, 727s, and more need to get ready for what is going to be coming.   These expenses hit just as your lease payments start to kick in.

I smell a demotivator coming. 

gelatto

  • Former member
Re: C Check Season is Looming
« Reply #1 on: July 27, 2012, 07:14:30 PM »
What if all your leases end just 0.1 months before the C check  :laugh:

Offline swiftus27

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Re: C Check Season is Looming
« Reply #2 on: July 27, 2012, 07:40:24 PM »
You can't keep turning your planes over every year.  That will kill you because of increased costs to lease.  Plus the time it would take you would be insane.

Online JumboShrimp

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Re: C Check Season is Looming
« Reply #3 on: July 27, 2012, 07:45:10 PM »
You can't keep turning your planes over every year.  That will kill you because of increased costs to lease.  Plus the time it would take you would be insane.

And of course, you would need to have planes on the Used Market as replacements...

eleventy40

  • Former member
Re: C Check Season is Looming
« Reply #4 on: July 27, 2012, 09:47:55 PM »
I don't think it will be hurting me as bad as it possibly could. I have found it nearly impossible to keep a decent 737-100/200 fleet with such little market supply so I made a risky move and have chosen to switch to the more readily available 727s, with the added exception of an incoming 737-300, which I plan to switch in the future. My stipulation of switching to the 727s was to keep a good rotation between them, regarding the C checks, none are within 2 months of another, so far, as I am still in the process of phasing out the 737s and will be purchasing more 727s. I left a slight safety net with the leases ending all before the C checks are due in case I was in short supply of cash. Any ideas on how this might work out? I'm obviously not quite so experienced as everybody here but I have put a lot of planning into it in a financial viewpoint.

Offline swiftus27

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Re: C Check Season is Looming
« Reply #5 on: July 27, 2012, 09:54:39 PM »
727s will kill you if you use them past 1-2 years in this.  Their maint costs are just insane.  Keep your types to a minimum and trade up asap.

eleventy40

  • Former member
Re: C Check Season is Looming
« Reply #6 on: July 27, 2012, 10:01:13 PM »
I am definitely planning on trading up, but do you think that their should be a decent used market by then( more variety), from what I have heard, after the first year, many airlines go out and leave more planes. I just can't decide if I want to buy all of my 737-300s new, or hope and pray that they begin to show up on the markets in more supply. Its more the supply of things right now that is driving me into such a precarious position with these 727s, although they are profiting MUCH higher than I could have ever hoped for, almost $400,000 a week each, among four of them.

Offline Sanabas

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Re: C Check Season is Looming
« Reply #7 on: July 27, 2012, 10:29:10 PM »
Actually, years 1-3 are probably the worst time to find used planes. The initial supply that was in storage is running out, and while there are many airlines BKing and putting planes back, the successful airlines actually have spare cash, and so can snap up any planes they find.

Planes become much easier to find on the UM after ~5 years, as you still have the BKs, but the bigger ones have stopped being so aggressive in the UM, as they now have a good supply of new planes.

Offline ezzeqiel

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Re: C Check Season is Looming
« Reply #8 on: July 28, 2012, 04:55:44 AM »
I just went badly into red acquiring all the slots I needed on the recent increase...

Fortunately my first Ccheck comes in October 28th... Then only 1 more in november and 1 in december...


Also... small question.. I know C checks are not payed if you are in red, but what happens with A and B checks... are they payed anyway ??

Offline lunchbox

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Re: C Check Season is Looming
« Reply #9 on: July 28, 2012, 06:08:46 PM »
It depends on how far in the hole you are.  If you are -5mil and down, your c-checks and loan payments cease, but if you are -8 to -10mil, all maintenance and marketing ceases.

Hope that helps 8)

Offline Troxartas86

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Re: C Check Season is Looming
« Reply #10 on: July 29, 2012, 05:15:29 AM »
You know, I've never had any trouble with C-Checks with the one exception of the time I built an airline entirely out of 20 year old BAC 111s. That went downhill quickly... In DoTM I recently got through six D-checks on Tupolev Tu-134Bs while running on very thin cash flow so I think the whole maintenance thing is overrated. If your airline is decently profitable, you should be able to handle it. They put me in the red but I quickly climbed out. I have seven more Soviet D-Checks coming due soon and they don't worry me at all. C-checks? Please.  ::)

Now, if you are deep in the red when they start... Well, best of luck. Get another loan if you can.

RyansTechTips

  • Former member
Re: C Check Season is Looming
« Reply #11 on: July 29, 2012, 11:52:17 AM »
Luckily I have been able to handle the C checks i regret getting these 10 727's. I'm so happy the lease on them all expires in 1997 when I can replace them will new 737-800's :)

Offline swiftus27

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Re: C Check Season is Looming
« Reply #12 on: July 29, 2012, 12:05:36 PM »
You know, I've never had any trouble with C-Checks with the one exception of the time I built an airline entirely out of 20 year old BAC 111s. That went downhill quickly... In DoTM I recently got through six D-checks on Tupolev Tu-134Bs while running on very thin cash flow so I think the whole maintenance thing is overrated. If your airline is decently profitable, you should be able to handle it. They put me in the red but I quickly climbed out. I have seven more Soviet D-Checks coming due soon and they don't worry me at all. C-checks? Please.  ::)

Now, if you are deep in the red when they start... Well, best of luck. Get another loan if you can.

biggest effects are the first and second years...  after that, they're much more anticipated and easily dealt with.

Offline Transtar

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Re: C Check Season is Looming
« Reply #13 on: July 29, 2012, 02:33:47 PM »
My 727s have all been leased for up to 11 months max - depending when the C-check was next due. Already dumped the first one a few days before its C-check, and replaced it with a shiny new A320. Got enough A320s and F100s ordered now to keep this going with the rest of my 727s, which will all be gone in the next 9 months.

 

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