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Author Topic: Minimum Lease Period for Owned Aircraft on Sale  (Read 496 times)

Offline FlyTO

  • Members
  • Posts: 260
Minimum Lease Period for Owned Aircraft on Sale
« on: August 08, 2012, 06:17:07 PM »
We have a maximum lease period already in place, for e.g 6months or 1year or 15years, etc.

Why not have a minimum lease period introduced, for e.g 8years, 12years, etc.

I think this will make leasing out aircrafts more appealing and protecting the owner/airline/broker of the plane so the leasee will need to perform the C-check and D-check voluntarily or face a higher early contract termination fee.

exchlbg

  • Former member
Re: Minimum Lease Period for Owned Aircraft on Sale
« Reply #1 on: August 08, 2012, 08:09:32 PM »
This has been discussed before.
You still have the option to lease for higher price, but you have strong competition by system aircraft brokers.
If used market is empty of desired planes, people tend to lease longer and more expensive. But in the other case (hundreds of same model on market) no one will ever touch your expensive/restricted plane.
You still have the option to just sell.

Offline EsquireFlyer

  • Members
  • Posts: 1327
Re: Minimum Lease Period for Owned Aircraft on Sale
« Reply #2 on: August 18, 2012, 04:38:01 AM »
If the main purpose of leasing a plane out is to force someone else to D check it for you, then maybe leasing is not a good option for you.
Lessees are typically not going to take an offer that screws them.

As noted above, you always have the option to sell the plane if you don't want to do any more maintenance on it.

Offline Jona L.

  • Members
  • Posts: 3361
Re: Minimum Lease Period for Owned Aircraft on Sale
« Reply #3 on: August 19, 2012, 09:40:04 AM »
If the main purpose of leasing a plane out is to force someone else to D check it for you, then maybe leasing is not a good option for you.
Lessees are typically not going to take an offer that screws them.

As noted above, you always have the option to sell the plane if you don't want to do any more maintenance on it.

Well, if lessees return their aircraft shortly before a D-check, and try to screw over the other company I don't see where this would be fair either...

So say you have a new plane, 7.7yrs to D-check... what is most likely to happen? right: someone takes it for 7.5yrs!  And If we could set minimum lease periods, we could say: take the a/c for at least 8 yrs, to make the D-check you are trying to avoid at the other airline's cost.

I see this over and over again, and it is sickening me. It is a bit less disgusting if you do it with planes from the AI brokers, but from other players this is just... bad sportsmanship.

IRL Airlines have contracts about their leases, that include part payments for Larger Maintenances in case the plane is returned earlier, based on the %age of time they used before the check. (so say Airline X leases the plane from Airline F for 4 yrs, it would pay 50% of the D-check cost, as it used the aircraft for 50% of the time till the next one) And the next airline, despite taking it through the D-check would also only pay the %age of time they used the a/c.

As Christian said, this has been discussed, and I don't actually know what sami made out of my old request, but one could try the search function to find it ;)

cheers,
Jona L.

 

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