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Author Topic: Parking Fee/Broker Tweaking -- the ultimate solution  (Read 322 times)

Offline LemonButt

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  • Posts: 1895
Parking Fee/Broker Tweaking -- the ultimate solution
« on: December 08, 2013, 06:34:10 PM »
I created a new thread because I have a new idea.  Obviously in the short period the parking fee/scrapping/maintenance tweaks have been made people aren't too crazy about it (myself included).

Instead of a parking fee, mothballing etc. how about just having an aircraft leasing department for staff?  The truth is airlines that have leasing arms have specialists that handle this type of thing.  The more aircraft you have leased/for sale, the bigger the staff is.  It would work just like any other dept, except it is less morale sensitive unless you're firing large numbers of leasing dept employees.  This means if you have 1 aircraft for sale/leased, you are paying a small leasing dept salaries.  If you have 10 aircraft for sale/leased, it is ~10x the size, etc.  No more will buying/leasing aircraft be a 100% profit margin game--there are costs associated with it.  This will encourage players to fly the aircraft in their fleet (the whole point of the game) or liquidate the assets, which takes me to the next point...

Broker tweaking.  The problem is the used market is polluted with aircraft that need heavy checks.  The new changed address this partially, but not even close to the level it needs.  Players with less popular aircraft find it impossible to get rid of aircraft and are forced to scrap it.  While it is nice you can scrap aircraft <10 years old with 40% condition or anytime after 10 years, it still doesn't solve the problem.  Scrapping aircraft helps no one and as I mentioned in other threads IRL there is a secondary market whether it is third world, corporate fleets, etc.  So the ultimate solution would be to have a "broker's best offer" button that displays the highest price a broker is willing to pay for the plane TODAY.  If you click it, it sells immediately to a broker at that price, who updates maintenance and relists the aircraft for other players to lease.  The best offer value would be determined by the book value and number of aircraft operating (a type with 4000 in service would have a higher % of book value than one with only 400, for example).  The book value factors in age, maintenance, etc. to many variables would already be considered.  So if you have an old 737, the broker value might be 70% of the book value.  If you have an old Tupolev, then it could be 45%, etc.  This would allow players (like myself) who choose to use less popular/secondary fleet types to actually sell an aircraft at a reasonable price based on market conditions.  Don't get me wrong--I'm very happy I can scrap my aircraft now, but it reduces the options for new airlines looking to the used market if the aircraft is destroyed versus relisted for sale.  The biggest obstacle for an airline flying a fleet that is no longer in production is expansion--if I add this fleet to my airline, how many aircraft would I be able to get my hands on?  If less popular aircraft are destroyed AND out of production, the fleet type becomes even less and less desirable, which is why we shouldn't be scrapping 10 year old aircraft, but relisting them with brokers.  If you are clicking the broker best offer button, you aren't paying a huge leasing dept either because you're getting rid of aircraft.  If you want to list aircraft for 50% above book value and they end up on the market for 10 years, you are paying leasing dept salaries for 10 years.

The ultimate goal is to give players an avenue to get rid of assets when they want to and discourage aircraft from being parked.  The only way to make this happen is to make the brokers more active and facilitate aircraft churn, which is their purpose and what they get paid to do IRL.  If players want to clog up production lines of popular aircraft they intend to resell and never fly, let them.  They'll be paying leasing dept salaries now.  If players want to divest assets at discount rates, they can (and it is encouraged).  This system would encourage and facilitate airlines to divest aircraft they don't want and discourage the practice of clogging up production lines for aircraft they never intend to fly and list at exorbitant prices.

Now I know there will be naysayers who lease out large numbers of aircraft, but IRL someone has to administer contracts, list the aircraft for sale, file paperwork with the authorities, etc.  Additionally, there is a feature request to "send the FAA" to check a plane and ensure aircraft are maintained and kept airworthy so they aren't returned at 20% condition.  If you had a leasing department, it could be part of the contract that if you lease from a player you have to keep it maintained above X condition and if you don't, a player can send the leasing dept to repossess the plane.

Offline Jackson

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  • Posts: 279
Re: Parking Fee/Broker Tweaking -- the ultimate solution
« Reply #1 on: December 24, 2013, 07:18:18 PM »
Yes. Brilliant idea.

brique

  • Former member
Re: Parking Fee/Broker Tweaking -- the ultimate solution
« Reply #2 on: December 24, 2013, 07:57:52 PM »
Interesting ideas. I agree 100% that the AI brokers should be 'tasked' with maintaining UM liquidity to a far greater degree than currently. I'm watching how the pricing changes will affect the UM, my feeling is we'll see a lot more reasonably priced 8-12yo aircraft in fair condition which will be good news for start-ups.

the 'send round the FAA' issue has given me a few ideas in the past : my current one is this : the owner pays for maintanance as part of the contract (would need the lease costs tweaked to cover that) : if no mx is scheduled by the user, then it defaults to a set time for a/b checks (e.g 00.30 Saturday) and thus gets done regardless of any flight scheduling in place : I think this would give the 'lease staff' (another useful idea) more 'work' to be doing to justify their costs. I also think it reasonable that the owner bear a higher part of the mx for older aircraft, so a fixed tweak to the lease calculation of maybe 3 to 5% would cover most cases adequately. Then if the user bk's, the aircraft comes home still in good condition with checks up-to-date.

Further to this, if the user is in dire straits, then perhaps an option to reclaim the aircraft after 2-3 missed payments could be exercised. This would mean a few tweaks to how lease payments get done by airlines in the red, some leeway would have to be inbuilt but it could run alongside the regular Bk warnings.

I'd see such a proposal also benefiting the UM: short-timed mx aircraft would become more desirable if the new user doesn't have to worry about c-checking, for example, after 3 months and the cash-flow problems that can cause for less well-off airlines or new start-ups. It would also reduce the number of 'back the day before d-check' returns : if the user knows they have already paid for the d-check over the life of the aircraft, then keeping it for a few more years makes more sense.

For the owners, it would end 'early' c/d checking to keep their offers desirable : end getting aircraft back in shoddy condition and, with the lease staff 'running' all that department, add a reasonable level of costs to the exercise with a reasonable beneficial return for the expense.

Offline LemonButt

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  • Posts: 1895
Re: Parking Fee/Broker Tweaking -- the ultimate solution
« Reply #3 on: December 25, 2013, 03:13:42 AM »
I don't want to make this a continuation of the other thread which is already closed/locked, but IMO it makes much more sense for brokers to be providing the used market liquidity versus hoping a large airline buys up a bunch of less popular aircraft to lease out on the used market, which was one of the justifications for allowing large airlines to order a bunch of aircraft they never plan on flying.

A perfect example is the ATP in DOTM.  There have been 73 aircraft produced and I own all 73.  If I don't keep putting in new orders then production will be shutdown and I will be forced to retire them all or add another fleet type in order to expand.  There are no mega airlines stepping in to order the aircraft to create liquidity in the ATP market and IMO there shouldn't be--that's what the brokers are supposed to do.  It doesn't make sense for an airline to buy ATPs they never plan on flying because there is exactly one customer in the market already.  The only way it would make sense is if they were to buy 20+ of them in an attempt to create new customers.  Also, this is the ATP we're talking about--the second most fuel efficient aircraft in the game.  The problem is even worse if you choose to fly Russian metal or 10-30 seaters.

 

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