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Author Topic: New Aircraft  (Read 590 times)

Offline Shmant

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New Aircraft
« on: October 04, 2015, 07:23:45 AM »
What advantage is there of having new aircraft over used aircraft? I recently had some new aircraft delivered to replace my old ones and my airline is a lot less profitable. With the old aircraft, we got as high as $17,000,000 roughly a week, but with new aircraft, we usually get around $9 to 12,000,000 a week and I still haven't replaced them all yet.

Offline Matt Elphick

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Re: New Aircraft
« Reply #1 on: October 04, 2015, 12:22:39 PM »
If they are part of a different fleet group then the commonality costs could be what is hitting your profit. or if they are on new routes you need to wait for the load factors to build up.

Offline schro

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Re: New Aircraft
« Reply #2 on: October 04, 2015, 12:40:53 PM »
Main variables are that new planes typically have a higher cost of ownership (purchase/lease cost) while older planes have a higher maintenance cost. In most cases those two balance each other fairly well..... Though, once you get into the mid 20s on age it jumps the shark on maintainence costs even though that's not realistic for some models.....

Offline gazzz0x2z

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Re: New Aircraft
« Reply #3 on: October 04, 2015, 01:41:16 PM »
what others said plus :

(I'm assuming it's the same model)

_are they popular models? If everyone uys this model(A320, for example...), then the new price is very high...and the lease cost goes with it
_are they better than your old flying planes? If you replace A320-200 by neos, then you'll spare a lot in petrol. It should make the difference. But if you replace a 15 years old A320 by a brand new one, much costlier to lease, just slightly cheaper to maintain, you're on for a nasty surprise.

If you need to lease new planes, consider Russian steel. Especially after 2000. Or less popular models like the Fairchild-Dornier 928, the C919... Unless they are absolute crap(even if you pay it 1 cent, a Do328JET is not worth it). The gain you make thanks to the low leasing price largely enough to compensate the higher maintenance & fuel costs.

The best planes(Ejets, A320s, B737s) are better bought than leased, especially new. If you can't buy, stick yourself to the used market for planes around 10-20 years.

Offline Shaowman

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Re: New Aircraft
« Reply #4 on: October 06, 2015, 12:06:11 AM »
What advantage is there of having new aircraft over used aircraft? I recently had some new aircraft delivered to replace my old ones and my airline is a lot less profitable. With the old aircraft, we got as high as $17,000,000 roughly a week, but with new aircraft, we usually get around $9 to 12,000,000 a week and I still haven't replaced them all yet.

I don't know what your specific situation was but there are many benefits to owning aircraft in Airwaysim.

Off the top of my head

1. Increased company value (higher credit rating, better interest rates, more funds available)
2. No lease cost (generally an aircraft costs the same to buy as lease for 6.583 years (with no discounts)) So if you're leasing a plane you are constantly paying.
3. Cost comparison for new aircraft new B757-200's in one of the current game worlds was as follows
    -70.3m 890,000/month no discount
    -with a 50ac order discount of 21% a new plane would cost 56.2m instead of 70.3m
    - with 15 year lease and 8% discount it would cost 58.7 million after the first 6.583yr(79mo) or 134 million over 15 years....
    ----so 134/56.2=238% more expensive to lease the same new plane over 15 years.
    -now with that said when the plane was released I placed orders for a huge discount at 31.47m or 398,000/mo, even those cheap planes would cost 83.78mil over 15yr
4. Survival ability-though higher upfront costs and the potential to BK your airline if you mis calculate your airlines ability to accept deliveries in the future owning your aircraft gives you a distinct advantage over your competitors.  Most western aircraft have a useful life of 24 years, I usually budget russian planes for 8-14 before MX costs start reaching a point that it is more cost advantageous to buy a new plane. I'm not going into that here as you would pay mx under long lease or purchase....
but using the 757 example if I own the plane for 15 years I get a comparable lease price of 312k/mo vs 743k/mo or 431k/mo less cost... with a fleet of 100 planes thats 43.1m/month or just over 10m/wk less expenses that you have for your airline.... and that doesn't count the insurance savings, or scrap costs or ability to sell/lease the aircraft for it's remaining value.
« Last Edit: October 06, 2015, 04:55:43 AM by Shaowman »

Offline schro

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Re: New Aircraft
« Reply #5 on: October 08, 2015, 01:20:49 PM »
I don't know what your specific situation was but there are many benefits to owning aircraft in Airwaysim.

Off the top of my head

1. Increased company value (higher credit rating, better interest rates, more funds available)
<snip>
4. Survival ability-though higher upfront costs and the potential to BK your airline if you mis calculate your airlines ability to accept deliveries in the future owning your aircraft gives you a distinct advantage over your competitors.  Most western aircraft have a useful life of 24 years, I usually budget russian planes for 8-14 before MX costs start reaching a point that it is more cost advantageous to buy a new plane. I'm not going into that here as you would pay mx under long lease or purchase....
but using the 757 example if I own the plane for 15 years I get a comparable lease price of 312k/mo vs 743k/mo or 431k/mo less cost... with a fleet of 100 planes thats 43.1m/month or just over 10m/wk less expenses that you have for your airline.... and that doesn't count the insurance savings, or scrap costs or ability to sell/lease the aircraft for it's remaining value.

1. Not exactly correct. Your company value does not increase as it is recorded as an asset for asset transaction and then depreciated from there, meaning, purchasing itself does not increase your company value. Additionally, credit rating does not appear to be tied to ownership of aircraft, but rather revenues and company value. Additionally, loan funding is capped at a maximum value that renders it fairly useless anyway, thus, once you're up and running, loans aren't really worth bothering with.

4. Often times, airlines that buy before they are ready will get bankrupted by the cost of the incoming planes on purchase rather than it leading to them having a better ability to sustain a downturn. Imagine if fuel doubles, erases your entire profits, and you needed those to pay for planes coming in? Good luck with your bailout.

 

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