Leasing Prices

[DenisG]

A general thought with hope on your comments:

I consider the leasing rates for airplanes too low. E.g. Leasing a DHC-7 currently in Jet Age 2 will cost you almost 120,000 USD per months. This equals a leveraged finance of 9,200,000 USD at 7% over 101 months (8.5 years).

1. The final asset acquisition payment hence is not included (8.5 years seems obviously too low for amortization, when linear depreciation should be at around 15 years).

2. A 7% interest-assumption is very low because it presumes a very high financial rating and because interest rates at the beginning of the 1980s were over 10% in the US due to inflation (Government Bonds yielded more than 14% in 1981 e.g.).

3. Leasing must incur higher risk because the lessor is owning the plane and carries the risk of premature cancellation and bankruptcy of the leassee. Hence, much higher interest charges.

For the game, those very low leasing rates enable a very fast growth, which keeps the game interesting at the beginning. Later on, say after 4 years, it leads to a premature establishment of monopoly situations. As proposed in other posts, I would also recommend the modification to make owning planes more attractive, while leasing should not automatically be the 'easy' way to expansion. Perhaps one could connect the unsecured loan interest to the lease price calculation?

What do you think?

Best regards,

Denis

[laurikoo]

I second that.

[JumboShrimp]

I agree, but Sami disagrees:
https://www.airwaysim.com/forum/index.php/topic,25057.0.html

[virtual]

well obviously the problem is not the leasing price but the deposit price, in fact it comes cheap to lease plane because the deposit is just 4 months of advance booking,  while in real life  i m pretty sure there is a stronger deposit in case you damage the plane for instance, like when you hire a car or anything u have a deposit.

A deposit of like 33 % of the value of the aircrafts   ( to be sure refounded when the lease is over ) will give certainly more attraction on buying  them cash, since you get a discount for large orders. And also that will attract company to lease more planes, than just the actual brookers