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### Author Topic: Operational lease - how much to fork out  (Read 998 times)

#### janegilr

• Former member
##### Operational lease - how much to fork out
« on: July 19, 2010, 08:00:05 PM »
Hi, I'm pondering operational lease to obtain new planes. But as English isn't my first language I'm a bit confused about the terms (and quoting):

"The sums above are counted to reflect the status when all aircraft from this order have been delivered. For operational leases you must pre-pay the first 5 months of the leasing contract in advance, and also pay 1 month's lease as a delivery fee. "

Does this mean that if I lease, say, 7 aircraft at 250K each, I _first_ will have to pay 5 months x 7 aircraft x 250K = 8750 000 when I place the order, and _then_ 250K at delivery of each aircraft?

And what does the sum quoted as "Order confirmation" mean? 'Cos it can't get it to fit with monthly lease prices in any way...

Thanks for any help,
Regards,
Dazed & Confused

#### shutupiamdreaming

• Former member
##### Re: Operational lease - how much to fork out
« Reply #1 on: July 21, 2010, 10:12:42 AM »
Does this mean that if I lease, say, 7 aircraft at 250K each, I _first_ will have to pay 5 months x 7 aircraft x 250K = 8750 000 when I place the order, and _then_ 250K at delivery of each aircraft?

Yes. The 250k delivery fee will be drawn from your bank even if you don't have that amount of money. You'll just have a negative balance then. And when you've paid the first 5 months lease for every aircraft, you won't have to pay monthly leases the first 5 months after delivery.

And what does the sum quoted as "Order confirmation" mean? 'Cos it can't get it to fit with monthly lease prices in any way...

That's the 5 months x 7 aircraft x 250K = 8 750 000 and is what you'll have to pay up front. If it doesnt fit the monthly lease price, look below under Discounts. If you signed a 7 year lease periode, you'll get 3.5% discount on the order confirmation.

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