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Author Topic: Minimum lease period  (Read 1871 times)

Offline JumboShrimp

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  • Posts: 6468
Re: Minimum lease period
« Reply #20 on: May 04, 2012, 02:49:13 AM »

If this change is implemented, it would not mean that you are forced to perform the D check.  You can still terminate the lease before the D check.  It is just that you may have to pay some lease termination fees.  On an old aircraft, those are peanuts.

This change, if implemented, is far less what Jona (and myself) would like to see.  It is really a very minor change.

Let me give you an example.  A 22 year old A320 may have a lease price of 250,000 per month.  Suppose the lessor sets the minimum lease period that would take you 1 year past the D check.  So at the time of the D check, your choice is to take the D check, and pay 7,000,000 or to terminate the lease.  Lease termination fee would be 1/2 of 1 year lease of $3,000,000.  Or $1,500,000.  So if you really want to stiff the lessor, you can still terminate the lease, pay $1,500,000 and leave the lessor with a net $5,500,000 bill for the D check.

If you really despise the lessors, you may terminate on a day before the D check, so that the lessor does not have a chance to scrap the aircraft.

Offline JumboShrimp

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  • Posts: 6468
Re: Minimum lease period
« Reply #21 on: May 04, 2012, 02:51:09 AM »
Not at all, I just reflect the price accordingly. Has to have at least the value of the check taken off if you want it to sell, or maybe even perform it yourself (not an option when you don't fly that fleet).

Actually, with the latest changes, you can do a check of a fleet that is not in your service without incurring the fleet un-commonality penalty.  The fleet is only included when you have a flight scheduled in the fleet.


  • Former member
Re: Minimum lease period
« Reply #22 on: May 27, 2012, 11:19:12 PM »
It's the market at work : as a leasor, you may want maximum return on the value of yr craft , as a lessee, that level of cost doesn't make economic sense : so one looks to reduce that cost by avoiding additional expense, such as returning them just prior to them pesky expensive D checks : so, force the leasee to pay them by using min/max terms : market again, if your terms don't reflect that additional cost to the leasee, it is economic suicide to take yr craft : you'll probably get it back prior to its D check via the liquidators anyway.

Perhaps the in-game leasing model is flawed, in RL market terms, but it's what we have to work with. Adding min/max terms is good, but I don't see it doing much beyond adding a level of enforced 'honourable' behaviour which, if not reflected in the overall lease costs, will just give us a lot of 'honourable' bankrupts, especially amongst smaller fleets where losing a craft for a month or so or more, along with its revenue, as well as paying for the D check itself, can destroy the best laid plans...

Re: Jumbo's point that you can just early-terminate the lease at less cost than the d-check (on older craft) and it all becomes a bit moot anyway : some-one wants to stiff you on the D-check, they still can  :'(

« Last Edit: May 27, 2012, 11:26:41 PM by brique »


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