Questions about buying/leasing new aircraft.

Started by pndsc, May 12, 2014, 03:45:31 PM

pndsc

Its been a long time since I was in a position to place a large-ish order for new aircraft and I have a couple of questions:

1) If I go for a 15 year long lease term, does the lease price decrease over time?

2) Is there an advantage to breaking my order into multiple parts to get more planes delivered faster?

3) (Kind of connected to 2) if enough orders are made, will the production rate increase? does anyone know the threshold for this effect to start taking place? Thanks.

Infinity

No, no, yes (but you obviously can't trigger it as a single player)

bdnascar3

 
Quote from: pndsc on May 12, 2014, 03:45:31 PM
1) If I go for a 15 year long lease term, does the lease price decrease over time?


The monthy payments will be less then shorter terms, however one thing to keep in mind, after about 7 years the cost of leasing is more then the original cost of buying outright. Also D check's come into play around 7-8 years and that can be almost 50% of a new plane. If your going to lease instead of buy, your better off leasing new planes every 7-8 years keeping your average age down as well as the costs to operate.