Buy or Lease

Started by ArmaghanJalil, December 29, 2014, 02:03:22 PM

ArmaghanJalil

Hi.

In general, buying aircrafts will be cheaper in the long run then to lease the aircraft. If I plan a fleet of A320s and ATRs, should I buy or lease the aircrafts considering that BWs are only a few years long. How ever if own aircraft, it is easier to get loan for that...

I have an airline which is generating positive revenue, but very little, but I am at a point where extension possibilities are limited, and I don't want to open a new base with 35 million loan to expand, so I am considering restart, to try different stratigy.

In previous BW by the time I had money to purchase my own A320, the game was about to end, but I bought one anyway to see the difference in lease cost vs insurance etc. It bankrupted me.