UM suggested pricing

[qunow]

Why I feel like the suggested pricing, upper limit and lower limit of aircrafts in UM does not take into account the D check cost of airframes? These values are almost the same before and after D check despite the D check could worth as much as the airframe itself.

[Zobelle]

Depending on what you need to get out of it you can just set UM min for low demand frame and add the cost of a freshly done D check if you already did it. That's mostly how I've been disposing of my older airframes.

[qunow]

Depending on what you need to get out of it you can just set UM min for low demand frame and add the cost of a freshly done D check if you already did it. That's mostly how I've been disposing of my older airframes.

The thing is, there are freshly D checked aircrafts selling at relatively low price, and un-D-checked aircraft cannot compete with those in term of pricing after considering the cost of D check

[Zobelle]

Then use the comps (Like in real estate) and sell it at a comparable price to these other older models.

Or find someone who uses the type and target them specifically through a PM. You can set a price both are comfortable with paying/receiving and move forward.

[freshmore]

Depends on how you view it from an accounting perspective.

If you owned the aircraft from new and it's about 8 years old and done 1st D-Check. It's probably payed off your initial cost to buy.


3.5million Aircraft earning 40,000USD weekly profit for 7.5 years has earned you 15,600,000 in profit. Okay, weekly profit figures don't quite take into account all costs and will have grown over the course of 7.5 years, but you've very clearly paid off your aircraft. Even at 20,000 per week you have made 7.8 million.

Take into account 7 C checks at say 150,000 and 1 D check at 600,000. That is 1,650,000 in maintenance. That's still 6,150,000 which gives you a total profit of 2,650,000 if you were to scrap that aircraft there and then. I know you can't.

Therefore any money you get back for your aircraft is good. If you sold it for 500,000 your total profit would go to 3,150,000 because you have got some money back on your aircraft.

Even with a D-check and selling for the lowest possible prices, it's very likely that it's made enough of a contribution to your airline to make that not matter. This analysis is limited by weekly aircraft profit only taking into account a limited number of costs.

If the aircraft has been leased:
Lease term * Value of lease

3.5 million Aircraft leasing for 7.5 years at 45,000 per month. That is 540,000 per year, which is 4,050,000 over the course of the lease term, which means a 600,000 at the end of the lease means a total spend of 4.1 million on the aircraft.

What this means is for the aircraft to have been a profitable venture, you only need to make 50,000USD when you sell it on.

Hope this helps! There's a good chance even rock bottom pricing still means it has made a contribution to your airline.

[qunow]

Let's take a 16 years old L649 as an example.

D check price is 2.4M.
Book value of my N187CO, which haven't done second D check yet, is 3.2M.
Recommended price by the UM tool is 3.3M
Min/Max allowed price is 1.6M/6.1M.

However a lot of AI dealers are selling L649 that have been freshly D-checked on the UM at a pricetag of 3M.
That mean, to compete with them, I need to price my aircraft at a price at 0.6M.
However, the tool won't allow me to price my aircraft at 0.6M. The minimum price is 1.6M.

Or in another words,
Are those AI selling those aircrafts at their losses?
Most of those aircrafts sold by AI, like #1554, are freshly returned from lease
I suppose it mean those AI dealers have done D check for those aircrafts themselves.
After dealers pay 2.4M for a D check and then sell them at 3M, the profit is only 0.6M to those AI dealers
While scrapping the aircraft should gain about 0.9M for it, which would be more than the cash they can get back by D checking and selling the aircraft.
Which mean AI dealers are dumping aircrafts onto UM at a losses.



Another more strange example. A freshly D checked M404, min allowed pricing is 1.442M, A M404 about to need D check, min allowed pricing is 1.438M. D check cost is like 0.3M but the min allowed price difference is only 4k

[Tha_Ape]

Yeah, but those are virtual, and they lose money only virtually, and to make things more affordable to players that just joined.
It sucks for the rest of us, but on the other hand it's usually just a million loss here and there.

[Zobelle]

Best you can do is list for either recommended or minimum and hope broker buys it if the players all turn their nose up at it. If it gets within two weeks of the D check. Store (if under 10y) or scrap it.

[freshmore]

As long as Total Profit earned by that aircraft > Capital costs of purchase and all heavy maintenance your aircraft has contributed profitably to your airline over time - Whatever you get back when you sell or scrap the aircraft is a bonus.

In this case, I would list at a low price until the D-Check comes, if no one takes it, scrap it.

[DannyWilliams]

In this case, I would list at a low price until the D-Check comes, if no one takes it, scrap it.

Gotta love those taxable expenses tho

[freshmore]

I mean it's not really a taxable expense, it's a Capital Loss. You don't actually expend any money, rather you write down the value of an asset your airline has.