Operational Lease vs Used Lease? Help please!

Started by Eurowings, June 24, 2018, 08:56:43 PM

Eurowings

Okay heres an example:

Model: 737 Max 8

Used:

5 871 600 + 1 467 900 Monthly

Operational Lease:

11 279 640 + 1 879 940 Monthly

What are the benefits of an operational lease?  :-\

schro

#1
All leases in the game are structured as operational leases (as opposed to financial leases, which are more like a rent to own arrangement).

The difference I suspect would be the selling price of the plane. If you assume a 1 year lease, your monthly lease cost will be about 1/81 of the purchase price (same for new planes). For used planes, you prepay 4 months of lease fees in advance, and for new planes you pay 5 months in advance plus one month as an acquisition fee up front.

There can be differences in pricing between new and used purchases....

racineraiders

Quote from: schro on June 24, 2018, 09:07:07 PM
All leases in the game are structured as operational leases (as opposed to financial leases, which are more like a rent to own arrangement).

If only I could rent to own haha.

racineraiders

Ok so that got me reading...

With Equipment Trust Certificates (ETC), investors place money into a trust that purchases the aircraft and then leases it to the airline — which  then gets to keep it upon maturity of the instrument. Aircraft-financing instruments can get more complex still: For example, Enhanced Equipment Trust Certificates (EETC) may be structured in several tranches or tiers, each with different levels of seniority. The lower the tier, the higher the expected return (and the risk!)

Off to the feature request board lol

wilian.souza2

Financial leases are a nice idea. Lease an aircraft for a while so that you can have the aircraft paid off at the end of the lease. With current operational lease model, when the leases are about to expire and we want to buy the aircraft, often times we have to pay a price not different from of a new aircraft, which is a joke... You can save (lots of) money ordering another aircraft, new or used at the same age!