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Author Topic: [-] Reselling Used Aircraft  (Read 496 times)

Offline Starshipper

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[-] Reselling Used Aircraft
« on: June 27, 2019, 07:01:35 PM »
Its getting a bit annoying that a few big airlines are buying aircraft (6B) for a low price on the used market, and then immediately putting them up for sale at 1.5 million more than the price they bought them for, with no leasing options. This spoils it for those that want to lease used aircraft.

Perhaps a rule that says if an aircraft is purchased from the used market or from a lease, the airline has to own the aircraft for one year before they can resell it again would stop this from happening.
« Last Edit: August 20, 2019, 09:53:10 AM by Sami »

Offline DanDan

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Re: Reselling Used Aircraft
« Reply #1 on: June 27, 2019, 08:08:22 PM »
its actually not so much the big airlines that do that. big airlines usually are using the planes themselves. but smaller airlines can make really a lot of money to make a difference by trading in planes... its about being attentive at the used market, preferably coordinated attempts to fish good planes of the market when it refreshes. i am not in GW1, but try joining an alliance - that can be helpful!

Offline gazzz0x2z

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Re: Reselling Used Aircraft
« Reply #2 on: June 27, 2019, 08:36:11 PM »
that's called brokering. And it is often used within one alliance as well. For sure I plead guilty of having fed countless DC6s & Constellations to my alliance fellow members in currentGW2...with some profit, indeed.

You don't think I'd make money out of SGN in the 50s with just flying 3 pax and a half to Singapore? I didn't. I did just broker. Brokering is part of the game. It's a risky activity as well, I had to sell some birds far under their purchasing cost. Overall I made good money, though,but as said dandan, it's an effort. It's not free money.

Offline dmoose42

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Re: Reselling Used Aircraft
« Reply #3 on: June 28, 2019, 02:46:32 AM »
As an airline making 40 million or something a quarter (currently number 4 in profits) - I can say such brokering is scarcely worth the effort - like do I want to be scouring the UM just to maybe flip a couple planes a quarter to add a couple million bucks of profit? Just not worth it.

Now obviously if I know an alliance member needs a type I would grab, but those would be private listed. I agree with dan that it’s the airlines where that million dollars would make the huge difference are the ones that are more into the market. For me, not worth my time.

Offline gazzz0x2z

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Re: Reselling Used Aircraft
« Reply #4 on: June 28, 2019, 10:18:08 AM »
(.../...)Now obviously if I know an alliance member needs a type I would grab, but those would be private listed. I agree with dan that it’s the airlines where that million dollars would make the huge difference are the ones that are more into the market. For me, not worth my time.

Play in SGN, or even in WAW, and the difference will be huge. I made sometimes just 200k$ on CV340s, but those 200k$ were heavily needed to open a new route. And, once again, it's a risky business. I lost money on some B377s(not all) and a few others.

Offline dmoose42

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Re: Reselling Used Aircraft
« Reply #5 on: June 28, 2019, 11:51:28 AM »
Agree, for smaller airlines - brokering can have a huge impact. I was reacting to the “a few bug airlines...” comment.


Offline Starshipper

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Re: Reselling Used Aircraft
« Reply #6 on: June 28, 2019, 04:16:09 PM »
Some of the 6Bs I have checked recently have been purchased and then immediately put up for sale at their highest price. I am not saying to remove the brokering feature, but just change it on the used market so that planes that are purchased can not be immediately resold on the public market, and allow those who want to lease to be able to do this.

Offline Verto

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Re: Reselling Used Aircraft
« Reply #7 on: June 28, 2019, 05:26:52 PM »
Some of the 6Bs I have checked recently have been purchased and then immediately put up for sale at their highest price. I am not saying to remove the brokering feature, but just change it on the used market so that planes that are purchased can not be immediately resold on the public market, and allow those who want to lease to be able to do this.

Why though? If they can find a buyer at that price then it’s a win win for two airline CEOs.

Offline schro

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Re: Reselling Used Aircraft
« Reply #8 on: June 28, 2019, 05:38:34 PM »
Some of the 6Bs I have checked recently have been purchased and then immediately put up for sale at their highest price. I am not saying to remove the brokering feature, but just change it on the used market so that planes that are purchased can not be immediately resold on the public market, and allow those who want to lease to be able to do this.

When you see this play all the way through, flipping planes for fun and profit great until it's not. If people get too aggressive with it, they will hit a wall where the prices come down when the market becomes saturated with those planes. This will leave people that bought them at fair price and are trying to sell for max price with a bunch of inventory that they don't want and can't move for a profit (and sometimes, can't move at all, even a few game months after successfully selling for max price).

The other consideration is that for the larger airlines, there's simply more money to be made by opening new routes and focusing on their own operations than flipping planes. Sure, it can be done and will add profit, but it's usually more of a pain than it is worth.

How to "solve" this? Don't buy the overpriced planes on the market. If no one buys planes at those prices, then prices will have to come down - that's how the free market works, which is the whole goal of having the used market feature as it stands.

Offline DanDan

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Re: Reselling Used Aircraft
« Reply #9 on: June 28, 2019, 08:28:49 PM »
How to "solve" this? Don't buy the overpriced planes on the market. If no one buys planes at those prices, then prices will have to come down - that's how the free market works, which is the whole goal of having the used market feature as it stands.

thats the thing: operating the plane is bringing more money than selling it. selling it is the thing small airlines do that have no use for the plane because no demand to cover - and big airlines can buy the planes because they need to expand. i dont consider it a problem. of course its a thing that needs a lot of time to be invested, because the returns are rising with time spent on finding planes, but in the end, the whole game depends on how much time you invest.

 

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