Exhorbitant Re-Lease costs ? ? ?

[Viscount Bailey]

Hey Swift - I really know you are just being playful  - really Ok mate, and me too. I love a good bit of banter and I can take it and I also like to give it!  Anyway - enough of that.  I was just a really new airline (only about a year old ) when this horrible rental increase happened so it was tough on me right then. Now I know better.  So on to your further comment about  " recipe for disaster" in leasing 777s.  I see it differently and actually I'm proving it differently right now.  Here are my best performing aircraft:
HS-BXE - B777-300   1 409 984 USD   
HS-BXC - B777-300   1 268 216 USD   
HS-BXA - B777-300   1 258 699 USD    Leased !
HS-BXH - B777-300   1 195 613 USD   
HS-BXB - B777-300   1 179 585 USD    Leased !
HS-BXK - B777-300   1 150 994 USD   
HS-BXM - B777-300   1 149 572 USD   
HS-BXJ - B777-300   1 108 122 USD   
HS-BXN - B777-300   1 060 401 USD   
HS-BXL - B777-300   1 019 119 USD

In all at the mo, I am operating 15 leased 777-300 with seating at about 400Y 56C 10F and they all make good money (those 2 top ones in my top 10 revenue earners - the others all make between 300K and 850k per week.

it really does depend on what you do with 777s if you're going to lease them. I fully agree... LH 777s on lease are usually always a bit of a hiding to nowhere... - but it's a bit like folk who say "you can't make money with Concorde in this game". There are some that can... just depends what you do with them.
Dave

[groundbum2]

if I might nip into this convo,

I would say leasing NEW 777s is a sure fire way to the bankruptcy court. And I think you nearly proved paying full whack on used ones can be fatal as well. Regardless, they make a lot of money when full, but cost heaps when half full. And if people put smaller LH on those routes it's like Killing Jumbo season all over again.

[swiftus27]

if I might nip into this convo,

I would say leasing NEW 777s is a sure fire way to the bankruptcy court. And I think you nearly proved paying full whack on used ones can be fatal as well. Regardless, they make a lot of money when full, but cost heaps when half full. And if people put smaller LH on those routes it's like Killing Jumbo season all over again.

also, there is many times when people see profitable leases on their screens during the first few months of the lease itself (when there are no lease payments being made).

But, yes.  A new leased fleet of 777s is brutal.    ULH with leased 777s is worse than the 4th fleet penalty. 

[MikeS]

AI broker actions are a bit too dramatic. When there is little demand for a type, prices go down to a very low level. Cool, you say to yourself, I'll start-up my airline with those! All goes well for a while until the AI brokers decide to scrap all those sitting around frames - within a very short time frame. All of a sudden there is almost nothing left of that huge 2nd hand market and the few aircraft that remain magically go up in value to near new prices! All those frames that were aquired on lease will now also have much higher renewal rates.
While I like how this makes the game more challenging it is a bit too dramatic and could be tuned down a tad.
There is also the issue where AI brokers would suddenly convert most used frames to freighters impacting the market severly. Shouldn't they convert a few first and see how the up-take is?

Mike