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Author Topic: [-] Lease to Lease  (Read 600 times)

Offline T8KE0FF

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[-] Lease to Lease
« on: May 17, 2009, 09:04:30 PM »
This may seem odd although i think differentley.
You know how many people rent houses for e.g. $700 a week... Well, instead of just being able to buy a plane and then lease it a good idea would be to lease it out to another airline for a few months for e.g. $800 so we get $100 a week from it...

Hope you consider it!
« Last Edit: May 17, 2009, 10:32:35 PM by sami »

Jps

  • Former member
Re: Lease to Lease
« Reply #1 on: May 17, 2009, 09:56:31 PM »
But I don't think people rent out houses they have rent, and thus do not own them. You can't lend out something you don't own.

Kontio

  • Former member
Re: Lease to Lease
« Reply #2 on: May 17, 2009, 10:01:14 PM »
But I don't think people rent out houses they have rent, and thus do not own them. You can't lend out something you don't own.

You can sublease something you have leased, I suppose in real life usually a part of a house or apartment you are renting. I don't think it would be a good idea in the game. By leasing you can get new aircraft for a very small downpayment and if you were then able to sublease them for the obscene prices currently commanded on the used market it would just be too easy.

Offline Sigma

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Re: Lease to Lease
« Reply #3 on: May 17, 2009, 10:16:53 PM »
But I don't think people rent out houses they have rent, and thus do not own them. You can't lend out something you don't own.

Subleasing is extraordinarily common in real life, particularly in commercial real estate.

And it's often done in the transportation world as well with aircraft, locomotives, and sometimes even trucks.  Anything particularly capital intensive as aircraft would certainly qualify as.  A bank will buy them, they'll lease them to a leasing company that will manage the assets, and those are in turn leased to airlines.  If you want to get technical, virtually all leasing is done this way, since all are done with money borrowed from a bank that holds title, therefore they own the asset that the leasing company manages.  It gets even hazier with some companies like CIT that handle both financing and leasing in an either/or combination.

However, it would be extremely rare for another airline to lease out its own leased planes.  I may even go so far as to say it just doesn't happen.  It's not a business they want to get into and there's a lot of risk.  Since everyone here is operating an airline and not a lessor, I can't think of any particular reason to have it in game.

There's lots of reasons not to though, Kontio nailed the biggest one.  If you think finding planes now is bad, imagine what would happen if everyone could lease out their leased planes.   People would lease EVERY plane they could get their hands on, then turn around and put them back on the market at inflated prices.  It'd be virtually a no-lose situation (as long as you leased planes even remotely desireable).  People would be forced to pay your inflated prices.
« Last Edit: May 17, 2009, 10:22:20 PM by Sigma »

Offline Sami

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    • AirwaySim - Are you the next Richard Branson?
Re: Lease to Lease
« Reply #4 on: May 17, 2009, 10:32:26 PM »
However, it would be extremely rare for another airline to lease out its own leased planes.  I may even go so far as to say it just doesn't happen.  It's not a business they want to get into and there's a lot of risk.  Since everyone here is operating an airline and not a lessor, I can't think of any particular reason to have it in game.

Agreed.

Jps

  • Former member
Re: Lease to Lease
« Reply #5 on: May 18, 2009, 09:57:41 AM »
Subleasing is extraordinarily common in real life, particularly in commercial real estate.

And it's often done in the transportation world as well with aircraft, locomotives, and sometimes even trucks.  Anything particularly capital intensive as aircraft would certainly qualify as.  A bank will buy them, they'll lease them to a leasing company that will manage the assets, and those are in turn leased to airlines.  If you want to get technical, virtually all leasing is done this way, since all are done with money borrowed from a bank that holds title, therefore they own the asset that the leasing company manages.  It gets even hazier with some companies like CIT that handle both financing and leasing in an either/or combination.

Oh, ok. That's very interesting to know... :)

Offline swiftus27

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Re: [-] Lease to Lease
« Reply #6 on: May 18, 2009, 04:25:24 PM »
Please oh please don't start sub letting planes.

Jps

  • Former member
Re: [-] Lease to Lease
« Reply #7 on: May 18, 2009, 05:49:36 PM »
Please oh please don't start sub letting planes.
Sami already agreed to a statement saying that there is no reason to include this feature to this game. Thus, it will not be implemented.

Offline T8KE0FF

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Re: [-] Lease to Lease
« Reply #8 on: May 23, 2009, 06:22:37 PM »
Thanks anyway  :)

 

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