if i were to lease say 20 new 737's and the waiting list is huge
can i change some of them to direct purchase if it is well in
advance and is there a penalty involved
The only stupid question is the one which isn't asked :)
To change the order from leased to direct purchase, you need to do it 10 months prior to the delivery of the target airframe. So...yes you can purchase it instead of lease it as in the initial order. Whether you get a penalty or not, I'm not sure. Maybe someone else can enlighten us.
Quote from: ArcherII on August 26, 2011, 08:23:33 PM
The only stupid question is the one which isn't asked :)
I disagree, there are plenty of stupid people who ask questions.... lol!
yes, you will possibly lose some/all of your prepayment.
ALSO, MAKE SURE YOU DONT GO AN ORDER 25 733s KNOWING THE 734 WILL BE RELEASED LATER! You can't change the orders to a different type unless that type was already released at the time of your original order.
cheers swiftus i haven't made any order yet i was just fomulating a plan to try and get on the
production list in a large numbers of leased planes then sneakly switch to purchase them when
i can afford them
dont leave yourself cash poor.
when gas gets really high, it is nice to have a reserve
You'll lose the lease prepayment and the volume discount if you convert them later.
hehe yep, im have another question too...
is to possible to use a closed airline name and logo in AWS ?
Like PanAM? No. There're trademark rights for it yet. But maybe other extinct companies lost everything, included the right to use their own name.
Advice. Try to come up with your own, it's more enjoyable IMO.
Quote from: schro on August 27, 2011, 05:37:47 AM
You'll lose the lease prepayment and the volume discount if you convert them later.
You'll lose the discount, but the initial 6month lease prepayment is included when you convert to direct purchase from my experience or similar cost.
For example, an order of 50 A320s, I have about 10direct and 40 on 15y lease more than 10months away that I later change to direct purchase.
The direct purchases is 20M upfront, 31M on delivery = 51M ( that's a 15M discount X10 = savings of $150M)
Leased ones are prepaid 4.2M, when changed to direct purchase, price to pay now is 22M, price to pay on delivery 40M = 62M
Where as without the large order discount of 50AC and direct purchase discount, a regular priced A320 is 66M
If anything, you lose the 200K left over when changing, but IMO it is better to own new planes than to lease them.