I just tool delivery of a leased new C300 and want to terminate this lease immediately, but I don't have this option.
I had changed plans about integrating this aircraft in my fleet and there were 3 leases I couldnt cancel because I was out of the allowed timeframe to cancel. So I had to take delivery and was hoping to cancel by paying the normal 50% of the 5 year leasing contract. Now that i received the aircraft, the only options I have are to extend the lease for upto another 4.5 years (which would bring me way after the game ends) or purchase the aircraft (100% of the 5 year lease plus the cost of the aircraft), not to terminate the lease.
Is this a bug, or do I need to wait before I have the option to terminate my lease with a penalty?
There is always a certain mandatory lease period, depending on the length of the lease.
Quote from: sami on June 04, 2012, 05:24:34 PM
There is always a certain mandatory lease period, depending on the length of the lease.
I took the minimum term of 5 years. I am want to cut my losses and want to get rid of this aircraft ( and the 2 other ones I am expecting which I cant cancel) so I dont increase my commonality costs. Isnt it possible to terminate my lease earlier paying a 50% of the 5 year lease term, or how long do I have to wait till I have this option.
When you book a lease it tells you the minimum term you are required to hold it.
For a 5-yr lease I believe it's 6 months.
EDIT: It appears that this is not stated when leasing New. When leasing Used, the minimum is stated clearly. But when buying New, I can't find it mentioned anywhere.
Quote from: PH1517 on June 04, 2012, 09:05:51 PM
I took the minimum term of 5 years. I am want to cut my losses and want to get rid of this aircraft ( and the 2 other ones I am expecting which I cant cancel) so I dont increase my commonality costs. Isnt it possible to terminate my lease earlier paying a 50% of the 5 year lease term, or how long do I have to wait till I have this option.
In order to cut commonality costs, just make sure you don't have any flights scheduled for the fleet you want to eliminate. It will disappear from the commonality calculation.
I know it wont affect my commonality if its not operating but how can I get rid from those C300 from the fleet without buying them with $30 M premium and selling them back on the used market. The others that I had in my fleet allowed me to terminate the lease with a 50% penalty. Paying 50% is better than paying 100% plus insurance.
I think the system doesnt allow a lease cancellation option on a new aircraft. I just wondering how long do I need to wait or should I operate it in order to get the cancellation option?
Quote from: PH1517 on June 05, 2012, 12:46:26 AM
I think the system doesnt allow a lease cancellation option on a new aircraft. I just wondering how long do I need to wait or should I operate it in order to get the cancellation option?
I answer the question above -- it's 6 months.
There's a minimum hold requirement on all aircraft you purchase for lease.
New aircraft obtained on operational leases have a 1-month's fee as a delivery cost then a 5 month advanced down-payment so, you have already paid for a period of 5 months, I haven't seen any other minimum period mentioned in looking at such contracts (unlike used plane leases which will mention a mandatory minimum period).
So, guess you will have to park it for 5 months then check if you can early-terminate then.
I suppose I'll park those beauties and wait ! :)
tks for your answers guys :)
Quote from: Sigma on June 04, 2012, 09:30:21 PM
When you book a lease it tells you the minimum term you are required to hold it.
For a 5-yr lease I believe it's 6 months.
EDIT: It appears that this is not stated when leasing New. When leasing Used, the minimum is stated clearly. But when buying New, I can't find it mentioned anywhere.
Got it! :) you have to wait till you enter you 6th month of lease that you can have the option to terminate the 5 year lease on a new aircraft. The terminate option just appeared on my CS300.