I need to cancel an aircraft lease.
On the "settings" page, I have checked the box to automatically renew leases for one year.
However, for the individual aircraft I do not want to extend, I have selected the option to NOT renew. The red X has appeared.
Will the lease end and the aircraft be removed from my fleet, OR will the "automatic" option over ride the cancel? In other words, do I have to manually cancel the lease (for the required penalty)?
I think you have to wait for the mandatory period of the lease to pass, after which the (Terminate Lease) option appears on the aircraft page.
Unfortunately, you would have to pay 50% of the remaining lease cost.
Quote from: Karl on March 18, 2013, 11:52:23 AM
I need to cancel an aircraft lease.
On the "settings" page, I have checked the box to automatically renew leases for one year.
However, for the individual aircraft I do not want to extend, I have selected the option to NOT renew. The red X has appeared.
Will the lease end and the aircraft be removed from my fleet, OR will the "automatic" option over ride the cancel? In other words, do I have to manually cancel the lease (for the required penalty)?
No, the aircraft with red X will not renew automatically, it will disappear (will be returned to lessor) at the end of the lease period.
Quote from: JumboShrimp on March 18, 2013, 01:26:17 PM
No, the aircraft with red X will not renew automatically, it will disappear (will be returned to lessor) at the end of the lease period.
This is what I hope will happen.
Yeah, the aircraft will be returned at the end of the lease period but the routes for the aircraft will still exist. So you can either re assign the routes to a different one or close the routes and use some of the slots at your base airport.
Thanks.
The routes have already been assigned to new aircraft. The old aircraft have just a few weeks remaining on their original leases. The button to NOT renew has been checked. When every dollar is critical, why waste it on cancelling a contract a few weeks early when it is not necessary.
Question answered.
Thanks. :D
Quote from: Karl on March 18, 2013, 09:56:50 PM
Thanks.
The routes have already been assigned to new aircraft. The old aircraft have just a few weeks remaining on their original leases. The button to NOT renew has been checked. When every dollar is critical, why waste it on cancelling a contract a few weeks early when it is not necessary.
Question answered.
Thanks. :D
Let me add one thing:
If the aircraft is no longer flying, you are still 100% of remaining lease. When you terminate, termination fee is only 50% of the remaining lease. So you save some money by terminating lease of an idle aircraft you intend to get rid off...
Quote from: JumboShrimp on March 18, 2013, 10:01:07 PM
Let me add one thing:
If the aircraft is no longer flying, you are still 100% of remaining lease. When you terminate, termination fee is only 50% of the remaining lease. So you save some money by terminating lease of an idle aircraft you intend to get rid off...
Good advice. Thanks. I was being penny wise and pound foolish. Now, I see that an aircraft sitting idle cost $x.xx per week. That cost x the number of weeks would cost much more than cancelling the lease.
The only down side is that a cancellation is a one-time hit to the bottom line. Fortunately, my bottom line is healthy enough to take the hit.
So, the cancelling bite is better than a long-term smaller, but eventually more costly bite.
Thanks to all.