Direct Purchase Of 747

Started by blahmeh14, May 24, 2010, 03:13:09 AM

blahmeh14

Hi!

My Airline in BW7 just reached over a the half billion value line and i was wondering if it was time to make a direct purchase. I currently have all 747s in my fleet: 742s, 743s, but mostly 744s. All of the 747s are leased, but would it be time to make a direct purchase (with the current production times they would be delivered next year)? I have no loans out and the bank says that I could loan out up to 150,000,000 unsecured dollars. So would it be safe to buy one or two or should I just expand faster (10-20 more) and order some more by leasing? And if it is safe, should I loan out some buffer cash just in case (currently profiting around 12.5 million per week)?

LUX International Airlines

Sigma

If you've got room yet to expand, I'd keep leasing to get the volume of aircraft you need to fulfill demand.

But judging by the amount of cash you've got, I'd also start mixing in some purchases in there as well.  You'll want to get your purchases starting to arrive right about when you think your demand will be largely filled but also when your existing leases begin to expire, so you can swap route real easy.  

And remember, you can put a single large order in and mix in the leases and purchases together so you get the large order discount benefits.  Just say you want to order 20 leases (or whatever) and on the next screen you can swap out the financing or configuration for each unit individually in the order.  So you can phase in the next 20 so that you start obtaining more purchases as you work through the order.