Cheaper in the long term with new aircrafts ?

[[ATA] Sunbao]

Hi people im currentley looking at som new aircrafts to replace my fleet of againg aircrafts.

But i'am wondering if there in the long term is something to save.

Currentley i have 8 boeing 737-300 with a average age of 11.5 ind i am paying an average fee of 425k a month pr plane. or just over 5 million a year. and will currently cost around 1.5 million in yearly maintenance.
A brand new 737-700 will cost 674k a month or just over 8 million a year. and will the first year cost around 600k in maintenance.

A quick overlook will say me that my 15 year old 737-300 still will be around 2 million cheaper a year than a brand new 737-700, but am i missing some savings in my calculation ?

Between beside it fly a little faster what are making i worth buying 737-700 over 737-300 there is almost 10 million cheaper each.

[[ATA] Sunbao]

No one ?

[Curse]

Old aircraft (7 - 16 years) are often cheaper, but they are old and pax notice this.

But, for example, personally I prefer 11 year old 747-400 because the leasing per month is 1 million lower than a brand new.

At the end it depends on how much money you have, if the aircraft are available on the used market and if you must rise your CI (which is affected by old aircraft) or not.

[marc0o0o0o]

Are you taking in count the fuel savings? Cause fuel prices will go up and in a fuel crisis having a fleet of brand new 737NG's might save your airline.

[[ATA] Sunbao]

Are you taking in count the fuel savings? Cause fuel prices will go up and in a fuel crisis having a fleet of brand new 737NG's might save your airline.

737-300 and 737-700 use almost the same fuel in fact 4 out of 5 engine to the 737-300 use less fuel than the engines for the 737-700

[[ATA] Sunbao]

Old aircraft (7 - 16 years) are often cheaper, but they are old and pax notice this.

But, for example, personally I prefer 11 year old 747-400 because the leasing per month is 1 million lower than a brand new.

At the end it depends on how much money you have, if the aircraft are available on the used market and if you must rise your CI (which is affected by old aircraft) or not.

Okay so you say that i will get more pax and a higher ci if i buy new planes ?.

[Maarten Otto]

Generally yes... but there are always those who can fill a 21+ year old plane.... (Yes I do)

[[ATA] Sunbao]

Well i ended up ordering 25X 737-300 for a sum of 63 205 000 USD. and a monthley leasing rate of around 505k a month in a 7 year lease periode.

But now i wanted some of them to be 737-400 instead so i goes ind and edit 15 of the 737-300 to 737-400, wich will cost me 87k pr plane and 14k ekstra pr month. But hold one if i wanted to buy 25 the price was hvem i ordered the 25X 737-300  70 728 750 USD.

That mean that i can get the plane much cheaper if i just take the cheapest plane first and later edit it to another type in the series.

The same goes for the leease rate now i shall pay 519.500 a month in lease pr plane. But if i had ordered them from the start the price would have been 565k pr month. That means that i over the 7 year lease periode will save almost 4 million pr plane or nearly 60 million in totalt.

That must be some kind of a bug ?

[Sigma]

Yes, it is a bug (a huge one), and it's been reported numerous times.

[[ATA] Sunbao]

Yes, it is a bug (a huge one), and it's been reported numerous times.

Fair enough

[Powi]

Also note that usually you end up paying less when taking 3y lease and then renewing at 1y a time it than taking a 7y lease. The lease price generally lowers every time use renew it.

[MattDell]

Also note that usually you end up paying less when taking 3y lease and then renewing at 1y a time it than taking a 7y lease. The lease price generally lowers every time use renew it.

I did not know that..... damn!

[ACfly]

Also note that usually you end up paying less when taking 3y lease and then renewing at 1y a time it than taking a 7y lease. The lease price generally lowers every time use renew it.

Does this only applies to new aircraft ?

[schro]

Overall, the in-game differences between the 737 Classics and 737 NG's are negligable due to the significantly higher acquisition costs of the NGs. There's not a fuel difference between the types (perhaps in the 400/800 comparison there is), and the 500/600 comparison is actually in favor of the classics.  If you plan on getting 900's, then it might be a good idea to use 700's for the sake of commonality, otherwise, I would stick to the classics (and even older classics).

I've found that the lease + maint costs for a particular model tend to be about the same through the first 20-24 years of a planes life - the lease decreases over tim and maintenance increases over time such that its pretty much a wash...

Also note that usually you end up paying less when taking 3y lease and then renewing at 1y a time it than taking a 7y lease. The lease price generally lowers every time use renew it.

The lease renews based on the value of the aircraft.  In high inflation eras, the value increases over time which will causehigher lease rates.  Also models that go from low demand to high demand may result in higher lease payments.

[Powi]

Does this only applies to new aircraft ?

Depends if orinal price is under value or not. If your original lease price is significantly bellow aircraft value, a long lease term may become cheaper (refer schro's post above.).