Fleet Commonality on leased-out a/c

Started by andriitis, November 24, 2011, 01:53:19 PM

andriitis

Do I incur any fleet commonality penaltys if I purchase an aircraft and then put it up for sale and/or lease?

If I have three fleets and purchase, let's say, 3 a/c from another fleet and put them up for sale as soon as I get them, does this harm my fleet commonality?

Sami


swiftus27

Sami, the issue for me is when someone bankrupts or terminates the lease early.  The plane is returned and I am then facing massive penalties to my commonality.   even if the plne isn't flying, I still get the huge hit.

JumboShrimp

Quote from: swiftus27 on November 24, 2011, 10:40:12 PM
Sami, the issue for me is when someone bankrupts or terminates the lease early.  The plane is returned and I am then facing massive penalties to my commonality.   even if the plne isn't flying, I still get the huge hit.

I really thing that should be changed.  When you are not flying the aircraft, there should not be any fleet commonality related charges.

romeozulu

Hi,

Quote from: swiftus27 on November 24, 2011, 10:40:12 PM
Sami, the issue for me is when someone bankrupts or terminates the lease early.  The plane is returned and I am then facing massive penalties to my commonality.   even if the plne isn't flying, I still get the huge hit.

If the a/c is quickly put back up of sale or lease you will not face any commonality issue  8)

ArcherII

Sometimes you can't get close to a PC for a period of time and 1 plane can damage your airline during that time.

JumboShrimp

Quote from: romeozulu on November 25, 2011, 04:57:10 AM
Hi,

If the a/c is quickly put back up of sale or lease you will not face any commonality issue  8)

Except if it is in the middle of the night and you are sleeping.  I don't think AWS should be the type of game that would force you to live your depending on schedule of when your aircraft arrives...

andriitis

Or, for example, if you are on vacation and have better things to do than constantly monitoring the AWS used airplane market ;)

alexgv1

Or if it comes back and goes straight into an automatic D check  :(
CEO of South Where Airlines (SWA|WH)

schro

Quote from: alexgv1 on November 25, 2011, 12:05:26 PM
Or if it comes back and goes straight into an automatic D check  :(

This cost me about $200 million over the course of a D check once.

JumboShrimp

Quote from: schro on November 25, 2011, 08:15:41 PM
This cost me about $200 million over the course of a D check once.

Even though I don't think D check is as much of a problem as paying the fleet commonality fees (for aircraft not flown), it might be possible to add flag per aircraft on automatic C/D checks, similar to the flag for automatic lease renewal.

But not assessing crew training charges for aircraft not flown is IMO something that should definitely be implemented in AWS ASAP.

schro

Quote from: JumboShrimp on November 25, 2011, 08:24:40 PM
Even though I don't think D check is as much of a problem as paying the fleet commonality fees (for aircraft not flown), it might be possible to add flag per aircraft on automatic C/D checks, similar to the flag for automatic lease renewal.

But not assessing crew training charges for aircraft not flown is IMO something that should definitely be implemented in AWS ASAP.

Correct. The D check cost was nothing - maybe 10 million on an old L1011. I couldn't scrap it when it was in maintenance, couldn't put it back on the market, basically couldn't do anything but sit and watch 40M per week get vaccuumed off my bottom line for a plane that was barely worth 50M.