Minimum lease time introducing

[Johan87]

I am getting carzy of airliners leasing new airplanes just for 1 or 2 years,while i want them to lease out for a longer period.
Isn't it time as we can set a max lease time,that we can also set a minimum lease time so that both parties are happy?

Or am i not seeing something?

Have a good weekend all

[Tha_Ape]

I agree that min lease duration would be useful in case you want to lease out a plane for a while. But it's more comfort than necessity.

On the other hand, what you are complaining about is that people offer too short leases for your needs.
So putting a min lease duration wouldn't solve your problem at all, as people would still lease them out with min duration set at min, and max duration set at 1 or 2 years.

Or you want to force people to lease out for at least 3 or more years? That would be just a dictatorship.
And, by the way, I saw you lease out dozens of DC-8-63 for 1-2 years.

[Zobelle]

Might be fun to set min lease times to encompass D check. Of course they can terminate lease for a hefty penalty, too. 

[gazzz0x2z]

The most common case is still lessee Bankrupting. No law will prevent the bird from returning, then.

And, honestly, once you're in the brokering game, it means you already enjoy a certain level of success. Little bad surprises like that are not shocking to me. Brokering is a bet, and some bets are losing bets(like my purchase of A300 - argh).

[Johan87]

Off course it is a bet when you want to lease/sell planes,as you never know who has intrest.
Risk of Bankrubtcy cannot be avoided,so this way by minimum lease time can prevent a temporary customer be taking up the plane before a long term client would be online but not have the chance for take it up.

If there can be a max date set then a minimum should be normal too,atleast in my opinion.
a well,....let's enjoy the game 

[JumboShrimp]

Might be fun to set min lease times to encompass D check. Of course they can terminate lease for a hefty penalty, too. 

If the system has the minimum lease time, and lessor makes it to encompass the D check, lessee can still terminate the lease prematurely, prior to D check. (or just park the aircraft).

[Zobelle]

If the system has the minimum lease time, and lessor makes it to encompass the D check, lessee can still terminate the lease prematurely, prior to D check. (or just park the aircraft).

They sure can. At a hefty penalty that will surely cover said D check. We can't lose!

[Tha_Ape]

On the contrary. As Shrimp said, sent into a hanger, the lessee won't do the D-check.

[gazzz0x2z]

more generally, you're the owner, you're the big bad boy, you don't whine when airplanes come back one day before D-Check. (I'm outleasing 113 birds in current GW2, so I am a big bad boys - as well as a few other poster in this thread). We don't need to be even more harsh against smaller companies, who already have tough time surviving.

[knobbygb]

It'd be nice but not essential. It's frustrating when you want to lease out a good quality aircraft for the long term to have to re-do it after a year - more work, but... You actually can make more money that way. Don't forget that longer leases are for a much lower rate (around -20% for a 7 year lease versus 1 year and I don't think the lease increases with inflation so it is even more in real terms).  And...  often a less experienced player will take the short lease (for flexibility I suppose) and then keep renewing it every year, meaning the rate DOES increase quite a bit. Also, if those "less financially secure" airlines who take the short leases go BK, you actually get the penalty paid on a/c return (50% of remaining lease?). As for D-checks - I'm fine with that - return it to me 1 day before the D-check - it's what I expect and what I do to others.

[Johan87]

Let say you have now 10 Dc-10'10 for lease.
They are very valueable now,but within a few years the Dc-10'30/40's come and everyone focus on them.
So if some had leased 2 or 3 years in beginning,then intrest of the public drop and you can ask a much lower price.
Here the 7 year lease with 20% of long lease term will benefit more.

there are plenty different way of leasing an A/C,so why can't an lessor not do the same?

[Johan87]

I agree that min lease duration would be useful in case you want to lease out a plane for a while. But it's more comfort than necessity.

On the other hand, what you are complaining about is that people offer too short leases for your needs.
So putting a min lease duration wouldn't solve your problem at all, as people would still lease them out with min duration set at min, and max duration set at 1 or 2 years.

Or you want to force people to lease out for at least 3 or more years? That would be just a dictatorship.
And, by the way, I saw you lease out dozens of DC-8-63 for 1-2 years.

yes,sometimes i lease out planes for 1 or 2 years,because if they stay parked or just available they cost,if they are leased out they make some revenue.
So this is not dictatorship,just making choice for plane owners more flexible too,like the max choice.
Always variabilities stay in the game,like Bankruptcy and other events.
It is not a serious matter,but just make it more flexible,tough it never guarantee it works out that way

[Tha_Ape]

@Seven

I completely agree, and that's for the exact same reason that I usually lease some planes for 1 or 2 years, like I just did with my 732 Adv.
And that's probably for the exact same reason that some others do this as well.
So indeed what you complain about is actually what we all do for very good reasons. The lessee is unhappy when stumbling into this, but what can be done? The minimum lease duration wouldn't have any effect in that case, as the purpose is precisely to lease for a short time.

In other situations, though, it could be useful. But as knobbygb said, I don't feel it's really essential.