End New Aircraft Touting

Started by Viscount Bailey, October 11, 2018, 07:07:29 PM

Tha_Ape

Quote from: tungstennedge on November 06, 2018, 05:53:23 AM
Maybe this is just because I have not experienced large plane queues in the past, but I don't particularly think brokering is even unfair at all for other players as long as they can still obtain the planes they want, even if they cannot get them new. I would personally be fine with paying a 10% premium on aircraft if it meant not waiting years to get them. Also I see in AWS production ramps up very quickly to very high rates, so I would think that there would be very healthy supply on the used market, and also as the model get older they will probably even start to be selling for much less than the new cost. The last airline I ran out of Japan used almost all 733 and 734  all bought for nearly 20% off the new price as 737NG line came out and large airline with large orders of planes were getting there last of the classics.

Basically I think brokering is fair way to make money as long as player can still but the planes they need.

You got it mainly wrong. Pro or against, the facts are the facts, and what usually happens (the most extreme examples are the 737 and A320) is far from the 10% premium and easy availability you mention.
This GW#2, I bought some 733 early on with max discount, 14m book price iirc. But once they were in production:
1°) they were really, really rare on the UM for years (from 1983 until 1990, roughly)
2°) the std UM price was around 55-60 m for a frame that, as said above, was probably bought for 15-20 m, while factory price was around 40 or 42 m.

So yes, brokering is a nice way to increase your supply if and only if you have deals for bulk orders. If you rely on the UM, you're basically doomed, at least until the 90s for that example.

Then, no, even older frames (~ 9-10 years in 92 or 93) still sold very, very well, and for just a little less, around 45 or so.