Hi all,
I'm new to this game and was wondering if anyone could help me understand the advantages/disadvantages of buying/leasing new/used aircraft.
Used aircraft seem a much better deal on the surface of it as they are far cheaper but presumably there is some benefit in operating new aircraft over 10 year old ones.
Thanks.
New or used
Started by Burt Stormberger, Jul 25 2011 01:54 PM
#1
Posted 25 July 2011 - 01:54 PM
#2
Posted 25 July 2011 - 03:34 PM
Old aircraft are terribly expensive due to increased maintenance costs and increased fuel consumption. However if the aircraft is only a few years old go for it if it is on the used market. that way you get it straight away and a little cheaper.
#3
Posted 25 July 2011 - 03:57 PM
Thanks Conor,
So would a 10 year old 767-200 be more expensive to run than a brand new 767-200 or are you referring to older models compared with newer ones?
If so, is there any way of seeing how much more expensive?
Thanks.
So would a 10 year old 767-200 be more expensive to run than a brand new 767-200 or are you referring to older models compared with newer ones?
If so, is there any way of seeing how much more expensive?
Thanks.
#4
Posted 25 July 2011 - 04:42 PM
Yes the 10 year old one would be considerably more expensive to run.
Click the aircraft ID, that should tell you its fuel flow and maintenance cost
Click the aircraft ID, that should tell you its fuel flow and maintenance cost
#5
Posted 02 December 2011 - 09:20 PM
I understand the fuel flow, but could you please explain how I get an idea of the maintenance costs upfront before I purchase an aircraft?
#6
Posted 03 December 2011 - 01:37 AM
The older an aircraft is, the greater the maintenance cost. I suggest avoiding anything over 8 years old, but you should still be able to survive with older aircraft. I would recommend a lease of a newer aircraft. The payments won't kill you, and you will keep most of your cash. Watch the maintenance costs, and then buy from lessor.
#7
Posted 03 December 2011 - 03:37 AM
I understand the fuel flow, but could you please explain how I get an idea of the maintenance costs upfront before I purchase an aircraft?
It's a rather simple formula (actually two) to derive. You should be able to figure it out with your existing aircraft. It applies towards all aircraft.
That said, I've yet to figure out the fuel flow penalty for older aircraft.
#8
Posted 23 December 2011 - 10:01 AM
its not that bad at all, the lower lease costs should make up for higher maintenance costs, stay away from anything over 15 years old though..
#9
Posted 23 December 2011 - 08:22 PM
I think that used aircraft are great for quick expansion, while new aircraft have a longer life span, and are good for slow expansion.
#10
Posted 04 January 2012 - 09:52 AM
I am fairly new to the game too, so have joined a few games to see how best to 'start off'. It took me a long time to work it out, but it seems to me that the quickest expansion is with leased aircraft. Providing you get a decent model and fly it on decent routes, you can easily cover the costs of leasing. Initially I start with a few aircraft around 10 to 12 years old. Then when they start to make money (like overnight the first night!) I move up to leasing 4 or 5 year old aircraft. After the next 2 or 3 days, when I log on I have a lot more cash, so I buy one of the old leased aircraft, sell it and lease a newer one - that is the way for me to upgrade the fleet. Then, I start to buy a few aircraft, either new or 2 year olds - that seems the best way to get value into your company and climb the rankings.
#11
Posted 06 January 2012 - 02:16 AM
I find that a good way to make additional money off these old aircraft is to sell them when the market for them dries up. If you hold them until none of the type are on sale, the market value increases to what they were worth new.
#12
Posted 06 February 2012 - 12:32 AM
Used, especially when starting out. I just checked a pair of my 747-200C's, both earn the same, one is 7 years old and the other 17 yeas old, both purchased used with a 10 year lease. The difference in total operating cost is $500,000 per month (7.346 mil vs 7.846 mil). The lease costs per month, New - $1.8 million, 6 year - $809k and the 16 year - $329k. For the same lease payment you could have 5 or 6 16 year old 747's vs 1 brand new one.
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