6 replies to this topic

[GuyGaranzo]

Greetings to all, I am quite new to the game and I'd like to ask about charges that airlines incur when aircrafts are idle. My DOP is currently $956,190 and I have 6 Tu-204-100 aircrafts on order, which are due to arrive the next day at about 10PM-1AM. However, I have school and am unable to stay up so late. As such, I have deferred my orders to match to 9PM on each day, is this worth it or should I have let the aircrafts incur some losses? How much are the costs for idle aircrafts per day?

[pseudoswede]

Deferring aircraft to when you know you will be in front of the computer is the best way to keep unnecessary costs low. As soon as you receive aircraft, you immediately start paying maintenance costs and leasing costs.

[GuyGaranzo]

Oh, thanks! Anyway, I would also like to ask about why sometimes my airline suddenly experiences a huge loss in cash, even though my DOP is constant and no other charges or systems were implemented? I'm currently waiting for about 10 aircrafts to arrive though.

[pabloc]

hi GG

 

your loss of cash if it's towards the month change-over i.e. comparing the 24th and the 1st of next month, it's probably due to maintenance costs + income tax

if it's during any day of the month it's probably because of leasing costs:

3526    DC-9-50    Dec 4, 1980    10 years    Dec 4, 1990    $300,150    Jul 4, 1981

(jul 4 in this case is the day the lease is charged)

 

another possibility is that if you are buying aircraft, as you are informed during the purchase, you pay 1/2 of the total of the order as a deposit when ordering, and then you must pay 1/2 of the cost of each aircraft when delivered:

 

Lockheed L-1011-200 leased May 6, 1981
Boeing 737-200Adv $22,164,500 May 9, 1981
Boeing 727-200 leased May 10, 1981
Douglas DC-9-50 leased May 11, 1981
Boeing 747-200C leased May 11, 1981
Douglas DC-10-40 leased May 17, 1981
Boeing 737-300 leased May 19, 1981
Boeing 737-200Adv $22,164,500 May 23, 1981

 

that's my pending delivery list, as you can see I don't need to pay anything for the leased aircraft, but on the other hand I have to pay 50% of the value of each aircraft purchased when they get delivered

 

I don't know if this would be of help for you.

 

Regarding maintenance costs... are they pro-rated if an aircraft is delivered for instance in the middle of the month, or do you pay the whole month regardless?

For instance this aircraft:

5485    737-200Adv    (2) Pratt & Whitney JT8D    0 years    $137,100

it has been delivered April 18, and it's April 21, yet in the Aircraft Maint. section it shows like the rest of aircraft with full monthly price.

What I don't know is if this get factored automatically into the lump sum of Maint. Expenses in the Income Statement, and this aircraft maintenance cost list is "information only".

 

Thx

[ar157]

this also happens on the 16th (or is it the 15th?) when you staff are given their pay.

[pabloc]

I didn't notice staff were paid in the middle of the month, thx for pointing it out

[GuyGaranzo]

Thanks a lot guys!