5 replies to this topic

[R!cK]

Which is more profitable? Buying or Leasing aircraft?

[Hake.]

For short term, I feel leasing is cheaper. However, if you are ordering new and/or have lots of money, it usually makes sense to buy. For example, a BAC Concorde is much more profitable to buy. There are some exceptions I found: The B747-8 makes 1M more a month when leased.

[Airplanepilot501]

If you have enough money to buy the aircraft, buying is more profitable because you don't have to pay Monthly Lease.

[Mobeer]

If you have little cash, then leasing several planes is more profitable than owning a few. A new airline should always be leasing because it ties up less funds per plane.

 

If you have lots of cash then buying aircraft with low depreciation and leasing aircraft with high depreciation (and later buying them) seems best.

[R!cK]

Thank you everyone for your replies. I have enough funds to buy my entire fleet but however not really sure how depreciation works.

Fleet Information

Aircraft Type            | Fleet Size| On Order| Avg Age| Daily Util

 

Airbus A330-200              10                15            0.38           7.61

Airbus A330-300               7                  21           2.54           0.00

Airbus A340-300               6                                 3.71           0.00

Airbus A340-600                                   21    

Boeing 747-100               44                               16.84          14.14

Boeing 747-200B             37                               17.26          19.14

Boeing 747-200C            18                                16.29          19.11

Boeing 747-300               71                                14.40          16.13

Boeing 747-400                2                                   7.63          19.14

Boeing 747SP                 14                                 16.56          19.47

Boeing 767-200ER        106                  32          10.47          14.01

Boeing 767-300ER          16                  30          11.61          12.24

Boeing 767-400ER                                50    

Boeing 777-200              20                   21            4.51            0.48

Boeing 777-200ER          4                    21            1.73            0.00

Boeing 777-300              13                  42             0.69          13.25

Lockheed L-1011-1         2                                   18.92         19.57

Lockheed L-1011-200    20                                  17.70         19.66 

 

As you may notice some of my fleet are old aircraft while i do have a good number of new aircraft in the fleet. However i am not sure if i should buy them all or just lease the new/old aircraft. Funding is not the issue, just not certain about depreciation.

[Hake.]

Depreciation is the % that a plane's value decreases annually.