8 replies to this topic

[cpizanov]

Hello every one,

 

I have an airline right now in S2 no leasing challenge, which consists of russian and american planes.

 

-all my tupolev 334 and tupolev 204/214 have a depreciation rate of 3.5% per year, even if they have 1 or 10 years old.

-all the Il-96 have a 10% depreciation

-all the 767-200ER have a 6% rate.

-the 767-300ER has a 5%

-Sukhoi SJ100-95 has a 10% rate.

 

I have no idea of the details of how does depreciation affects the finance in the game. Basically my questions are:

 

1.) how is the depreciation rate on different aircraft determined?

2.) why "old" tupolevs have lower rates than Boeings(that are supposed to have higher values), but not so for the russian last gen planes?

3.) is it better to have a higher depreciation rate for the planes?

4.) is there a way of knowing both depreciation rate and maintainance cost before buying??

 

Thanks.

 

 

[vsauce]

i think the depreciation is how much value the aircraft loses each year. It's better to have a low deprectiation, so you can sell it at a higher price

[TheGreatOP]

i think the depreciation is how much value the aircraft loses each year. It's better to have a low deprectiation, so you can sell it at a higher price

Also you have to pay a value equivalent to the value depreciated if you buy the aircraft (really don't know why)

[tchung]

Depreciation rate is the percentage of value that will go down. E.G. If you buy a 100 dollar plane and it has a 1% depreciation rate and you sell it 10 years later it will be worth 90 dollars. (I think)

You want a lower deprecation and fleet age to keep maintenance costs down! Depreciation will affect maintenance costs I think 

[TheGreatOP]

Depreciation rate is the percentage of value that will go down. E.G. If you buy a 100 dollar plane and it has a 1% depreciation rate and you sell it 10 years later it will be worth 90 dollars. (I think)

You want a lower deprecation and fleet age to keep maintenance costs down! Depreciation will affect maintenance costs I think 

From a mathematical aspect, it doesn't go down by $1 per year, but rather goes down like this: Value after n years = Value at start * (1 - depreciation rate)^n

So after 10 years it will be $90.44 rather than $90 in the example provided. This seems like a rather small difference, but increase the depreciation rate and/or n and it skyrockets.

[tchung]

true

[Monksey7]

How come you get charged for it as well as the aircraft losing value, surely on or the other makes more sense.

[dazwalsh]

Its more accounted for rather than charged.

[Monksey7]

Its more accounted for rather than charged.

ah!