2 replies to this topic

[mehmetkemal]

I have in my fleet 2 B737-300. The monthly aircraft maintenance fee for these two old babies really bother me, since I upgraded my fleet to 737 next generation. When I want to terminate the contract, the amount I should pay is around 7 $ million. But, if I don't pay my loan to the lessor 3 months, the aircraft will be seized. My question, when the lessor seizes the aircraft, will it only be charged those 3 months that were overdue, or something similar to termination fee? If not, isn't it better simply to leave the airplanes be seized?

[ReadyToFly]

I'm not sure about the seizure cost, I would just let the lease run down and expire, depending on how many years you have left on the lease. If you're desperate on getting rid of the aircraft as soon as possible, I would terminate and pay the money. But if you're low on cash, I would just run the lease until it expires and then have the aircraft returned.

[RJM]

If you have the cash on hand, buy the aircraft and sell it to market. Cost to buy should be less than sale of aircraft too.