Airline Mogul Forum

Minimum lease price

TheKevinShow

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on: October 25, 2011, 09:48:17 pm
IIRC there is a set limit of how much a plane can be sold for. You can't go above or below a certain percentage of the plane's value. That same logic should be applied to leasing as well. I'm trying to lease some new 737s for a reasonable market price (several million euros for a ten-year term) and I'm being undercut by someone who's leasing those same 737s for less than a million euros each. That's ridiculous and incredibly unrealistic. There should be a limit to how low you can set your lease price at.


Med Air

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Reply #1 on: October 25, 2011, 11:23:55 pm
You are right, prices are unrealistic... unrealistically high.

I can't comment on the 737 but I know brand new A319s currently lease on the market for around $400,000 a month (older models, around $200,000).


Hal

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Reply #2 on: October 26, 2011, 06:29:29 am
400k for A319 is too low, since mx cost for some older A319 will be 1,5 - 2,1 with leasing price 400k its giving 900k - 1,7m loss.

There is limit 5 % from the a/c price as minimal leasing price, but i think it should be at least 10 %.

From broker view is 10 % minimal since broker has not routes to feed with thems his funds.
Central Europe Brokerage, official broker, ID15523.


StephenM

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Reply #3 on: October 26, 2011, 08:18:22 am
As Hal said the game does have limits in it, but they are too low/high. I think the upper limit is 33% of value or something. Lease rates should in-game reflect the DOC you can get from the aircraft, but the problem is people lease out aircraft at rates that will never make money but people still lease them in anyway.
Stephen Murphy
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