Airline Mogul Forum

Airline Mogul => Game Strategy => Topic started by: HOUSE_D on June 02, 2009, 05:40:18 pm

Title: lease or buy?
Post by: HOUSE_D on June 02, 2009, 05:40:18 pm
to get my second plane (whenever I do) should I lease or buy?  What is the advantages/disadvantages of each.
Title: Re: lease or buy?
Post by: dktc on June 02, 2009, 06:17:53 pm
Lease
- much quicker to get the plane
- if you make a overall profit (ie. your DOC * 24 > your gates, salary, fuel for that plane), the plane pays for itself
- high fixed costs = high operation leverage = high risk = potentially high return

Buy
- you need the cash to purchase, or at the very least 50% of the plane for downpayment of a request, and the remaining at time of delivery
- your fixed costs would be much lower since you do not need to pay the lease
- you don't need as high a DOC to be profitable

Now, profit and return on investment are two totally different concepts. Lease maximize ROI while purchase maximize profit. It is your decision which one you choose.
Title: Re: lease or buy?
Post by: HOUSE_D on June 03, 2009, 05:49:55 am
ok so I got another gate and now my plane cannot fly anymore routes.  I don't have enough cash at this point to buy a plane.  I might be able to lease. i have doc of 65.5k and there is a couple planes for 800k.  one is a 3 month lease one is a 120 month lease. 
Name     BAe Jetstream J61 is the 120 month lease
the other is a
Name     ATR 42-500 for a 3 month lease.

Should I ride out my slots for now and build up some dough and buy a plane or lease one of these?
 
Title: Re: lease or buy?
Post by: Cheung Airlines on June 03, 2009, 07:57:10 am
it really depends on how much the offer was.

Generally, props under 1m/month and jets under 4m is fine [250k bases]
Title: Re: lease or buy?
Post by: HOUSE_D on June 03, 2009, 04:55:38 pm
its really driving me nuts I can't open up anymore routes.  I can't wait to get another plane.