Leasing fees

[TheKevinShow]

I had a 737-400 at 6.4M per month. I returned it for a 737-400 at 5M per month. It was an obvious choice, though it'll be moot since I'll be taking delivery of a brand new -400 tomorrow. My question is in regards to the fees. The finance screen shows 11.4M for the month. Does that mean I'll be paying that at the end of the month, or is it like gate fees where it just waits until the end of the month to recalculate and show the correct amount?

[CHR]

It works the same as gate fees - in that you pay leasing money at the beginning of the month, however if you lease out a plane during the middle of the month, you have to pay the fee upfront. In effect, you will pay the leasing fee twice in the month you change over. It is quite right when it says you total leasing costs for the month are 11.4 million. Of course, next month it will only show that you have 5 million in leasing costs, when the other plane is gone.

The only way to avoid this would be to return the old plane on the 24th of a month and lease out the new one on the 1st of the next month. You would need to be up at the month change over to do that though...

[TheKevinShow]

No, what I mean is will I pay the 11.4M at the end of the month or will it just be the 5M?

[CHR]

You pay leasing costs at the beginning of the month, not the end. The amount you see on the Finances page is the total amount you have paid so far this month, which includes both what you have paid at the beginning in regular leasing fees and the amount you paid during the middle of the month when you took out the new lease. When the next month comes, you will only pay 5 million Euros.

[TheKevinShow]

Beginning, end, same difference.