lease or buy?

[HOUSE_D]

to get my second plane (whenever I do) should I lease or buy?  What is the advantages/disadvantages of each.

[dktc]

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.

[HOUSE_D]

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?
 

[Cheung Airlines]

it really depends on how much the offer was.

Generally, props under 1m/month and jets under 4m is fine [250k bases]

[HOUSE_D]

its really driving me nuts I can't open up anymore routes.  I can't wait to get another plane.