Airline Mogul Forum

Leasing out: how to make profit out of it

OO-SCZ

  • Airline Operative
  • *
    • Posts: 56
    • View Profile
on: March 25, 2012, 07:17:37 pm
Hello fellow AM's!

As I have plenty of cash availble for purchasing new aircraft, but not planning on opening more new routes, I was wondering wheter or not it is profitable to lease aircraft.

What philosophy do you use?
Any suggestions, strategies on your behalf?

Kind regards
What is chiefly needed is skill rather than machinery.
- Wilbur Wright, letter to Octave Chanute, 13 May 1900.


AytchMan

  • Airline Operative
  • *
    • Posts: 86
    • View Profile
Reply #1 on: March 25, 2012, 09:05:08 pm
Leasing is a tricky endeavor.  The badly-flawed revenue model generates so much cash that established airlines will never need to lease.  As you can see in your own case, they can always afford to buy all the aircraft they need.  So, your only real market is the new entries.  These guys often find it cost-efficient to lease in aircraft as they get up to speed.  Again, this is because the revenue engine will generate far more income than the cost of a reasonable lease.  Thus, you could make some profit if you can anticipate exactly the type of aircraft the startups need.  But, for me, leasing out aircraft is far more trouble than it's worth and I've found that it rarely justifies the effort.
Pan-Galactic Universal -- Setting the Standard for Utter Futility


pseudoswede

  • Airline Manager
  • ***
    • Posts: 1278
  • Play to win, not imitate.
    • View Profile
Reply #2 on: March 30, 2012, 11:34:02 pm
But, for me, leasing out aircraft is far more trouble than it's worth and I've found that it rarely justifies the effort.

Back when public worlds had 2000-2500 players, you could make substantial supplemental incoming leasing out aircraft. Now, it's much more difficult and not worth it, IMO.
             
Planet Express Airways
Member of the FT Alliance
ID: 3446

Opinions expressed in my posts are suggestions to achieve maximum airline value and top rankings.
If you do not wish for either, then feel free to ignore.


 

SMF spam blocked by CleanTalk