It really depends on your perspective.
If you are looking at buying aircrafts to lease out as an investment, you should always look at acquisition costs and period of return (IRR actually irl, but this is AM...).
Some people (like Matias) also takes lease terms into consideration. This is quite realistic, but would not work in AM. The reason being that AM does not have any early return penalty. It really does not guarantee that the lesee would not return within 6 months, even if the terms were 120 months.
I usually look at recouping the investment within 10-12 months.
Looking at the revenue is another way. That is exactly how your potential lessees would evaluate a lease. The issue with this method is that revenue on the same plane varies according to the hub/focus city it flies from, and the distance of routes it flies. You will end up with a range, rather than a rate.
And of course, in the above example, you would not be leaving any profit for the lessee, and thus there will be little incentive for anyone to lease your aircraft. If you use this method, you need to make sure your base (benchmark) is set appropriately. That means your base should have similar number of pax as with the majority of airports the other players in your word base / hub in. Then, you need to decide how large a share of profit you want to allow the lessee to keep.
And fyi, in AM, leasing planes out will always yield a lower return than flying them (assuming you do them in large scale).
737-500 usually goes at about 3 to 4 mil per month... back when I ran huge brokerage business. (So yes, it doesn't make sense to lease in/out larger planes.)
« Last Edit: July 15, 2013, 02:33:52 pm by dktc »
D Express (id 616)
AM Membership Officer / Official Broker
