x1 747 or x2 DC-8's

iranair777 · **Reply #30 on:** January 21, 2008, 02:57:31 pm

As I said in another post, the lease that you took out with that 742 was extremely high and would not have given anyone a decent profit to cover the cost of the lease let alone profit. what you have to do is to buy one instead of leasing one (unless the lease price goes down to about 15million). I'm about to hopefully recieve my brought 742 from mrorange and and going to put it on a very long route and then buy another and put it on shorter routes and see which is best.
what the formula to calculate the profit that your making from a leased plane is:

(p x 24)-(g+L)
p= Plane profit (view and buy aircraft page)
g= Gate cost(s) if your flying two routes into a airport where you have rented 1 gate, divide the gate value by two and insert it as g
L= Lease cost of aircraft

I can easily get about 2-4 million on a leased 732adv (@2million) & 732adv biz jet (@500k-900k)

although now looking at a route (e.g. THR-SFO) I can see that the 747-200 uses double the fuel comsumption that a 707-320B or a IL-62 does and now thinking about it I might go which one of those two after I buy two 742's

pseudoswede · **Reply #31 on:** January 21, 2008, 03:09:32 pm

Quote from: "Expairience"

So anyway, who has their 742s operating with a profit?

Minimum lease for a 747-200 is around 19M. In order to recover the leasing costs, you'll have to make around 800k per day, which I highly doubt anyone comes close to. Best case scenario: someone is probably making around 600k with a 747-200.

At 600k, it will still take 27 months to recover the purchase cost.

Expairience · **Reply #32 on:** January 21, 2008, 03:19:29 pm

In my opinion the problem is the high amount of seats. Even flying a 0.5x is like flying a 2x frequency on a 731. So you are killing yourself, even if you are ALONE on the route. As calculated above, there is no way anybody can operate a leased 742 with profit.

Air2000 · **Reply #33 on:** January 21, 2008, 03:20:15 pm

Quote from: "Expairience"

Out of curiosity, I have leased a 742 earlier today. I have 4 South American bases at CCS, BOG, UIO and LIM. No matter how hard I tried, I can't squeeze more than 400K DOP out of the 742, even if I put it on 2 different routes to Europe with no competition and 0.5 frequency each. I can't ask for a higher ticket price than about 450Eu on those routes, It feels like I myself oversaturate the market with that half flight alone. 400K covers little more than a third of the lease rate, so I'll have to return the plane on the last day of this month. It was an experiment, and it was fun to have a 747 in my fleet of 731s and 722s for a short while, but there is no way I can make this bird fly profitably.
Ok my hubs might not be the best, so maybe the 747 is only good for airlines based at killer hubs (but wouldn't they have more competition too?)
And this is at a point where intercontinental routes are still open for grabs. Don't want to know what it's like later when the good routes are all taken.
So anyway, who has their 742s operating with a profit?

i make more on the flying x2 .5 routes accross the atantic on routes from EU-US.

it probly would be good on like Atlanta-Hathrow? two mega sized airports..... but once one sheep does it... every other in the flock will soon follow.

in this simulation becuase of the inabilty to add different classes the 747 is unreasonable. also, 747 has a lot of cargo space where extra rev can be earned, and its high yealed business and first class/premium economy class ticketing revs.

DAK · **Reply #34 on:** January 21, 2008, 04:49:17 pm

I had 5 742's and sold them all, am making more profit on a 990 then I did on a 742, for 1/3 of the acquisition cost. The biggest problem with the 742 on any route with competition is that it drives the price down rapidly and you are forced to match prices with TU's and 73BBJ's, planes with far lower costbase. Even on high density routes LHR-ORD and LHR-ATL my 990's do better then the 742

waerth · **Reply #35 on:** January 21, 2008, 07:56:37 pm

Yes in some cases prices drop to fast and in some to slow. Unfortunately this is very difficult for the programmers to do.

Waerth

kazoom · **Reply #36 on:** January 21, 2008, 08:00:36 pm

My 747-200 is coming in about 3 minutes

We'll see how good it is.

kazoom · **Reply #37 on:** January 21, 2008, 08:09:40 pm

mmmmmm.....

indeed im not too happy at the moment

742

SIN-FRA

FRA-KBL

one hr to spare, and $307,000

Seattle · **Reply #38 on:** January 21, 2008, 08:13:53 pm

What did you expect

I would just use it becuase its big and has prestige

MvH · **Reply #39 on:** January 21, 2008, 08:15:34 pm

Quote from: "Seattle"

What did you expect

I would just use it becuase its big and has prestige

And loose money on it? No way I'm gonna use the 747. :wink:

kazoom · **Reply #40 on:** January 21, 2008, 08:17:54 pm

Quote from: "Seattle"

What did you expect

I would just use it becuase its big and has prestige

Yeah, honestly, its also prestige.

But i don't think I'm gonna buy any more.

waerth · **Reply #41 on:** January 21, 2008, 08:20:11 pm

If you buy it you do not loose money on it! It will just take longer to get your money back .... but that is also true in real life!

Waerth

Seattle · **Reply #42 on:** January 21, 2008, 08:24:06 pm

Quote from: "waerth"

If you buy it you do not loose money on it! It will just take longer to get your money back .... but that is also true in real life!

Waerth

so, it makes money.

In real life, it earns money. Thats probably why over a thousand have been mede.

iranair777 · **Reply #43 on:** January 21, 2008, 08:27:37 pm

but we have to remember that other planes in ones fleet can contribute to paying back that amount. Im at 350million euros at the moment and have been saving up for a 742 (just like a little boy

) and im waiting for delivery (if Mrorange decides if he wants to hurry up a tad bit)

Seattle · **Reply #44 on:** January 21, 2008, 08:31:01 pm