Question About Leases

[tushardhoot1]

Hey,

I have a question about leases. It may seem pretty basic, but it has me confused.

When I took out a lease on my plane, the cost for 80,000 for a period of 999 months (~800 days). Now the problem is that when I go to my finance screen, it says I have to pay 80,000 for my lease monthly (30-40 game days). I don't understand the logic in that.

Thanks!

[Scandalian Airlines]

Think you misunderstood, the 999 months is the lease time, meaning you agree to lease the plane for 999 months. The 999 is often used for unspecified lease times so you can return it after say 6 months if that is agreed with the person who leased you the plane.
80.000 is what you have to pay every month for the use of the plane. A month in AM is 24 game days=24 hours IRL.
And if you give it a thought, why would anyone let you use a 1.6 million plane for 999 months, and only charge yo 80.000 total for that period? That would be a really bad business model.

[pepdav]

.  you can return it after say 6 months if that is agreed with the person who leased you the plane.

I've never communicated with any of the folks who've leased me planes. I lease it for say $2,500,000 a month for 999 months with the intent of keeping it,however, if it no longer serves my purpose, I'll just send it back and replace it with something else more efficient. Ideally, you want to buy all your planes but if you can't, lease them and slowly get to where you want to be then slowly purchase your planes and then send the leased ones back. Also keep checking the lease list for cheaper rates of the planes you have already leased. I'm relatively new but I've seen a wide spectrum of rates for the same plane.

PS- If what I do regarding the way I lease is considered bad form then please advise me however I believe this is common in RL too

[DAK]

You are spot on, lease the cheapest one available and give it back when it no longer serves your purpose. On any given day I get 10-20 returned from lessees and I put them right back on the market.

Try not to lease them too close to month end as you will have to pay for it again once the month ends.

One more thing to keep in mind as a lessee you don't have to pay the maintenance charge.

[john123]

Just a quick question...

I recently leased out an airplane for roughly 150K a month for 120 game months. I then expanded and decided to return the aircraft. Am i stuck making the lease payments until the lease expires or will I stop having to make the payments. Also, if I do have to make the payments, is there a way in which I could get the plane back?

Thanks,

John

[Chavaquiah]

Once you return it, you stop paying.

Just a reminder, though, the lease is payed monthly, in advance, at the start of the month. Even if you return a plane on the 1st, the full month will have been payed. So it's a good idea to return planes close to or on the 24th.

[LOT 737-300]

Another good idea is to calculate all the figures involved with that plane to see if you can make enough to pay off the lease. Many airlines who are oh so eager to fly 737-200s make the mistake of leasing out like 20 at once and then putting them on every route their heart desires without thinking out the fact that they won't be able to make the lease payments. I've seen an airline basically have to cut their operations in half in the game because of this (though it did clear up a route he sorta messed up with a 2x 732 (it was to a city with less than 500K pax).)

So to make that payment and remain profitable, make sure you:

1see how much per day you should be making per day with the bird before you lease it.
2Factor in the gate rent.
3Last off, factor in maintinance and crew costs.

And if you're wondering, you can go into negatives while operating leased aircraft, but it will be either your choice or the Bankrupcy script's (when that gets run) decision to return the planes or not.