Airline Mogul Forum

Why are people allowed to return leases..

air1 · 17 · 3166
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air1

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on: March 05, 2008, 09:07:44 pm
Seriously, that is retarded

pseudoswede

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Reply #1 on: March 05, 2008, 09:12:55 pm
The developers are working on revamping the leasing system, which will include (amongst other things) a penalty for returning a plane before the lease has expired.
             
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travismb99

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Reply #2 on: March 05, 2008, 09:15:45 pm
Retarded? In the real world, airlines can return leased aircraft. There is a penalty applied in the contract, generally, but they can reject leases.

In the real world, also, leases are never "99999999" months. Precisely because no airline would ever commit itself to an indefinite aircraft lease like that.

AM's leasing mechanic is simplified. That's being improved, I think, for some point in the future.

A more realistic lease system would set up better game mechanics... i.e., cheaper lease rates for longer-term leases. And no more silly 99999999 month leases  :lol:
acific Southwest Airlines - W10 - Catch our smile - ICAO:PS/#8304

air1

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Reply #3 on: March 05, 2008, 09:19:09 pm
Quote from: "travismb99"
Retarded? In the real world, airlines can return leased aircraft.


I was referencing how the leasing is done here, not in the real world

Quote
A more realistic lease system would set up better game mechanics... i.e., cheaper lease rates for longer-term leases. And no more silly 99999999 month leases


No one is forcing someone to buy a 9999 month contract... let people live with the consequences of their actions

travismb99

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Reply #4 on: March 05, 2008, 09:21:50 pm
Quote from: "air1"
Quote from: "travismb99"
Retarded? In the real world, airlines can return leased aircraft.


I was referencing how the leasing is done here, not in the real world

No airline, in the real world or the AM world, is ever going to sign a lease contract that doesn't allow for aircraft to be returned early.

The contract would likely apply certain penalties and fees for exercising that option, but the option would be there nonetheless.
acific Southwest Airlines - W10 - Catch our smile - ICAO:PS/#8304

air1

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Reply #5 on: March 05, 2008, 09:23:26 pm
Quote from: "travismb99"

The contract would likely apply certain penalties and fees for exercising that option, but the option would be there nonetheless.


Did I ever say that isn't true?

travismb99

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Reply #6 on: March 05, 2008, 09:23:50 pm
Quote from: "air1"
No one is forcing someone to buy a 9999 month contract... let people live with the consequences of their actions

The only reason anyone takes up a 9999999 month lease today is because they can reject it at any time.

Were a realistic lease mechanic to be implemented, applying penalty fees for early lease rejection, market forces will quickly push toward shorter-term lease agreements.

Furthermore, as I said, there will be more interesting financial options for lease offerings; that is, lessors will be able to offer price-discriminatory leasing deals. Longer-term agreements (and hence locked-in cash flow) will tend to offer lower rates, while short-term agreements can be more expensive.
acific Southwest Airlines - W10 - Catch our smile - ICAO:PS/#8304

air1

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Reply #7 on: March 05, 2008, 09:27:05 pm
Quote from: "travismb99"
Quote from: "air1"
No one is forcing someone to buy a 9999 month contract... let people live with the consequences of their actions

The only reason anyone takes up a 9999999 month lease today is because they can reject it at any time.

Were a realistic lease mechanic to be implemented, applying penalty fees for early lease rejection, market forces will quickly push toward shorter-term lease agreements.

Furthermore, as I said, there will be more interesting financial options for lease offerings; that is, lower lease rates for longer-term agreements.


Umm ok thanks for supporting my point that this system is horrible

dktc

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Reply #8 on: March 05, 2008, 09:28:20 pm
As we are retarded (quoting you), we are incapable of improving it. Case closed.
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air1

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Reply #9 on: March 05, 2008, 09:29:59 pm
Quote from: "dktc"
As we are retarded (quoting you), we are incapable of improving it. Case closed.


I never said you were,  I said the leasing system is... but seeing that you lack reading comprehension abilities, I think you might be

MrOrange

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Reply #10 on: March 05, 2008, 09:30:19 pm
But once again, to really close the case, I cannot do anything but quote the second post in this topic, a post no-one here seems to have actually read :wink:

Quote from: "pseudoswede"
The developers are working on revamping the leasing system, which will include (amongst other things) a penalty for returning a plane before the lease has expired.

dktc

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Reply #11 on: March 05, 2008, 09:48:24 pm
Quote from: "air1"
Quote from: "dktc"
As we are retarded (quoting you), we are incapable of improving it. Case closed.


I never said you were,  I said the leasing system is... but seeing that you lack reading comprehension abilities, I think you might be


You implied by saying the system is :wink:
(and I am pulling your legs really as MrOrange has pointed out, but you could have used other words to describe the system)
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StephenM

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Reply #12 on: March 05, 2008, 09:52:11 pm
Its very easy to criticise something. If you can suggest even one improvement it would add hugely to the credibility of this topic.

Otherwise this is going to get locked.
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Steeler83

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Reply #13 on: March 06, 2008, 12:47:08 am
How is this for a penalty?  I actually returned an aircraft a month or so before the period was up, and I still had 1.5M deducted from my account each month for the two months left.
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dktc

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Reply #14 on: March 06, 2008, 12:51:39 am
Quote from: "Steeler83"
How is this for a penalty?  I actually returned an aircraft a month or so before the period was up, and I still had 1.5M deducted from my account each month for the two months left.



Why not just pay the rest of the lease? :twisted:
D Express (id 616) 8)
AM Membership Officer / Official Broker

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