Is My Airline In Trouble?

LIBERTYAIRLINESCEO · **on:** April 26, 2008, 05:08:59 pm

All but one of the aircraft in my fleet are on lease. Will this send my airline to cease ops? Or is it okay to do this?

iranair777 · **Reply #1 on:** April 26, 2008, 05:24:38 pm

depends on how much you are leasing a aircraft out for. if your leasing it for a higher than normal price, you will be. also depends on the returns the planes get.

herrgoda · **Reply #2 on:** April 26, 2008, 05:54:03 pm

I started with a large number of leases and then went to replace them with owned planes. It's a good opportunity to expand your network (and increase your DOP) if you are a startup.
Calculate your monthly profit per leased plane and compare that to the leasing rates you are paying. Your profits should be a lot higher. And if they are not: Go find better routes for them or return them.

Wizzie · **Reply #3 on:** April 27, 2008, 02:40:38 am

I had a situation like that but I read the signs correctly and now that I have returned most of them (Just waiting on a supplier to send me the rest

) and I can run jet-powered aircraft Like the Bombadier Challenger 6000 and the Boeing 737-200. Leasing is a very good place to start

seafly4fun · **Reply #4 on:** April 27, 2008, 12:48:01 pm

Leasing is a good way to start but I don't think that it is a good thing to do for the whole game. Often times the price of the lease is mad crazy and there is no way you'll make enough on the routes to cover the cost. There are many players that take advantage of newbies and do this and while I think it's wrong common sense should tell someone that there is no way they'll make up the difference in profit.

LIBERTYAIRLINESCEO · **Reply #5 on:** April 27, 2008, 06:50:07 pm

I am going to end my expansion and save up for a Boeing 737-200. I am ready to buy a new aircraft, but I have to get the funds first. I am in the red, but I always make up for the money I spent. My airline is making money 99% of the time.

iranair777 · **Reply #6 on:** April 27, 2008, 08:47:25 pm

buying a 732 when your in financial trouble isn't the best option at all

Steeler83 · **Reply #7 on:** April 27, 2008, 08:54:21 pm

I'd go with smaller aircraft first. Start out small, build up DOP doing as such. BELIEVE ME! That's the way to go in this game! ;-)

You'll be amazed at what those "little" aircraft can do for you within such a short period of time.

iranair777 · **Reply #8 on:** April 27, 2008, 09:14:46 pm

Quote from: "Steeler83"

I'd go with smaller aircraft first. Start out small, build up DOP doing as such. BELIEVE ME! That's the way to go in this game! ;-)

You'll be amazed at what those "little" aircraft can do for you within such a short period of time.

Adding onto that, I have a Beech B99 between really close regional airports and I'm making in excess of about 500k on more than one of them

LIBERTYAIRLINESCEO · **Reply #9 on:** April 29, 2008, 12:25:18 am

I went ahead and leased one more aircraft...the HS-748 Srs. 2A for my JFK-DAB route. It is making more money than I was using the other plane. I also made the money back within the day (real time). The route is very profitable.

boilermaker · **Reply #10 on:** April 29, 2008, 06:22:43 am

As the game progresses, there will be more smaller aircraft available at better lease rates as more players upgrade. The HS-748 series is a great plane to expand with. I check out whats on sale or lease several times a day. I'm usually not in the market to buy or lease right now, but sometimes I'll find a deal and jump on it (like the Super 10Bs on lease for 500k/mo).

yourefired · **Reply #11 on:** April 29, 2008, 06:29:58 am

I haven't leased a single plane this entire round, and my god the maintenance costs are killing me. I paid out 130 million this month, about twice the cost of everything else combined. I also have an all-jet fleet and in the process of upgrading. I added about 15 planes to my fleet this month, I'm sure the maintenance is going to finish me off next month :?

But at the moment, leases cost more than the average cost of maintenance per plane for my entire fleet (about 2.6 million/plane and leases cost at least 3.5), so I think I'll just keep owning. Thankfully my profit margins are climbing to 60-65%.

Virgin Serbia · **Reply #12 on:** April 29, 2008, 06:51:37 am

Quote from: "LIBERTYAIRLINESCEO"

I went ahead and leased one more aircraft...the HS-748 Srs. 2A for my JFK-DAB route. It is making more money than I was using the other plane. I also made the money back within the day (real time). The route is very profitable.

I think you would make more money by just flying one frequency to tree destinations, instead of three to DAB, and it could replace another aircraft you have leased (a smaller one)

sam051 · **Reply #13 on:** April 29, 2008, 06:52:08 am

In world 3 i started small and didn't lease any aircraft.

Later (now) my airline value is over 1,300,000,000 and i am an operator of over 20 BAC 111-500 and 5 BAC 111-475 and one Douglas DC-8-68. My airline by the way is definetely not as big as other double digit billion dollar valued airlines, but im happy with it.

Start out small and go to airports that are reasonable in price, its easier to get more routes thus more money.

myavia · **Reply #14 on:** April 29, 2008, 11:34:56 am

lease for start, then when u get enough money to buy a decent one, buy.. and phase out ur leased machines in stages..

and dont lease those big, fuel-sucking planes.. go for small ones with lower turn-time, so u can make $$$ faster to finance ur own planes..

i started with leased F27-600s which are good for a start..then upgrade to HS-748 and SE210.. all these are leased, of course do hunt for low lease..

for example, i leased a Shorts 360-100 for just 85K pm while my profit for that plane is around 100K per day.. u do the maths
my F27-600s was leased at 500K pm, while the market rate is around 1M pm..

now in process of phasing out my leased planes with own planes..

just my 2cents