View Full Version : Loan Items
Can anyone tell me for sure how much one airline has to pay another for a loan item. I've heard it's very expensive indeed.
sameep
17th Mar 2008, 14:54
One company i know of charged another one $500 for one hour of GPU use... It was a one time thing though.. The other company aircraft had only one GPU which broke down.. so they had no choice since they were out of base...
Sometimes...nothing.
Landed at KMEM for technical reasons a few years ago, and had to park at the GA ramp (Signature).
The line guy was asleep at 2am, but was awake quicktime with an L1011 entering their ramp.
No charge for use of the GPU, and FedEx supplied a huffer 30 minutes later and we were good to go.
FedEx didn't wan't payment either altho we had the cash available.
Nice folks.
Nopax,thanx
17th Mar 2008, 15:39
There used to be an agreed IATA loan rate of (IIRC) 1.5% of the component list price per day for the first 30 days. Add this to the initial loan fee of 2½% plus recertification by an approved shop when the unit is returned to the owner and you can see why some operators hate loans. If you have an agreement with another airline then often the mutual debts are wiped out at the end of each year.
In a previous life I dealt with Cyprus Airways who had been tied into a loan arrangement with Dan-Air. The air would be blue when an item loan would be billed at the cost (or more) to buy a second-hand overhauled part off the shelf from a BAC1-11 parts dealer!
tristar 500
17th Mar 2008, 15:47
I all depends what the part is & wether it`s a "POOL PART"
Most airlines are in what is known as a pool for AOG (aircraft on ground) items The general rate is/was 10% of the value of the part. If for instance you borrowed a valve for your aircraft and you didn`t manage for what ever reason to return it to the lender within 7 days, then you would buy it!! The big thing with pool parts is that if you are the suppling airline, such as BA at LHR, and another airline wanted a bit that you didn`t have in stock then you would have to take one off of your aircraft to satisfy the demand!!
If the part was not a pool part then in all probility you would not borrow it as, you are quite correct in saying, it can be very expensive with a down payment plus a hire fee. Again the best way is to purchase it outright.
Tristar500