PPRuNe Forums - View Single Post - DJ Turboprops announced in Skywest tie up
Old 27th Feb 2011, 13:13
  #265 (permalink)  
neville_nobody
 
Join Date: Jul 2003
Location: Somewhere
Posts: 3,071
Received 138 Likes on 63 Posts
I don't quite understand this? Why not lease direct from the leasing company Avation? Wouldn't it be cheaper to do so, than go through a third party?
Because that is how Skywest's owners makes money. They have a company that owns all the aircraft and leases them out at a higher than market rate. That way they make all their profits out of leasing aircraft and as a result Skywest don't make alot of money. So come EBA time the company cries poor claiming that 'times are tough' for Skywest. Meanwhile the owners are cleaning up on the lease of the aircraft.

Smart way of operating really.
neville_nobody is offline