Originally Posted by
oldchina
SQ is very smart at negotiating purchase agreements with manufacturers whereby the latter agrees to facilitate disposal/take back on special terms against a future acquisition.
Airlines may be smart but lessors are no dumb. Doric will never do what it did with EK A380 again, never. EK may have to finance their pending deliveries.
Not unique for A380, with Delta's announcement that it purchased a used B777 for $10 Million, lessors are scrambling what to do with all B777 lease returns and what should be the lease rate factor for new ones. Delta probably bought just a frame without engines for parts, but such news worries Wall Street.
Traditional way of financing and maintaining planes will be history very soon. Gone are the days frames are good for 30 years and once initial problems are sorted out in a year, they are rock solid. Big players take brand new and hand them down to others after 12 years.
With Export Credit agencies and fuel efficiency third world no longer buying used planes. They can get brand new planes cheaper.
Build quality(not safety) of new types is poor. Too many prolonged teething issues (ie., troubled childhood) and early aging, faster technology obsolescence, less resale potential and less resale values.
I am thinking airlines will go power-by-hour on engines and pay-by-fly-hour for frames.
Let manufacturers and lessors deal with technical issues without hurting airlines bottom line.
If engine has an issue and need to be fixed, airline won't pay frame charges either, let engine manufacturer pay to frame owner/lessor.