Lease costs
Join Date: Jun 2002
Location: Wor Yerm
Age: 68
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Allegedly, leasing costs are 1% of hull value per month (ish). So, depending on the length of the lease, hull value, coriolis value 55 north, say $30,000 per month. However, leasors want to know for sure that you are good for that so, you generally also pledge a testicle or two as a deposit! And once you have got the thing, then you realise that have just become an invoicing address. Good luck!
The Aquatone Article
Join Date: May 2004
Location: London
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Piltdown Man, you're right of course about the old 1% criterion, but I'd check that duff "0" key on the calculator...$300k rather than $30k is nearer the mark for NG aircraft.
As ferrydude says, you'll pay $250k plus for a B737-700, and you'll pay $300k++ for an -800. Similarly A320, rates $300-350k for new/nearly new equipment.
But because of excess of demand over supply, little matters like the strength of the guarantor become all-important. Even if you business plan showed you could justify paying $300k and you had the money, chances are the aircraft would be pledged to a higher-quality credit risk unless you've been trading for a long time.
B737-300s are different, inasmuch as some are ancient. Still not $30k/month, however - remember that the 1% rule breaks down as values drop below about $6-10 mill. I'd guess in today's market you'll start around $100k and go on from there. But again, the surplus of two years ago has largely gone.
As ferrydude says, you'll pay $250k plus for a B737-700, and you'll pay $300k++ for an -800. Similarly A320, rates $300-350k for new/nearly new equipment.
But because of excess of demand over supply, little matters like the strength of the guarantor become all-important. Even if you business plan showed you could justify paying $300k and you had the money, chances are the aircraft would be pledged to a higher-quality credit risk unless you've been trading for a long time.
B737-300s are different, inasmuch as some are ancient. Still not $30k/month, however - remember that the 1% rule breaks down as values drop below about $6-10 mill. I'd guess in today's market you'll start around $100k and go on from there. But again, the surplus of two years ago has largely gone.
