MD-80 vs A-320
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Joined: Feb 2008
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From: on a beach
MD-80 vs A-320
Hi guys,
Do you think that it makes sense tu sell an MD-80 for less than $5 millions that is paid for and buy a brand new A-320 that costs more than $50 millions to
save around 30% on fuel costs? I don't think so. I never understood it.
Well, that's just my opinion.
And we could say the same about a B-737-300 and an A-320.
Do you think that it makes sense tu sell an MD-80 for less than $5 millions that is paid for and buy a brand new A-320 that costs more than $50 millions to
save around 30% on fuel costs? I don't think so. I never understood it.
Well, that's just my opinion.
And we could say the same about a B-737-300 and an A-320.
Joined: Aug 2005
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From: fairly close to the colonial capitol
After labor at number one, fuel is the second largest expense for an airline.
Other economic reasons for trading up: The cycle count on the MD80 frame, what point in the maintenance schedule it is (possibly nearing a D check) and where the operators books are on the aircraft's depreciation. Minor consideration - the old gal may also be assessed higher landing fees due to her noisy JT8D's and limited to slots during the day where noise restrictions are tight.
edit: of course $50 million bucks American can buy a considerable amount of kerosene.
Other economic reasons for trading up: The cycle count on the MD80 frame, what point in the maintenance schedule it is (possibly nearing a D check) and where the operators books are on the aircraft's depreciation. Minor consideration - the old gal may also be assessed higher landing fees due to her noisy JT8D's and limited to slots during the day where noise restrictions are tight.
edit: of course $50 million bucks American can buy a considerable amount of kerosene.
Last edited by vapilot2004; 2nd June 2010 at 05:53.
Joined: Mar 2001
Posts: 4,563
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From: I wouldn't know.
And many if not most do not buy a new airframe, they use quite a few financial products to keep the upfront cost low. Usually required is between 10 and 20% upfront cost, the rest over the time of the projected lifetime within the company.
