leasing suggestion
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- joefremont
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leasing suggestion
I think the deductible in the leases is a good step in the right direction, I had a few ideas I would like to propose on how to make leasing a little more flexible.
When the aircraft owner puts an aircraft up for lease the would enter the following information.
Initial payment:
- The amount the client would pay for the first week of the lease.
Weekly payment:
- The amount the client would pay for the second and later weeks of the lease, if the lease ends in the middle of the week the last week would be prorated.
Period:
- The length of the lease in days (same as now).
Home base:
- The airport the aircraft must be returned to when the lease expires, or blank if it does not need to be returned to a specific airport.
Minimum status:
- At the end of lease, the aircraft must be repaired at the clients cost if the repair status is below this level.
Deposit:
- Paid upfront by the client, costs to repair aircraft at the end of the lease or return to home base would be deducted from this before the remainder is returned to the client. The client would still be required to pay costs in excess of the deposit.
A couple other suggestions.
The client should be able to end a lease early after 8 days (no refund of payments).
There should be some limit to how much owners should be able to charge for open leases, to prevent new users from being taken advantage of, maybe 1% of the aircraft's value per day. This would still allow owners to make a 365% return of the course of a year. Private leases would not be restricted.
When the aircraft owner puts an aircraft up for lease the would enter the following information.
Initial payment:
- The amount the client would pay for the first week of the lease.
Weekly payment:
- The amount the client would pay for the second and later weeks of the lease, if the lease ends in the middle of the week the last week would be prorated.
Period:
- The length of the lease in days (same as now).
Home base:
- The airport the aircraft must be returned to when the lease expires, or blank if it does not need to be returned to a specific airport.
Minimum status:
- At the end of lease, the aircraft must be repaired at the clients cost if the repair status is below this level.
Deposit:
- Paid upfront by the client, costs to repair aircraft at the end of the lease or return to home base would be deducted from this before the remainder is returned to the client. The client would still be required to pay costs in excess of the deposit.
A couple other suggestions.
The client should be able to end a lease early after 8 days (no refund of payments).
There should be some limit to how much owners should be able to charge for open leases, to prevent new users from being taken advantage of, maybe 1% of the aircraft's value per day. This would still allow owners to make a 365% return of the course of a year. Private leases would not be restricted.
I've sworn an oath of solitude until the pestilence is purged from the lands.
- flightsimer
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Re: leasing suggestion
as soon as u lease the aircraft it should be able to be cancelled. ive tried along with others to get that added. they never answered about it. it really needs to be added though...joefremont wrote:
The client should be able to end a lease early after 8 days (no refund of payments).
Owner/CEO
North Eastern Airways
North Eastern Airways
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- joefremont
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- flightsimer
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- joefremont
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Yes I agree, this has been discussed before. http://flynet.turksim.org/forum/viewtopic.php?t=2523vaccaro wrote:Hi,
Istead of opening a new topic I'd like to ask if it is possible to implement a feature to avoid changing the leased a/c registration.
Cheers,
I've sworn an oath of solitude until the pestilence is purged from the lands.
- joefremont
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Done.joefremont wrote:Yes I agree, this has been discussed before. http://flynet.turksim.org/forum/viewtopic.php?t=2523vaccaro wrote:Hi,
Istead of opening a new topic I'd like to ask if it is possible to implement a feature to avoid changing the leased a/c registration.
Cheers,
I've sworn an oath of solitude until the pestilence is purged from the lands.
- flightsimer
- Chief Pilot
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- Joined: Tue Oct 09, 2007 3:35 am
Having read a few of these threads on leasing, I get the impression that the majority of people who post on this forum are leasors, not leasees.
I am a one-man band, who has no interest in acquiring large fleets of aircraft to lease, I have what planes I need and lease ones to cover the times my own are in service.
From a leasees point of view, leasing is becoming a waste of time. With the huge deposits and requirement to have the plane A-checked before return, its easier to just buy a 2nd a/c to cover the wait for the one being services or fly something else in the meantime.
An example, I needed my 747 A-checked, so wanted to lease one for One Day to cover the wait. I found one on the list but it had a $22m deposit, and needed to be 100% on return ... Since I would only have flown this 2-3 times at best in 24hrs, the probability is that it would have been at 99.8%-99.9% after that. I doubt anyone would normally put a 747 in for an A-check at this level ... especially at a cost of around $6.5m
So the one day lease, which looked promising at $1m for the day, actually was $7.5m with a $22m deposit ... not such a good deal.... I ended up flying one of my other a/c while the jumbo was being serviced.
I fully understand you guys wanting to protect your investment, but lets not go too overboard or you will kill off your own market.
............... just a leasees point of view
Shodan
I am a one-man band, who has no interest in acquiring large fleets of aircraft to lease, I have what planes I need and lease ones to cover the times my own are in service.
From a leasees point of view, leasing is becoming a waste of time. With the huge deposits and requirement to have the plane A-checked before return, its easier to just buy a 2nd a/c to cover the wait for the one being services or fly something else in the meantime.
An example, I needed my 747 A-checked, so wanted to lease one for One Day to cover the wait. I found one on the list but it had a $22m deposit, and needed to be 100% on return ... Since I would only have flown this 2-3 times at best in 24hrs, the probability is that it would have been at 99.8%-99.9% after that. I doubt anyone would normally put a 747 in for an A-check at this level ... especially at a cost of around $6.5m
So the one day lease, which looked promising at $1m for the day, actually was $7.5m with a $22m deposit ... not such a good deal.... I ended up flying one of my other a/c while the jumbo was being serviced.
I fully understand you guys wanting to protect your investment, but lets not go too overboard or you will kill off your own market.
............... just a leasees point of view
Shodan
Shodan, I can understand your point but, all those requirements are the fruits of previous experiences.
I once had to pay more than I have earned because some airline returned my a/c in 95% condition.
I am quite sure other leasers too have their personal experiences about this problem.
I personally don't mind if leasee returns my a/c to the airport where (s)he has taken. All I want is to get my a/c back in the conditions that I have given to them, thus 100%, and a simple "do not change the registration" limitation.
IMHO, you can also negotiate directly with the owner of the a/c for a special price and conditions.
Air Mermaid for example from time to time leases a/c without deposit but a 100% of state condition.
Cheers,
I once had to pay more than I have earned because some airline returned my a/c in 95% condition.
I am quite sure other leasers too have their personal experiences about this problem.
I personally don't mind if leasee returns my a/c to the airport where (s)he has taken. All I want is to get my a/c back in the conditions that I have given to them, thus 100%, and a simple "do not change the registration" limitation.
IMHO, you can also negotiate directly with the owner of the a/c for a special price and conditions.
Air Mermaid for example from time to time leases a/c without deposit but a 100% of state condition.
Cheers,
Thank you for replying Vaccaro.
To continue playing 'Devil's Advocate' let me say..
We all live in a world where the 'politically correct' get us to comply with rules that are seemingly 'over the top', to cater for the few who are easily offended.
Here, we are making rules to compensate for the idiots who TRY to make it hard on the leasors. I have read the threads here and wonder .... just how many times do you have to nosedive a plane, to get it down to 45% (as I read in one thread) .. and then wonder ........ if that was by accident?
I am new here ... I have already made more mistakes than I am willing to admit (finding this forum has helped me correct a lot of them ... thank you all) .... all I am trying to point out is ..... spare a thought for the honest new guys .. who are still learning about FlyNet .. and will shy away from leasing at draconian prices.
... ok ... I have passengers waiting to go to KATL gotta go ...
Shodan
To continue playing 'Devil's Advocate' let me say..
We all live in a world where the 'politically correct' get us to comply with rules that are seemingly 'over the top', to cater for the few who are easily offended.
Here, we are making rules to compensate for the idiots who TRY to make it hard on the leasors. I have read the threads here and wonder .... just how many times do you have to nosedive a plane, to get it down to 45% (as I read in one thread) .. and then wonder ........ if that was by accident?
I am new here ... I have already made more mistakes than I am willing to admit (finding this forum has helped me correct a lot of them ... thank you all) .... all I am trying to point out is ..... spare a thought for the honest new guys .. who are still learning about FlyNet .. and will shy away from leasing at draconian prices.
... ok ... I have passengers waiting to go to KATL gotta go ...
Shodan