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Q: Purchase vs lease? aircraft ( No Answer,   1 Comment )
Question  
Subject: Purchase vs lease? aircraft
Category: Business and Money > Finance
Asked by: chuckler-ga
List Price: $200.00
Posted: 06 Nov 2005 23:27 PST
Expires: 14 Nov 2005 20:10 PST
Question ID: 590007
I would like to create a financial model on excel for purchase vs

lease of an aircraft. There are 3 types of aircraft that I am looking

at it the

 

1. Bombardier challenger 604

2. Bombardier challenger 800
3. Gulfstream
 

The duration of the analysis should be 5 years with a discount rate of

7%. The number of flights that we are looking at is 2 to 4 per month.

Please include and show all the costs that are incurred such as the

pilot, crew, airport fees, fuel , parking etc. The aircraft should be
for 14 to 17 passengers.

Thanks
Answer  
There is no answer at this time.

Comments  
Subject: Re: Purchase vs lease? aircraft
From: frde-ga on 07 Nov 2005 04:23 PST
 
When it comes to small aircraft and whether it makes sense to lease or
buy, I am lot sure.

However I certainly know a bit about large aircraft, and if your
proposal hit the desk of an established airline it would (subject to
peculiar caveats) get thrown out immediately.

Two to four trips per month is absolutely nothing, a commercial
aircraft should normally be in the air for 18 hours per day.

One alternative would be to look into joining a consortium that would
buy/lease the aircraft, another is to simply find a company that
provides executive charters ( I think Warren Buffet owns (controls)
one such operation
  http://www.bizjournals.com/washington/stories/2002/09/09/daily17.html    ) 

- yet another would be to 'wet lease' an aircraft, that means it comes
with crew and maintenance, and sub-sell it when you don't need it.

Another possibility is to go for a larger aircraft and utilize the
(grossly surplus) capacity by providing an 'emergency relocation'
facility which kicks in when an established operator's aircraft goes
tech.

Regardless of buying or leasing (and a lot of larger operators lease),
with your requirements you should be able to fly for free
- and turn a profit on the operation.

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