But agreements differ for a damp lease. For example, an airline might have a lot of free cabin crew available, as they just hired a lot of new recruits. But they lack the engineering personnel to cover the maintenance operations. So, a damp lease here is perfect — they loan the aircraft, the pilots that come with it, insurance and maintenance personnel, but they do not need the additional cabin crew, so their lease is cheaper.
So, now that we know the three lease types that fluctuate in aviation, we can answer the question: Why would an airline choose to lease an aircraft?
So, they split up the payments for an aircraft and still can operate it fully;. A gap in the market has opened up, for example after a rival airline has gone bankrupt. The airline needs an aircraft quickly — they could order a new one from Airbus or Boeing, but the waiting line is a couple of years. Instead, they lease an aircraft and receive it within a few months or even weeks, in the most extreme cases;. Unforeseen circumstances like an unusual amount of aircraft being maintained, fleet groundings or strikes can help the airline stay in control of their own operations with short-term leases.
Seasonal changes — for the summer they need more aircraft, while for the winter the same aircraft would sit idle. So, the airline uses a short-term lease to cover its seasonal operations. So, to sum up, why do airlines lease aircraft — not enough financial resources to buy aircraft, needing an aircraft quickly due to various circumstances and seasonal changes make airlines consider that they should lease an aircraft.
In short, yes, they are profitable. With aviation booming as it is and passenger numbers rising yearly, airlines do lease more and more aircraft. In total, leasing companies around the world own more than 12 various aircraft — from the Super Jumbo Airbus A to small jets like the Bombardier CRJ However, most leasing companies own a huge amount of narrow-body aircraft like the Boeing or the Airbus A They have the biggest profit margins for lessors, as when switching operating airlines, preparing a narrow body aircraft is much cheaper than say, a Boeing They buy in bulk.
If an airline orders one or two, they might pay the full price. If a leasing company comes to an aircraft manufacturer, they will make a bulk order. When making a bulk order, the company can negotiate a discount from the manufacturer. As a result, their profit margins will be much higher. A leasing company can decide for how long they will hold on of an aircraft. It varies, but after the life-cycle within the lessor, the aircraft is sold on.
As the aircraft are looked after properly, they do not depreciate a lot. Thus, the leasing company does not lose a lot of money after a re-sale. If a lessor cannot find a buyer, they can just scrap the aircraft for parts. There is always an aftermarket for spare parts. While it might not recover the same amount of money, the company still retains some of the value of an aircraft. Aircraft Rental. Rent vs. Own Comparison. Here are some things to consider: How often do you fly?
If you fly once or twice a month for pleasure only, ownership will probably not make good financial sense. How often would you like to fly? If you believe that the availability of an aircraft seven days per week, 24 hours a day might change how much flying you do, a purchase should at least be considered, but a word of caution is necessary: Many pilots fool themselves into thinking that owning an airplane will increase the number of hours they fly.
What kind of budget can you allocate to flying? Are you flying only when you have enough cash left over at the end of each month, or do you have a set amount regularly committed to flying? And while there are tons of companies that rent out their airplanes at pretty much every airport around the country, not all provide equal levels of customer satisfaction.
This is important because you want to feel safe throughout all aspects of the plane renting journey. The easiest way to understand the credibility of a given airplane rental company is to research reviews online — reputable companies are proud to display customer testimonials, are active on Google My Business, Yelp and other review platforms, and have an obvious social media presence where happy customers flock.
Other ways to determine reputation is to search for special certifications. For example, many top airplane manufacturers and industry organizations like AOPA the EAA form partnerships and provide awards to qualified companies. There are countless options available in terms of the type of plane you can rent — from small, single engine prop planes to large multi-passenger twin-engine jets and beyond.
However, the type of plane you want to rent will depend on the criteria of your trip. Active 4 years, 3 months ago.
Viewed 25k times. Improve this question. Add a comment. Active Oldest Votes. Improve this answer. Would you say that the minimum hours per day would usually be higher than 2 or not? To me it feels like if they had the opportunity to keep it local and have it out for more hours then they would do so.
It's a sacrifice to increase membership in the long run. So overnighting can get rather expensive especially as rental rates are including the fuel the engine would use while flying, so if you're on the ground for 40 hours after a 4 hour leg, then another 4 hour leg back you're charged among other things for 8 hours of fuel you never used, which at avgas rates isn't cheap.
Wow, that's by far the steepest I've ever heard of! That club must cater mostly to students. Show 4 more comments.
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