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Leasing Rates Outweigh Operating Costs?  
User currently offlineFLY777UAL From United States of America, joined May 1999, 4512 posts, RR: 2
Posted (13 years 3 months 3 weeks 4 days 17 hours ago) and read 2708 times:

I've been thinking about this for a while...

Assuming that the 737-800, MD-83, and A320 all hold roughly the same capacity and have the ability to fly (generally) the same types of routes, would it behoove an airline to choose the older jet, the MD-83 over its newer rivals?

Say the MD-83 has an operating cost of $4,000 per hour, and both the 737 and A320 have an operating cost of $3,000 per hour. Would the leasing rates on the 737 and A320 be high enough (or, looking at it another way, would the MD-83 be that much cheaper) to balance out the overall cost to be equal, or perhaps the MD-83 end up being cheaper?


F L Y 7 7 7 U A L

1 replies: All unread, jump to last
User currently offlineSrbmod From , joined Dec 1969, posts, RR:
Reply 1, posted (13 years 3 months 3 weeks 4 days 16 hours ago) and read 2689 times:

Some other things would be considered as well. Maintenance costs may be more for an older a/c, but the lease rate (and the down payment) would be less than for a newer a/c. Older a/c are more prone to MX issues than newer a/c, so dispatch reliability could be an issue as well. What really boils down to is how much can an airline afford to spend to lease an a/c or how much are they willing to spend?

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