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Buying A Jetliner  
User currently offlineHighFlyer9790 From United States of America, joined Jul 2005, 1236 posts, RR: 0
Posted (7 years 10 months 2 weeks 5 days 14 hours ago) and read 1041 times:

Hello!
I've been a diehard A.net viewer for many years and just never got around to signing up...so I'm not exactly a "newbie!" lol

Anyway I was wondering, if someone wants to start an airline by buying, for example, a 738 valued at $65 million. With cars, people normally pay them off in 5 years, and a house 30 years. How about an airplane?

Thanks!
 wave 


Professional people mover. A to B. CL-65 Type; CFI/CFII/MEI/AGI/IGI
3 replies: All unread, jump to last
 
User currently offlineEMBQA From United States of America, joined Oct 2003, 9286 posts, RR: 13
Reply 1, posted (7 years 10 months 2 weeks 5 days 12 hours ago) and read 926 times:

Most aircraft are leased, which is an ongoing payment schedule. To buy one cash, most are paid in full up front or through the issuing of Bonds to raise the capitol.


"It's not the size of the dog in the fight, but the size of the fight in the dog"
User currently offlineWhiteHatter From , joined Dec 1969, posts, RR:
Reply 2, posted (7 years 10 months 2 weeks 5 days 12 hours ago) and read 902 times:

Banks also form lending syndicates to finance aircraft deals, often with one bank being the lead banker.

In Britain, Bankers Trust finance quite a lot of deals. I believe they also operate in the USA under the same name. These deals can either be long capital equipment leases or hire-purchase type arrangements. Citibank do a lot of aircraft financing as well.

Arnold Schwarzenegger was once involved in a deal arranged by his bankers to finance the purchase of a 744 for SQ. Those sorts of deals are not generally discussed much in retail banking circles as they are private banking activities for people and companies with money to invest.

User currently offlineHighFlyer9790 From United States of America, joined Jul 2005, 1236 posts, RR: 0
Reply 3, posted (7 years 10 months 2 weeks 5 days 11 hours ago) and read 804 times:

thanks..kind of hard info to come by  Smile


Professional people mover. A to B. CL-65 Type; CFI/CFII/MEI/AGI/IGI
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