HighFlyer9790 From United States of America, joined Jul 2005, 1241 posts, RR: 0 Posted (10 years 7 months 1 week 2 days 11 hours ago) and read 1617 times:
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?
WhiteHatter From , joined Dec 1969, posts, RR:
Reply 2, posted (10 years 7 months 1 week 2 days 9 hours ago) and read 1478 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.