Leelaw From , joined Dec 1969, posts, RR: Reply 2, posted (7 years 3 months 1 week 2 days 14 hours ago) and read 1553 times:
OK, China Airlines got a $154M loan with a term of 12 years to purchase a 744F. We don't know if this figure represents the entire purchase price of the aircraft because the article doesn't disclose what percentage of the purchase financing the loan represents.
Trex8 From United States of America, joined Nov 2002, 3970 posts, RR: 14 Reply 3, posted (7 years 3 months 1 week 2 days 14 hours ago) and read 1546 times:
true but we know very few airlines pay list price and one would expect Boeing to have given them substantial discounts given they ordered ,what was it, 23 744s in about 3 years and pretty much kept the production line going for a substantial part of the early 90s. CI financing packages also tend to be for pretty much the entire cost of the aircraft if their previous ExImBank contracts are anything to go by.
Trex8 From United States of America, joined Nov 2002, 3970 posts, RR: 14 Reply 5, posted (7 years 3 months 1 week 2 days 8 hours ago) and read 1319 times:
Quoting Echster (Reply 4): Doesn't the Ex-Im finance at approximately 85% of the net-net total on most occassions?
yes, my point is that CI tend to finance as much as they can if they finance from any institution, so its not likely they will pay half the cost and finance the rest. Besides which while they are consistently profitable, they don't make hundreds of millions $ profit like CX, SQ (probably because their insurance premiums are so high!!) so they have less cash for outright purchases.
Of course pre existence of BR, they could have , and did, go to the ROC CAA and get the Taiwan govt to buy the plane and they leased it at submarket rates! Thats how they got their first 744s and MD11s in the early 90s!
Leelaw From , joined Dec 1969, posts, RR: Reply 6, posted (7 years 3 months 1 week 1 day 15 hours ago) and read 1160 times:
Therefore, the worst case scenario for Boeing is that is that they gave CI a 34% discount on this aircraft, assuming the list price was as much as $228M, and 100% of the acquisition cost was financed by the loan ($154M). Is this somehow unusual or particularly newsworthy?