Boeing727 From United States of America, joined May 1999, 964 posts, RR: 0 Posted (16 years 1 month 3 weeks 2 days 8 hours ago) and read 1298 times:
Can someone explain to me what exactly happened on the Air France cash in 1995 in India? Why was the aircraft not written off? I heard, it cost $150 million to fix the bird, might as well buy a new one for that price.
LH423 From Canada, joined Jul 1999, 6501 posts, RR: 53
Reply 1, posted (16 years 1 month 3 weeks 2 days 1 hour ago) and read 1194 times:
My guess as to why they didn't write it off is because a brand new 747-400 costs in the vicinity of $180 million. Not to mention that in order to buy a new 744 the wait for it would have (probably ) been longer than if they were to just fix it themselves.
« On ne voit bien qu'avec le cœur. L'essentiel est invisible pour les yeux » Antoine de Saint-Exupéry
24291 From , joined Dec 1969, posts, RR:
Reply 2, posted (16 years 1 month 3 weeks 1 day 5 hours ago) and read 1154 times:
A write-off isn't just found money, The insurance company has to choke up the cash. So, if you were the insurance company, would you prefer to pay $150 million for repairs, or would you rather give Air France a brand-new plane at a cost of $180 million? But you're right, it is almost as if two aircraft had to be paid for.
About the crash, isn't there somebody here who can tell us what happened?