Lutfi From China, joined Sep 2000, 788 posts, RR: 0 Posted (13 years 3 months 2 days 10 hours ago) and read 1557 times:
From THAI website (press releases)
8. Purchase of Boeing 747-400 from Leasing Company
THAI’s Board has approved the purchase of the second Boeing aircraft 747-400 from aircraft leasing company Emerald Wing Company Limited once the current agreement has expired on 22 March 2002, since the airline still has need for aircraft utilization. The aircraft has been used for 12 years and has an operating life of 20 years. Purchasing the aircraft from the aircraft leasing company will enable THAI to buy the airplane for less than the bid price, at approximately USD 21.15 million dollars.
N949WP From Hong Kong, joined Feb 2000, 1437 posts, RR: 1
Reply 1, posted (13 years 3 months 2 days 10 hours ago) and read 1527 times:
Like the article said, Thai has been leasing that particular aircraft for the past 12 years. If you consider all the money that have already been paid to the leasing company over the last 12 years, Thai may not exactly be picking up a bargain.
Lutfi From China, joined Sep 2000, 788 posts, RR: 0
Reply 2, posted (13 years 3 months 2 days 9 hours ago) and read 1506 times:
Think of it this way, if they bought it new 12 years ago for 120m USD, and depreciated it over 20 years, it would be now at 48m USD in their balance sheet.
More likely, the leasing company realised that once the aircraft came off lease, it was going to the desert, so accepted TG offer as being better than nothing. I agree, for the leasing company it may not be a bad deal (they got 12 years of rental, and now get 22m USD, would need to know how much they bought it for and how much the rental was to know if they are ahead or not)
It shows that airlines like UA, which looks to have an OK balance sheet, may not. Because the value of all the aircraft they own is almost certainly not what they think it is.