LUFC
Topic Author
Posts: 79
Joined: Fri Dec 22, 2000 8:00 pm

How Are Airbus And Boeing Still Trading?

Thu Apr 17, 2003 6:11 pm

It's beyond me. Jets are being parked up all over the world. Many many airlines are on the point of going bankrupt, yet the two biggest aircraft manufacturers are still delivering and taking orders.

There must be bargains to be had all over the place so why are airlines still buying new aircraft when they could probably get one to do the same job for half the price?
 
Andreas
Posts: 5880
Joined: Tue Oct 09, 2001 7:56 pm

RE: How Are Airbus And Boeing Still Trading?

Thu Apr 17, 2003 6:53 pm

several reasons:

1. parked jets are old technology, that are too expensive to be brought up on state-of-the-art.
2. dto. the cost to bring them into a "usable" state.
3. policy of carriers to use new equipment.
4. policy of carriers to streamline their fleet

Except for no.3, these are all economic reasons, that is, it could be cheaper to buy new aircraft instead of using old equipment, purchase is not all there is to calculate, and aren't we glad about that...I mean just the thought that A and B go belly-up...no more A vs. B wars, no new aircraft for the spotters, and for frequent flyers like myself...no new aircraft, just old clunkers, no thanx!
I know it's only VfB but I like it!
 
BeltwayBandit
Posts: 474
Joined: Tue Mar 11, 2003 4:25 am

RE: How Are Airbus And Boeing Still Trading?

Thu Apr 17, 2003 9:54 pm

Accounting rules (rightly or wrongly) create a strong incentive to operate new aircraft. With depreciation and the lack of maintenance, new aircraft make the financials look better.

Too bad because, many aircraft in the desert are NOT old (certainly not past their useful life). Moreover, you can pick up a clean aircraft for about one-third of its 2001 value.

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