jfkYYZ
Posts: 108
Joined: Sun May 02, 2004 10:25 am

How Much Did SG's MDs Cost?

Sun Dec 26, 2004 7:25 am

Hey, I was just thinking, JetsGo started in 2002 with, I believe 3 MD-83's. Now, does anyone have any idea what the market prices is for them? Like how much did it cost Michel Leblanc for the aircraft. Any ideas?
j. in YYZ
 
57AZ
Posts: 2371
Joined: Tue Nov 02, 2004 2:55 pm

RE: How Much Did SG's MDs Cost?

Sun Dec 26, 2004 8:38 am

Given the present state of the aircraft market, probably less than $20 million apiece and maybe as low as $10 million. This is a buyer's market and the aircraft prices will be driven even lower once the next airline to go bust (probably US Airways) dumps its aircraft on the market. Right now you can get a good, airworthy DC-10 for anything between $500,000 and $10 million.
"When a man runs on railroads over half of his lifetime he is fit for nothing else-and at times he don't know that."
 
captaingomes
Posts: 6251
Joined: Tue Feb 13, 2001 1:33 am

RE: How Much Did SG's MDs Cost?

Sun Dec 26, 2004 11:02 am

probably less than $20 million apiece and maybe as low as $10 million

You obviously don't know much about Michel Leblanc!  Big grin For that price, he can build his entire fleet I'll bet!  Smile Remember also, AA was probably happy to get anything at all for the aircraft and not have to face storage costs for all these airplanes, so you can be sure he got them for a steal.
"it's kind of like an Airbus, it's an engineering marvel, but there's no sense of passion" -- J. Clarkson re: Coxster
 
slawko
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RE: How Much Did SG's MDs Cost?

Sun Dec 26, 2004 11:30 am

Given that only two of these airplanes actually came from AA and were already parked I dont see your reasoning Nuno....besides they are all leased...
"Clive Beddoe says he favours competition, but his actions do not support that idea." Robert Milton - CEO Air Canada
 
acvitale
Posts: 1911
Joined: Sat Aug 18, 2001 8:25 am

RE: How Much Did SG's MDs Cost?

Sun Dec 26, 2004 11:41 am

I would suspect around 5 million to purchase and approx 50K a month on a long term lease with a stiff maint reserve.
 
MEA-707
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RE: How Much Did SG's MDs Cost?

Sun Dec 26, 2004 12:24 pm

The MD-80s were mostly ex Air Liberté and ex Korean Air, and about $ 5 mln a piece. Probably SG didn't even pay that but got finance via banks or trusts for that. The F-100s were as low as $1-2 mln a piece, but prices went up since the Fokker appeared to be more popular, US Airways and American actually expected their fleets would end up for scrap but airlines like Helvetic, Germania and Austrian are now also fighting for them.
nobody has ever died from hard work, but why take the risk?
 
captaingomes
Posts: 6251
Joined: Tue Feb 13, 2001 1:33 am

RE: How Much Did SG's MDs Cost?

Sun Dec 26, 2004 12:32 pm

Given that only two of these airplanes actually came from AA and were already parked I dont see your reasoning Nuno....besides they are all leased...

I'm talking about the whole fleet, and as far as I know, a few of the MD's and all of the Fokkers came from AA. Surely AA is the largest supplier of aircraft to Jetsgo.

By the way, is AA getting rid of any 757's in the near future?
"it's kind of like an Airbus, it's an engineering marvel, but there's no sense of passion" -- J. Clarkson re: Coxster