highflyer9790
Posts: 1189
Joined: Thu Jul 07, 2005 1:21 am

Buying A Jetliner

Thu Jul 07, 2005 2:32 am

Hello!
I've been a diehard A.net viewer for many years and just never got around to signing up...so I'm not exactly a "newbie!" lol

Anyway I was wondering, if someone wants to start an airline by buying, for example, a 738 valued at $65 million. With cars, people normally pay them off in 5 years, and a house 30 years. How about an airplane?

Thanks!
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EMBQA
Posts: 7795
Joined: Sat Oct 25, 2003 3:52 am

RE: Buying A Jetliner

Thu Jul 07, 2005 4:28 am

Most aircraft are leased, which is an ongoing payment schedule. To buy one cash, most are paid in full up front or through the issuing of Bonds to raise the capitol.
"It's not the size of the dog in the fight, but the size of the fight in the dog"
 
whitehatter
Posts: 5180
Joined: Sat Jun 12, 2004 6:52 am

RE: Buying A Jetliner

Thu Jul 07, 2005 4:35 am

Banks also form lending syndicates to finance aircraft deals, often with one bank being the lead banker.

In Britain, Bankers Trust finance quite a lot of deals. I believe they also operate in the USA under the same name. These deals can either be long capital equipment leases or hire-purchase type arrangements. Citibank do a lot of aircraft financing as well.

Arnold Schwarzenegger was once involved in a deal arranged by his bankers to finance the purchase of a 744 for SQ. Those sorts of deals are not generally discussed much in retail banking circles as they are private banking activities for people and companies with money to invest.
Lead me not into temptation, I can find my own way there...
 
highflyer9790
Posts: 1189
Joined: Thu Jul 07, 2005 1:21 am

RE: Buying A Jetliner

Thu Jul 07, 2005 5:22 am

thanks..kind of hard info to come by  Smile
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