trex8
Posts: 4576
Joined: Sat Nov 02, 2002 9:04 am

Cost Of A New 744F?

Sat Feb 11, 2006 10:52 pm

 
PhilSquares
Posts: 3371
Joined: Sun Mar 28, 2004 6:06 pm

RE: Cost Of A New 744F?

Sat Feb 11, 2006 11:03 pm

The list price of a 744F is between 202 million and 228 million. All the link mentions is financing. It really doesn't indicate if the financing was for the entire purchase price or not.
Fly fast, live slow
 
leelaw
Posts: 4520
Joined: Sat May 29, 2004 4:13 pm

RE: Cost Of A New 744F?

Sat Feb 11, 2006 11:08 pm

OK, China Airlines got a $154M loan with a term of 12 years to purchase a 744F. We don't know if this figure represents the entire purchase price of the aircraft because the article doesn't disclose what percentage of the purchase financing the loan represents.
Lex Ancilla Justitiae
 
trex8
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Joined: Sat Nov 02, 2002 9:04 am

RE: Cost Of A New 744F?

Sat Feb 11, 2006 11:13 pm

true but we know very few airlines pay list price and one would expect Boeing to have given them substantial discounts given they ordered ,what was it, 23 744s in about 3 years and pretty much kept the production line going for a substantial part of the early 90s. CI financing packages also tend to be for pretty much the entire cost of the aircraft if their previous ExImBank contracts are anything to go by.
 
echster
Posts: 393
Joined: Thu Sep 02, 2004 4:01 pm

RE: Cost Of A New 744F?

Sun Feb 12, 2006 3:26 am

Doesn't the Ex-Im finance at approximately 85% of the net-net total on most occassions?
 
trex8
Posts: 4576
Joined: Sat Nov 02, 2002 9:04 am

RE: Cost Of A New 744F?

Sun Feb 12, 2006 5:05 am

Quoting Echster (Reply 4):
Doesn't the Ex-Im finance at approximately 85% of the net-net total on most occassions?

yes, my point is that CI tend to finance as much as they can if they finance from any institution, so its not likely they will pay half the cost and finance the rest. Besides which while they are consistently profitable, they don't make hundreds of millions $ profit like CX, SQ (probably because their insurance premiums are so high!!) so they have less cash for outright purchases.
Of course pre existence of BR, they could have , and did, go to the ROC CAA and get the Taiwan govt to buy the plane and they leased it at submarket rates! Thats how they got their first 744s and MD11s in the early 90s!
 
leelaw
Posts: 4520
Joined: Sat May 29, 2004 4:13 pm

RE: Cost Of A New 744F?

Sun Feb 12, 2006 10:16 pm

Therefore, the worst case scenario for Boeing is that is that they gave CI a 34% discount on this aircraft, assuming the list price was as much as $228M, and 100% of the acquisition cost was financed by the loan ($154M). Is this somehow unusual or particularly newsworthy?
Lex Ancilla Justitiae

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