DTWPurserBoy
Topic Author
Posts: 2324
Joined: Fri Feb 19, 2010 10:33 pm

How Airlines Purchase Their Aircraft?

Fri Jul 05, 2013 11:43 am

I have always been curious about the purchase process. After the Board of Directors approves a purchase, how much of a deposit is required to get the slots. Are there step payments with the big final payment on delivery? What is the cost of holding options?

I recall in a book written by my personal airline author favorite Robert Serling that NW captains that flew out to Boeing to take delivery of the 727's actually carried the check for the payment.
Qualified on Concorde/B707/B720/B727/B737/B747/B757/B767/B777/DC-8/DC-9/DC-10/A319/A320/A330/MD-88-90
 
chieft
Posts: 325
Joined: Thu Jun 16, 2005 11:35 pm

RE: How Airlines Purchase Their Aircraft?

Fri Jul 05, 2013 11:49 am

I recommend the following book, which gives you some answers:

http://www.amazon.de/Buying-Big-Jets-Planning-Airlines/dp/0754670910



The rest is subject to negotiations.

There are payments along with the order, pre delivery payments in several steps and so on. The final payment must be done prior to delivery. Without it, the aircraft would not be released from the manufacturer.




[Edited 2013-07-05 04:57:51]
Aircraft are marginal costs with wings.
 
User avatar
KarelXWB
Crew
Posts: 19520
Joined: Sun Jul 15, 2012 6:13 pm

RE: How Airlines Purchase Their Aircraft?

Fri Jul 05, 2013 11:55 am

Here is an example how Doric finances their A380s.

http://www.4-traders.com/DORIC-NIMRO...V-Asset-Manager-s-Report-17066184/
Close, but no cigar http://vine.co/v/OjqeYWWpVWK
 
DTWPurserBoy
Topic Author
Posts: 2324
Joined: Fri Feb 19, 2010 10:33 pm

RE: How Airlines Purchase Their Aircraft?

Fri Jul 05, 2013 12:10 pm

Quoting chieft (Reply 1):
I recommend the following book, which gives you some answers:

http://www.amazon.de/Buying-Big-Jets...70910

Thanks for the link! just ordered the book.
Qualified on Concorde/B707/B720/B727/B737/B747/B757/B767/B777/DC-8/DC-9/DC-10/A319/A320/A330/MD-88-90

Who is online

Users browsing this forum: N809FR and 9 guests