Arniepie
Topic Author
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Joined: Thu Aug 04, 2005 11:00 pm

Belgium 10 yr dry lease 2 falcon 7-x for 124 million Euros

Sat Sep 14, 2019 10:23 am

Belgium just contracted a 10 year dry-lease for 2 falcon 9-X for the sweet som of 124million €, give or
take 140 million $.
This seems an absolute insane deal, I checked it on multiple news sources and they all come up with the same numbers.
Even at the full new price these would only cost about 100 million $ for the 2 of them, in the current market I'm
sure that you can get them for 60 cents on the dollar.
This is just insane IMHO, something definetly doesn't add up.
BTW, they are selling their Embraers for a couple of million of dollars, the old 900EX goes to the scrapyard and the A321 lease
from HiFly seems to come to an end.

Either I'm missing something, or something is seriously wrong here???

source in dutch
https://www.hln.be/de-krant/defensie-hu ... /#comments
[edit post]
 
tomcat
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Re: Belgium 10 yr dry lease 2 falcon 9-x for 124 million Euros

Sat Sep 14, 2019 10:48 am

It is a 12 years lease, not 10, but still, this looks very expensive for the limited number of hours and cycles that these aircraft will see over those 12 years. But hey, the Belgian government (the one I'm paying my tax to) is not known for being thrifty. The taxpayer money is there to be wasted.
 
jellyhead
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Re: Belgium 10 yr dry lease 2 falcon 9-x for 124 million Euros

Sat Sep 14, 2019 10:54 am

Firstly I suggest the title is changed as no Falcon 9-X exists. The article is clearly mentioning Falcon 7X.

Secondly USD 140mio for 2 brand new 7Xs is reasonable. I can't read dutch but I guess the deal includes "FalconCare" as well as gold engines maintenance program for the duration of the contract plus includes the all prescribed maintenance, avionics maintenance programs, charts, crews training etc. - the whole package. Aviation and especially the business one is pretty expensive. So the deal seems legit and there's not much to talk about.
 
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Francoflier
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Re: Belgium 10 yr dry lease 2 falcon 9-x for 124 million Euros

Sat Sep 14, 2019 10:57 am

I can't read the article, but the contract might include a lot more than just a 12 year dry lease. Governments usually like to include maintenance and spare parts coverage and demand reliability guarantees over the period of the lease.

A complete maintenance package for 2 aircraft over 12 years, including parts, would be worth quite a few million dollars in itself...
I'll do my own airline. With Blackjack. And hookers. In fact, forget the airline.
 
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Aesma
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Re: Belgium 10 yr dry lease 2 falcon 9-x for 124 million Euros

Sat Sep 14, 2019 12:25 pm

Yeah I'm sure it includes everything bar pilots, fuel and hangar/landing fees.

However since money is beyond free at the moment, it's dumb to not buy them outright.
New Technology is the name we give to stuff that doesn't work yet. Douglas Adams
 
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zkojq
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Re: Belgium 10 yr dry lease 2 falcon 9-x for 124 million Euros

Sat Sep 14, 2019 1:34 pm

Are we sure they don't mean the Space-X Falcon 9? :duck:

I never understand governments buying new business jets. Buy a five year old GLEX or Falcon 7X and save your taxpayers some cash. Or even better a fifteen year old GLEX.
First to fly the 787-9
 
blueflyer
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Re: Belgium 10 yr dry lease 2 falcon 9-x for 124 million Euros

Sat Sep 14, 2019 2:12 pm

The lease does include maintenance and crew training. The government estimates it will save €44 millions over the life of the lease compared to keeping the current fleet in service. Reportedly only two qualified bidders replied to the RFP...

Neither aircraft will carry official government markings. Apparently Belgium has a side hustle renting out its fleet to the EU and NATO from time to time, and they don't want an official livery getting in the way of that.
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lightsaber
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Re: Belgium 10 yr dry lease 2 falcon 7-x for 124 million Euros

Sat Sep 14, 2019 2:18 pm

Corrected title to 7x of article. Moderators do not edit post content.
IM messages to mods on warnings and bans will be ignored and nasty ones will result in a ban.
 
tommy1808
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Re: Belgium 10 yr dry lease 2 falcon 9-x for 124 million Euros

Sat Sep 14, 2019 6:51 pm

zkojq wrote:
Are we sure they don't mean the Space-X Falcon 9? :duck:

I never understand governments buying new business jets. Buy a five year old GLEX or Falcon 7X and save your taxpayers some cash. Or even better a fifteen year old GLEX.


When you can get negative interest rates it actually costs the tax payer money to buy used planes instead of new ones.

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SamTheGeek
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Re: Belgium 10 yr dry lease 2 falcon 9-x for 124 million Euros

Sat Sep 14, 2019 7:37 pm

blueflyer wrote:
Neither aircraft will carry official government markings. Apparently Belgium has a side hustle renting out its fleet to the EU and NATO from time to time, and they don't want an official livery getting in the way of that.


An interesting side-hustle, to say the least. Odd that the US Air Force doesn’t provide organic transport to NATO leadership, though I expect this kind of wasteful spending from the UN.
 
Jetty
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Re: Belgium 10 yr dry lease 2 falcon 7-x for 124 million Euros

Sat Sep 14, 2019 8:27 pm

If you have the highest tax rate in the world you have to spend your money somewhere. Apparently on excessive leases for falcon 7-X's as well. :shakehead:
 
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FlyRow
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Re: Belgium 10 yr dry lease 2 falcon 7-x for 124 million Euros

Sat Sep 14, 2019 8:34 pm

One for flanders and one for walonia I suppose given belgian waffle politics. :-p
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LJ
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Re: Belgium 10 yr dry lease 2 falcon 7-x for 124 million Euros

Sat Sep 14, 2019 8:42 pm

FlyRow wrote:
One for flanders and one for walonia I suppose given belgian waffle politics. :-p


Then they would miss one for the German speaking part of Belgium...
 
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FlyRow
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Re: Belgium 10 yr dry lease 2 falcon 7-x for 124 million Euros

Sat Sep 14, 2019 8:48 pm

LJ wrote:
FlyRow wrote:
One for flanders and one for walonia I suppose given belgian waffle politics. :-p


Then they would miss one for the German speaking part of Belgium...


Not part of the waffle policy farce. Plus german Belgium is really marginale.
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