2nd Hand Aircraft2. hand aircraft
Most of the large carriers rent at least some of their aircraft. At the end of the day, most airline customers do not pay the full fare. Leases enable airline operators with low financial statements or bad outlook to expand their capacities without tying up additional funds. Indeed, the biggest aircraft operators are aircraft rental corporations.
GECAS (General Electric Capital Aviation Services), for example, the biggest aircraft rental company, currently operates around 1,700 aircraft with 230 operating companies worldwide. Other ( non-governmental and generally inexpensive) carriers, such as Ryanair, are happy to owe most of their aircraft. Ryanair negotiates very good sourcing with Boeing (by purchasing large aircraft packages, all B-737s), uses them for about 5 years and then sells them before their prices have become too low.
The resale value of this aircraft is an important factor to take into account when benchmarking lease and sale as well as fiscal inducements resulting from amortisation. On the other hand, heritage carrier (many of them state-owned) tend to buy most of their fleets and keep them for the life of the aircraft (about 30 years).
There is no publicly (understandably) real quote that a business will pay for a particular aircraft, and most of the numbers you might find refer to "list prices". In 2005, however, Ryanair was obliged to reveal facts about one of the huge (previous) acquisitions of Boeing aircraft. Apparently, they pay less than half the official listing fee.
For more up-to-date information on the real prices paid by Boeing carriers for their aircraft, click here, where Javier Irastorza analyzes the rebates granted by Boeing on the basis of a review of their aircraft balances.
The IAG considers its A380 option too costly and would like to rent it second hand.
This move is part of a policy to increase the share of aircraft that the International Airlines Group (IAG) has rented within its aircraft portfolio, Willie Walsh said at the Airline Economics Aircraft Financing Event in Dublin. "â??We have A380 options...but we will not run them because they are too expensive,â? he said.
Mr Walsh said IAG was also interested in renting or purchasing more used Boeing (BA.N) 777-300ERs. "We probably see a greater mixture of lease contracts in the future in the aircraft than we have had so far," he said. Lease has historically been seen by large incumbent airlines as an costly alternative, often with large rebates on new aircraft orders.
However, airline companies are looking more and more for a lessor that can quickly build and pull capacities in the near term to meet changing demands, according to industry analysts at the event. "The adversities of off-balance leases from the world's mega-bearers have disappeared forever. Lease is here to stay," said Steven Udvar-Hazy of Air Lease Corporation (AL.N) in reply to Walsh's comment.
Mr Walsh said that IAG was considering whether to add another five or six Airbus to British Airways' A380s, but that the aircraft could also be suited for Iberia's Spanish subsidiary. Said the aircraft was a success for British Airways on high-demand airways, but did not necessarily have to make frequent departures, which cleared a seat at London's crowded Heathrow International Heathrow.
IAG' s hunger was limited due to the immobility of the aircraft, which in his opinion allowed relatively few itineraries. This 544-seat Airbus 80 was a big hit for the Airbus (AIR.PA) and has not yet been tested on the used aircraft aftermarket. As the first rented Airbus 380 aircraft are due to resume in 2017, Malaysia Airlines also plans to unload some Airbus 380 aircraft as part of its restructuring.
"There is no timeframe, it depends on when planes are available, we are not in a rush," Walsh said to reporters on the fringes of the meeting, and added that the IAG had already had discussions with landlords. A A380 would not be a substitute for the 747 currently operated by British Airways. Welsh said the low cost of crude gas means the airline will not speed up the jet's retire.