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Post by peter on Mar 18, 2013 16:02:41 GMT 1
OK, here's one for the die-hards on this great new board.
Lion Air, started operations in 2000 with a couple of old 737's. In 2012 and 2013 they ordered 230 Boeing 737's and tossed in 150 options for the same and just over a year later 234 Airbus Single aisles. That's 464 firm orders.
Just been to Indonesia and with the value of their Rupiah, it seems you need an An-124 loaded with those bills out to Seattle and Toulouse to pay for all these aircraft. So, where does all the money come from for those orders. Surely A and B will not trade for rice.....
For comparison: American Airlines have been operating for decades and they are under financial protection, ordering a fraction (.. ) of the same types, after "approval" by a judge.
Any insights on the financing for those huge orders are welcome.
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philidor
in service - 6 years
Posts: 8,950
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Post by philidor on Mar 19, 2013 0:59:33 GMT 1
Any insights on the financing for those huge orders are welcome. Here is an overview. The main problem with commercial aircraft funding is that airlines often are somewhat shaky companies making huge investments. Funding is therefore based on the value of the purchased equipment (aircraft value). Usually, if the buyer is considered as an efficient and professional airline, funding the purchase of new airliners is not so difficult. Actually, for a financing institution, airliners are excellent assets (very good collateral for a loan). - If everything goes wrong (i. e. if a revolution or any kind of unrest breaks out), they are easy to move to a different place. So an airliner is a safer asset than, for instance, a hotel. - There are few aircraft and engine manufacturers and not so many aircraft types. Therefore, if a borrower goes bankrupt, you have a very good chance to find some other airline ready to buy or lease whatever aircraft is reclaimed from the failed company. Of course, this is especially true of very common types like B737 or A320. Funding unusual airplanes (i.e Russian airplanes)is more difficult and would require more equity. Funding the purchase of used aircraft requires expertise from the financial institution because they need to assess the market value of the aircraft. Such views explain why banks or lessors do not like aircraft customisation, or engine options, which may depreciate used aircraft values. Huge orders are executed over a very long period, and funding is often provided through several successive contracts, sometimes with different institutions. Airlines usually enter discussions about funding before committing to order aircraft, but loan or leasing agreements are often formalised only after the sales contract has been signed. Funding must however be arranged before pre-delivery payments are due.
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Post by eastmids13 on Mar 19, 2013 9:51:32 GMT 1
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Post by eastmids13 on Mar 19, 2013 10:05:35 GMT 1
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Post by eastmids13 on Mar 19, 2013 10:11:19 GMT 1
In summary it was floated in 2010 at £1.00/share, currently paying a target dividend of 9p/annum (2.25p/quarter)& a share is now worth £1.255 (reflecting then remaining annuity I guess) - a pretty good ROI to date.
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Post by peter on Mar 19, 2013 16:26:57 GMT 1
Thank you for explaining
Peter
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tomparis1
Final Assembly Line stage 2
Posts: 390
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Post by tomparis1 on Apr 22, 2013 10:52:02 GMT 1
Today I found a interesting article in “Aero Telegraph”: www.aerotelegraph.com/ranking-die-laengsten-pisten-startbahnen-landebahnen-der-weltThe longest runways in the world: Rank 10: Harare International Airport, Zimbabwe - 4725 metres. Rank 9: Erbil International Airport, Iraq - 4800 meters. Rank 8: Madrid-Torrejón Airport, Spain - 4818 meters. Rank 7: Hamad international Airport, Doha, Qatar - 4850 meters. Rank 6: Denver International Airport, United States - 4877 metres. Rank 5: Upington Airport, South Africa - 4900 meters. Rank 4: Embraer Unidade Gavião Peixoto Airport, Brazil - 4967 meters. Rank 3: Ulyanovsk Wostochny Airport, Russia - 5000 meters. Rank 2: Ramenskoye Airport, Russia - 5402 metres. Rank 1: Qamdo Bamda Airport, Tibet, China - 5500 meters. According to my information, the A380 requires a width of 45-60 m. Unfortunately, I found no information on the minimum length of the runway. Do you have an answer? Thanks;)
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Post by chornedsnorkack on Apr 22, 2013 15:39:50 GMT 1
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Baroque
in service - 2 years
Posts: 3,991
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Post by Baroque on Apr 22, 2013 19:07:18 GMT 1
Rank 1: Qamdo Bamda Airport, Tibet, China - 5500 meters. 5500 Metres! Wow! I suppose it's got something to do with altitude considering it's in Tibet?
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K
spotted unpainted on the Flight Line (waiting for painting)
Posts: 1,126
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Post by K on Apr 23, 2013 15:08:37 GMT 1
Rank 1: Qamdo Bamda Airport, Tibet, China - 5500 meters. 5500 Metres! Wow! I suppose it's got something to do with altitude considering it's in Tibet? Definitely yes! It also has another very interesting thing...the airport is located 173 kms away from the downtown Qamdo...
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