Author Topic: Innovative Suggestions  (Read 937 times)


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Innovative Suggestions
« on: September 14, 2015, 02:57:22 AM »
Hi i'd like to offer a suggestion which I believe is unique and brilliant for VAM

  • Bank Loans
  • Aircraft Sellers
  • Leasing Corporations

With the implementation of VAM finances in 2.5 i believe this is the perfect opportunity to add these 3 suggestions.

Bank Loans
Just like mortgages, Banks lend money to airlines with the loan guaranteed by the aircraft. The bank can repossess the aircraft if the airline stops paying its loan.

Finance leases are similar to loans, except the bank then buys the aircraft from the airline (another sale/leaseback). The airline then makes monthly lease payments and at the end of the lease it owns the aircraft. Finance leasing is just like hire purchase.
Banks typically lend 85% of the aircraft’s value with airlines paying 15% in cash. This 15% is known as equity.

Aircraft Sellers
Still the cheapest way to finance aircraft but only an option for profitable airlines. This option is more like Boeing, Airbus, ATR, Embraer, Dehavilland, just to name a few. With this options, airlines that can afford this direct option of purchasing an aircraft would use this option.

Leasing Corporations
Operating lessors either order aircraft from manufacturers or buy them from airlines and lease them back (this is know as sale/leaseback). The operating lessor leases the aircraft to the airline, which is also called the lessee.
Leases can be as short as a couple of months to cope with seasonal demand like summer tourist peaks, ski seasons or the Haj. Airlines can also lease crew and pilots with aircraft, these are known as wet leases.
However, most leases are for three to five years with airlines paying monthly lease rentals.

Airlines like operating leases as they give them more flexibility.
 They are however quite expensive.

Please leave your thoughts and feedback.


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Re: Innovative Suggestions
« Reply #1 on: September 14, 2015, 10:57:33 PM »
I will review that, thanks for the ideas
VAM Creator and programmer.