Ordering Aircraft from the Manufacturer

English Boards General
1

I am exploring my first order directly from the manufacturer. However, a number of details seem to be… missing.

I see the production rate on the aircraft description page - where you can purchase or lease aircraft on the market.

I have also read about discounts with larger orders.

My questions are about deliveries and cash outflows.

Before you place the order, there seems to be no delivery (or potential) delivery information. Is is just 1 delivery every X hours according to the production rate? Or do I have to get in line behind existing orders - thus - if someone else has 10 airplanes ordered - then my first airplane is 11 production cycles from now?

When does the cash flow out of my account? Is it immediate? Or is it upon delivery? Is it different for leasing vs. purchasing. It seems like AS might allow me to “purchase” an aircraft, even though I don’t have enough cash currently.

Any details on how this works would be great.

Thanks in advance, and Happy New Year.

2

Answering your questions in sequence:

Deliveries every 36 hours would mean your first aircraft would be delivered in 36 hours, and the next in 72 hours, and so on. So your delivery dates/times are based on the production time of the aircraft.

  • If two seperate holdings have ordered planes (for example you and I) then there is no waiting involved. If we both ordered the planes right now, we would take delviery at the same time.

  • if you have more than on airline in the same holding, then your deliveries for the aircraft will be scheduled for after the deliveres for your other subsidy are completed.

  • If you buy an aircraft of the same type (for example, 5 737-700s and 5 737-900s) then the 737-900s will be delivered once the deliveries for the 737-700s are complete.

Once your aircraft is delivered, the first lease payment (thus your cash outflow) is scheduled for 1 week after your delivery.

I’m not sure about purchasing aircraft as I have not purchased any, but:

  • though you will have the option to purchase the aircraft, you will not be able to complete the deal if your enterprise does not have enough cash.

  • you somtimes also have the option to purchase the aircraft through a loan provided your enterprise can take out a loan of the amount needed.

  • if you lease a NEW aircraft, then you have the option to purchase it at a later date by going on to the Leasings page.

As for discounts, you get a 1.0% discount if you order a minimum of 5 aircraft. This goes up to 5.0% for 50 aircraft. This discount effects purchase price as well as lease payments.

Hope that helps you a bit.

Saad

1 Like
3

That does help. Thank you.

Through trial and error, I also learned that you pay the security deposit right away on a lease as well.

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4

In general, you´re right. But in this special case you are wrong. Just a short reminder: the -900 an the -700 do have different production lines, which means that they wont be on the same manufacturer order list

5

I did try ordering both for that very reason - and if memory serves me right, they were delivered one after the other (though this was some time ago).