QQ...
If I buy an aircraft, and later want to sell it, I put it up on the market.
Once I put it up on the market, does AS buy it up if it doesn't sell for a period of time?
Saad
If you offer it for 10% of the value (the lowest possible starting bid) and no one makes an offer withing 2 weeks, AS will make a bid.
Hi Saad,
there is no buy-market for second hand planes. AS says there is... but in my opinion, they live in denial.
If you buy new or nearly new planes, I doubt that you will be able to sell them at book value (new price minus depreciation). If you buy popular types like the 737, you may be able to sell them later on... if you lower the price enough. I regularly put used 73G's and 739's on the market, loose 10 million on top of the depreciation, and there are only two (big) airlines who are willing to buy them.
If you're talking about a less popular plane, you're stuck with it. Last year I put a three year old 767 300ER on the market, at 45 million. After six months, it still wasn't sold. I have put it back in active service.
Since the new second hand market was introduced, AS does not buy planes anymore. At 10% of the book value, someone else will buy the plane in less than two weeks :-)
Jan
That's why if I'm buying a plane, it would be the wide bodies since they tend to be good for a long time and improves the margin of LH and ULH flights to boot.
I was more interested in using this to transfer funds to a subsidy, Buy an aircraft, transfer to sub, and sell.
I guess it doesn't work. Thanks for the non-sarcastic responses (almost) everyone ;)
It does work like that. I've done it many, many times. It's a very useful tool.
I was more interested in using this to transfer funds to a subsidy, Buy an aircraft, transfer to sub, and sell.
Hi,
in that case you need a plane that is at least 20 years old and written off. Something you buy at 10% of its original value and that you afterwards sell at the same price. No money lost...
Jan
I keep an old 737-200 on stock for "transferring money". It was 1.5 million to buy it and I will keep it ... it was a very small price to pay for this option.
Now, if you could sell aircraft for a % of value to subsidiary, it would be even better. Right now you can only transfer at 0% or 100% of value.
Hi Saad,
there is no buy-market for second hand planes. AS says there is… but in my opinion, they live in denial.
If you buy new or nearly new planes, I doubt that you will be able to sell them at book value (new price minus depreciation). If you buy popular types like the 737, you may be able to sell them later on… if you lower the price enough. I regularly put used 73G’s and 739’s on the market, loose 10 million on top of the depreciation, and there are only two (big) airlines who are willing to buy them.
If you’re talking about a less popular plane, you’re stuck with it. Last year I put a three year old 767 300ER on the market, at 45 million. After six months, it still wasn’t sold. I have put it back in active service.
Since the new second hand market was introduced, AS does not buy planes anymore. At 10% of the book value, someone else will buy the plane in less than two weeks
Jan
Hi Jan,
How did you put it back into service? I have an ATR on sale, not getting sold so i would like to stop the sale some way?
Regards
Hi Jan,
How did you put it back into service? I have an ATR on sale, not getting sold so i would like to stop the sale some way?
Regards
Had the same question some days ago ^^ You have to go to the aircraft-market, there you'll find a tab with "your offers" or similar, it's "Ihre Angebote" in the german version. There you can take your plane off the market again.
I was more interested in using this to transfer funds to a subsidy, Buy an aircraft, transfer to sub, and sell.
I guess it doesn't work. Thanks for the non-sarcastic responses (almost) everyone ;)
In that case it makes more sense to transfer an aircraft that the subsidiary can use at least, in case it doesn't sell.