Chinese Aviation Industry
- Thread starter FriedRiceNSpice
- Start date
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Lieutenant General
Word...it's all about the Benjamin (Ben Franklin on the $100 bill) or should I the Mao (Chinese RMB).
my first thought was that magical word too, PROFITS. but would a bank just go into any biz that is profitable even if they know nothing abt it?
MwRYum
Major
A diversification of business is one, and pretty stable source of income for another. Also, an airline operator have to be at a certain size to make it reasonable to own a fleet themselves, smaller regional carriers or budget airlines would have difficulty in doing so - leasing airliner would be easier, with a lower entry capital and budget, shorter waiting time to gain operational status...
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Lieutenant General
Banks could always hire outside firms to manage the business for a fixed fee.
a couple of pieces of news here.
In this one, African carriers order 6 Ma-60s. Including these orders, the MA60 series aircraft has received 202 orders—16 for the MA600 and 186 for the MA60. Some 54 MA60s have been delivered to airlines in China and abroad.
seems to be a few deals for leasing firms recently for C919. I'm not sure how sustainable this is.
In this one, African carriers order 6 Ma-60s. Including these orders, the MA60 series aircraft has received 202 orders—16 for the MA600 and 186 for the MA60. Some 54 MA60s have been delivered to airlines in China and abroad.
seems to be a few deals for leasing firms recently for C919. I'm not sure how sustainable this is.
lcloo
Captain
Leasing of aircraft has many advantages to the operators, and good income for banks.
Operators are able to deduct leasing costs from their revenue, reducing their income tax liabilities. They also need not worry about how to dispose the aircraft and storage costs once the aircraft is not needed for business operations, they just simply return the aircraft to the bank.
As for the bank, they put up the capital sum of money for the purchase, and charge extra sum to the aircraft operators, not unlike mortgage interests of your cars. Profit return is attractive. The bank retain owenrship of aircraft, and should the aircraft be returned, they can lease it to another airlines operator.
Operators are able to deduct leasing costs from their revenue, reducing their income tax liabilities. They also need not worry about how to dispose the aircraft and storage costs once the aircraft is not needed for business operations, they just simply return the aircraft to the bank.
As for the bank, they put up the capital sum of money for the purchase, and charge extra sum to the aircraft operators, not unlike mortgage interests of your cars. Profit return is attractive. The bank retain owenrship of aircraft, and should the aircraft be returned, they can lease it to another airlines operator.