Hello Dj's Aviation!! I am so glad you made this video! I just couldn't understand how such a company works but thanks to you I know now :) Keep Up The Good Work!! I too am an aviation enthusiast and I am sort of working on a similar aviation RUclips channel just like yours but one of the few from India!
When Boeing delivers a brand new plane to an airline with their livery and all the aircraft is already leased? Does that mean that a leasing company don’t own an actual physical plane but only the papers of it? Thank you!
How does the livery of a leased plane work? Does the airline paint each plane they lease? Or is that the reason why there are some completely white painted aircraft for example by easyjet.
+Ksmash Gamer We might not even need a loan, because we could each find investors for $1-5m each. Then, most subscribers could work for the airline... But we would need pilots
Half of the world's leased aircraft companies are owned and managed from Ireland. China is trying to muscle in on it now but Ireland was once the major player. Read up on Tony Ryan (Ryanair founder) and GPA. Interesting.
That’s the whole point :) a number of viewers listen on the way into work or listen in the background. Visuals appear on videos I can do visuals for. However, it takes a large amount of time to do it. Of which I don’t have right now. Just bear with me ;)
DJ, i'm still confused to a degree. how do the airline leasing corps make their money on this model? i'm familiar with the IHFC owned by the edvar-hazy family because they bequethed huge money for the IAD museum. thanks in advance.
can you an explanation/comparison between jet-bridges/remote island/staircase near jet bridges? how much it cost/saving for an airlines if they opt either one and why airlines tends choose either one.
A fantastic topic! One example I can give is the Jetstar A321s with Sharklets which came from Europe to Melbourne. They had a stopover in Asia. I would assume that the aircraft may experience a number of stopovers. Thanks for your suggestion!
Ryno Madzo When ferrying a plane longer distances than the range of the aircraft they will often add auxiliary fuel tanks to the plane and if necessary will gut the interior to lighten the load and of course, no pax. I know when Hawaiian was getting their B717s from Long Beach, CA, they pulled the seats and ship them separately as well as installed temporary fuel tanks.
One question. Say an airline wet leases an A359 and has an accident, resulting in major damage. What would happen next. Would the carrier who was operating that plane have to pay the leasing company for the damages in full or what?
An Irish Group set up the 1st leasing Company in the world, half of all leased aircraft companies are & have there Head Offices, Ireland 🇮🇪 is the heart of Leasing Aircraft , 💯fact
I have a question. I want to know how far can smaller link planes (sometime international) how far they can travel like do they have to be built in the country they will be flying from because they can’t travel long distances? It’s kind of hard to explain this but I have done my best. Just curious.
At least in the United States, leasing costs are tax-deductible. So an airline can either buy an aircraft and get a small tax deduction every year as it depreciates, or it can lease an aircraft and deduct all of the leasing costs each year. Doing the latter allows the airline to keep more money. I don't know what the exact tax rate was for airlines in the US (it recently changed,) but it could have been around 30%. So by deducting the leasing costs, the airlines get to keep 30% of the costs. The same kinds of tax rules apply in many other countries. Leasing companies take advantage of the tax benefits of leasing by being able to charge more for an aircraft over the term of the lease agreement than it would cost the airline if the airline owned the aircraft. So the leasing company essentially gets to split the tax benefit with the airline leasing the aircraft. I'm guessing at the proportions here, but maybe a leasing company ends up getting 40% of the tax savings, and the airline ends up with the other 60% of the tax savings.
All i heard seem to be on the plus side and no downsides? There must be quite a few downsides or every airline in the world would just lease an aircraft
What about the paint coating of airline company....If British Airways leases a plane for say 3 years, they need to paint their plane according to their brand...then after the 3 years,now, Air France is willing to take the plane...so do the leasing company remove the British Airways paint and implement the Air France coat?...that is a huge cost isn’t it!!!!
I am wondering why there is no A318NEO being offered. I’m pretty sure that if airbus did that the. British Airways would upgrade their current fleet of A318s.
If for example a 788 was costing $250m (I'm not sure how much they actually cost) and the WET leasing company was leasing them at half price, which is $125m. There would maybe be a deposit of $25m, then over 15 years, they would pay $1.8m a year- I think. Hope I answered your question
The voodoo economics at play here can be computed by using a derivative of Euler’s famous and beautiful equation. You need a real number, an imaginary number, a transcendental number, nothing, something circular, something oscillating, something exponential and more than a hint of trigonometry. Oh, and a lot of voodoo, obviously... Here are the components: eeh (as in “eeh by gum, lad”), aye (“aye, you’re not wrong, mate”), pie (“pie in the sky”), the number one (“..too many”) and zero (“..clue”). So the equation, of course is: eeh ^ (aye * pie) + 1 = 0 🤪✌️
We are on the final stretch to 50K!! Thank you all so much for the continued support :) I think you’ll like the subscriber special.
Dj's Aviation I am waiting for 1 Million subs
Wet lease all the way! it slides in more smoothly.
49,226... nearly there, can't wait
Dj's Aviation Its so deserved! Well done!
Need some special video to celebrate 50k Dj. Maybe something unique like video on private jets especially ACJ, BBJ
Dj's aviation this is why I love your vids, your always teaching me new stuff well done man. So close to 50k, well done you deserve it.
I watch djs vids everyday they are best videos on youtube ive learned a lot of things here dj deserves more than 1mil subs
Detailed explanation of leases mate, great video!
Thanks dude!
Finally a video I had been wanting for such a long time! Thanks, DJ!
Hello Dj's Aviation!! I am so glad you made this video! I just couldn't understand how such a company works but thanks to you I know now :) Keep Up The Good Work!! I too am an aviation enthusiast and I am sort of working on a similar aviation RUclips channel just like yours but one of the few from India!
Thank you so much for that :) Hello!
Dj I am 100% sure you will reach 50,000 subscribers in no time
Best explanation of this I have ever heard.
Yesssss!!!! Thanks DJ for making this video. Looked forward to it.
Pleasure mate, thanks for watching!
Dj's Aviation no prob. Happy to be here.
49.2K!!!! Yes, an excellent idea and certainly something people can learn more about. Very nice to learn for your channel! Great explanation.
Thanks mate :) I appreciate your support! Congrats on 700!
Wow that’s great news! I see them every now and than! Nice video!
Thanks for another very informative video dj! Keep up the great work.
I learned something today!
Awesome!!
Two Bins same thing!
When Boeing delivers a brand new plane to an airline with their livery and all the aircraft is already leased? Does that mean that a leasing company don’t own an actual physical plane but only the papers of it? Thank you!
Great video. Please can you break down why an air carrier would sell to a leasing company, then lease that same aircraft?
Very good. Complex issue.
Thanks mate, without a doubt!
Outstanding insights DJ! 👍🏽
The videos in the background🛫 are amazing!🖒👌 Dj almost 50k you are killing it mate!😁✌
How does the livery of a leased plane work? Does the airline paint each plane they lease? Or is that the reason why there are some completely white painted aircraft for example by easyjet.
Hi Dj, I have always wondered, how much income does a full 787 aircraft with a 2 class configuration makes?
You are wrong about where the tenant pays for the maintenance for the house the owner pay for the maintenance of the house not the tenant
It depends on the agreement
Wow! Awesome content in this channel.
Hello mate :-) and so happy to see your channel come this far. Hard work pays off and see you at 50k 👍👊
Yees another vid been binge watching your other vids today
Hahha thank you my friend :)
What do you think about the next generation cargo plane? look forward to your next video!
great video dj!
I've flown on a leased aircraft by StarLynx with Monarch a few weeks before they ceased operations.
Awesome DJ you rock !!!
You mentioned Charter Flights. It’d be good if you could go over that too in this amount of detail
Thanks, you answered lot of questions that I had!!😆😆😆
How do the leasing company make profit on these planes with such high discount on the original price.
“And they will always pay on time” well, my dad wished his tenants would do the same! 😂
Could you make a video about the inaugural flight of AirBelgium next week?
All the Aussies on this channel should start an airline, that starts off with syd-mel flights on a319/18
+Ksmash Gamer We might not even need a loan, because we could each find investors for $1-5m each. Then, most subscribers could work for the airline... But we would need pilots
Good primer. thank you
great video !! 🔥
"I'm not going to explain the economics" - DJ
"here's a video on aircraft leasing economics" - also DJ
Hey Dj, love your content, could you make a videos regarding different types of engines in aircraft
Is there a stream tonight?!?!
Are the commercial viability metrics the same for light aircraft ?
Do a video on aircraft insurance companies.
Nice vid Dj
Thanks mate :)
Half of the world's leased aircraft companies are owned and managed from Ireland. China is trying to muscle in on it now but Ireland was once the major player. Read up on Tony Ryan (Ryanair founder) and GPA. Interesting.
Awesome, thumbs up! :)
My vid idea: talk about major world cities and their place in global aviation. I live in LA and would love to see how it fits in the aviation world
Fantastic suggestion :) I've got a few similar ones already written down. One day I'll get to them lol
That's a great idea! Also about the future of those hubs
With a leased plane, do they get painted to that airline’s colors. Thanks for the good video!
Hi, please make video on international route licences.
Good morning I want to know how long does it take to lease an airplane thanks for your reply ❤
Why are so many Chinese Banks buying the Comac. Is it to lease them?
What airport are these background shots taken?
Everytime i watch DJ Aviation vids is i either listen or just watch all the random planes flying and landing. Can we have some visual about the topic?
That’s the whole point :) a number of viewers listen on the way into work or listen in the background. Visuals appear on videos I can do visuals for. However, it takes a large amount of time to do it. Of which I don’t have right now. Just bear with me ;)
How do these companies start out though?
Example, Pal leased their a340s from Gulf Air and Iberia.
Does aircraft leasing means buying a second hand aircraft?
How do they operate for profit though? Like their business model.
DJ, i'm still confused to a degree. how do the airline leasing corps make their money on this model? i'm familiar with the IHFC owned by the edvar-hazy family because they bequethed huge money for the IAD museum. thanks in advance.
can you an explanation/comparison between jet-bridges/remote island/staircase near jet bridges? how much it cost/saving for an airlines if they opt either one and why airlines tends choose either one.
Hi DJ! Loved the video as alway ☺️ but, how do these companys make money? And are there lists out there to see which companys lease aircrafts?
Jota Aviation. Based at London Southend Airport. They are basically the aircraft version of enterprise rent a car.
Wet lease and dry lease?? What's the differences?
How do they get small aircraft with little range (for example an ATR72 from France) to countries like New Zealand?
That would be a good topic.
Same question that I have
A fantastic topic! One example I can give is the Jetstar A321s with Sharklets which came from Europe to Melbourne. They had a stopover in Asia. I would assume that the aircraft may experience a number of stopovers. Thanks for your suggestion!
+Divine Aviation It doesn't have the range to fly that, even with refuelling stops.
Ryno Madzo When ferrying a plane longer distances than the range of the aircraft they will often add auxiliary fuel tanks to the plane and if necessary will gut the interior to lighten the load and of course, no pax. I know when Hawaiian was getting their B717s from Long Beach, CA, they pulled the seats and ship them separately as well as installed temporary fuel tanks.
One question. Say an airline wet leases an A359 and has an accident, resulting in major damage. What would happen next. Would the carrier who was operating that plane have to pay the leasing company for the damages in full or what?
We want to lease the aircraft on wet hire for 6 months to 12 months so how much does t cost for the leasig of an aircraft
Can we see a return of the how to start an airline series?
Do some leasing company’s lease small planes like cessnas and Learjets
Can you lease business jets? Or is it only for the big commercial airplanes?
You can but it need more capital
You didn't mention the lead time issue. Buying a new aircraft has a much longer lead time to delivery than leasing.
An Irish Group set up the 1st leasing Company in the world, half of all leased aircraft companies are & have there Head Offices, Ireland 🇮🇪 is the heart of Leasing Aircraft , 💯fact
I have a question. I want to know how far can smaller link planes (sometime international) how far they can travel like do they have to be built in the country they will be flying from because they can’t travel long distances? It’s kind of hard to explain this but I have done my best. Just curious.
If you rent you don’t pay for plumbing maintenance lol that’s the landlords job idk how it is in Australia
Hoodini Sharif its the same in Australia, any maintenance issues are the responsibility of the Landlord and not the tenant.
Where can I find alumini of people who have completed there masters in aviation finance?
279 subscribers and you'll get to 50K!
can an airline only be leasing planes?
I have flown on an Air Corendon leased by SpiceJet airlines in india. Nice video anyways
Intellectual Hazard*/_\* isn't it leased TO Spicejet??
aproopjoshi same difference 🤣
So don't leasing companies just lose money when they buy brand new aircraft and rent them out at a lower price?
Amy Tomoe oh ok. I'm talking about the leasing company that buys the planes from boeing or airbus. Not the airline
At least in the United States, leasing costs are tax-deductible. So an airline can either buy an aircraft and get a small tax deduction every year as it depreciates, or it can lease an aircraft and deduct all of the leasing costs each year. Doing the latter allows the airline to keep more money. I don't know what the exact tax rate was for airlines in the US (it recently changed,) but it could have been around 30%. So by deducting the leasing costs, the airlines get to keep 30% of the costs. The same kinds of tax rules apply in many other countries.
Leasing companies take advantage of the tax benefits of leasing by being able to charge more for an aircraft over the term of the lease agreement than it would cost the airline if the airline owned the aircraft. So the leasing company essentially gets to split the tax benefit with the airline leasing the aircraft. I'm guessing at the proportions here, but maybe a leasing company ends up getting 40% of the tax savings, and the airline ends up with the other 60% of the tax savings.
Ha ha ha the first bit of footage is of the plane that I used for my flight sim from Vegas to London and then I managed to land with 40 secs of fuel
Awesome haha xD
what flight sim???
I know now I’m doing another flight from la to Honolulu
Is it possible to lease aircraft between two different countries or is it a bureaucratic mess to do that?
What does it DOOOOO😂😂😂😂
I think Qantas has its own lease company?
Werd
I will create my own airline company
Awesome
All i heard seem to be on the plus side and no downsides? There must be quite a few downsides or every airline in the world would just lease an aircraft
Why do you mostly see Asian and European carriers lease aircraft and not much U.S. carriers?
We don't we hear in your videos that new planes are not only bought by airlines but also leasing companies?
cheers f.or this video; very interesting
Biman Bangladesh man!! Make a video pleassseeeee
Hey
Edit:I am second and I tied with the third due to my slow internet connection
What about the paint coating of airline company....If British Airways leases a plane for say 3 years, they need to paint their plane according to their brand...then after the 3 years,now, Air France is willing to take the plane...so do the leasing company remove the British Airways paint and implement the Air France coat?...that is a huge cost isn’t it!!!!
What is the meaning of "wet leasing?"
Sorry just watched the meaning😂😂
Was just watching the aircraft tbh xD.
I am wondering why there is no A318NEO being offered. I’m pretty sure that if airbus did that the. British Airways would upgrade their current fleet of A318s.
How can the leasing company buy the planes cheaper than an airline.
kevin byrne my guess would be 'Volume discount' but I don't know.
Thanks.
Kindly can you please list the name of leasing companies thanks
Have you found the name of leasing company ?
Atlas Air, HiFly.
What does it DO?
What would be the monthly lease payment on a Dreamliner? On a 15 year contract.
If for example a 788 was costing $250m (I'm not sure how much they actually cost) and the WET leasing company was leasing them at half price, which is $125m. There would maybe be a deposit of $25m, then over 15 years, they would pay $1.8m a year- I think. Hope I answered your question
Ryno Madzo yes, thank you. So $150,000 a month
If the leasing company pays $250 million for a plane, and then leases it for half price, how is the leasing company making money?
John Mooradian There are more costs involved
wg=hat about hi fly you literally made a whole video about them obtaining the a380 from Singapore airlines
The voodoo economics at play here can be computed by using a derivative of Euler’s famous and beautiful equation. You need a real number, an imaginary number, a transcendental number, nothing, something circular, something oscillating, something exponential and more than a hint of trigonometry. Oh, and a lot of voodoo, obviously...
Here are the components: eeh (as in “eeh by gum, lad”), aye (“aye, you’re not wrong, mate”), pie (“pie in the sky”), the number one (“..too many”) and zero (“..clue”). So the equation, of course is:
eeh ^ (aye * pie) + 1 = 0
🤪✌️
Does anyone here play Airlines Manager?
697 more subs to go!