How do airlines pay for new planes?

Question

Given that they cost hundreds of millions of dollars if not billions if they're ordering quite a few?

Answer 1

they either finance them with ILFC (International Leasing Finance Corpration) GECAS (Genral Electric Comercial Aviation Services ) They also keep there planes for along time maybe 20-30+ years

they trade in there very old planes so they don't have to pay them the full price

or they buy in bulk examples QANTAS 787 they  already have 65 on order and still have nalot more options

even Ryan Air when they ordered there first order was 155 737's -800 in 02 and can buy there 737's at sugnificantly lower prices than there competitors it has 304 planes either in service or on order

Answer 2

With the exception of the World's major airlines, the companies do not buy aircraft. The majority of the smaller airlines "hire" aircraft.

Answer 3

The airbus A380 cost upwards of $240 million dollars. Some huge airlines such as Singapore can afford to buy them. As said previously they are not always purchased but hired/leased. Still costing a lot of money. Also profit from sales. Easyjet, a well known airline in the UK. Operating to most European countries relies heavily on old planes and good old Stelios has them refurbished. After, you are not flying in them for long periods of time so luxury is not paramount, thus being cheaper!

Answer 4

They buy them on finance or charter them from the bigger companies.Do you realise that it costs £700 to keep an aircraft on the ground for 1 hour. True.

Answer 5

I doubt they write a check for them  They are probably financed. And have you seen what they charge for tickets.  Not much of that money goe to the food they feed you.

Answer 6

A lot of airplanes just get "Refurbished"..  They repair them or get new engines and get new interior work done on them.

Source-

Travel Counselor

Answer 7

I think they sell the old ones on ebay along with any unwanted Christmas jumpers they can scrounge to make up the rest of the money, then they spend spend spend!

Well thats what I would do if I was in charge. I would also buy more purple planes, white is getting a bit boring and theyre difficult to clean.

Answer 8

There are several ways:

The first way involves paying cash, which fewer and fewer airlines are doing.  Sometimes they will trade in old planes for credit.

The second way involves mortgaging the plane through a major lending institution.

The third and increasingly more popular way is to lease the aircraft.  This is done through specialized leasing companies like International Lease and Finance Company (ILFC) and General Electric Capital Aviation Services (GECAS).  They have the planes painted and furnished to customer specs and the airline is responsible for maintenance, crew, fuel, and insurance (as well as making the lease payments).  This option frees up airline capital for other purchases (like more planes, terminals, etc) but also cuts a bit into the bottom line due to the unending payments.  This is why airlines will fly the living daylights out of these planes to make as much money as they can in the shortest time.

Answer 9

They don't their passingers rent them.

Answer 10

considering they charge one passanger £500-£3/4000 if not more im sure they are able to pay for them, i mean 0ne aeroplane well a small plane can hold up to  100 pasangers and if the tickets were priced at £1000 thats 100,000 pounds so do your simple maths it all adds up.

Answer 11

Nearly all airlines lease aircraft these days.  This allows them to keep more cash on hand and they assume less financial risk.  It also allows them to keep their aircraft fleet young.

Answer 12

it depends on the aircraft they are buying (just keep in mind that not all aircraft at the airport or in the hangers our the airports planes)

but they do invest in aircraft purchases