Return to Lessor story (was Re: Long term storage)

From:         ehahn@bass.mitre.org (Ed Hahn)
Organization: The MITRE Corporation, McLean, Va.
Date:         15 Feb 95 03:42:21 
References:   1 2
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In article <airliners.1995.174@ohare.Chicago.COM> stevep@shell.portal.com (Steven H Philipson) writes:

      It may seem crazy to have a 100 million dollar airplane 
   just sitting there (especially when the financing is running
   $20,000 per day), but it can be the cheapest alternative for
   the airline.  This is a big-bucks business.  What seems like
   huge amounts for individuals is all just part of the game
   they're in.

====
Pardon me for changing the subject, but I have a story along these
lines from a couple of years ago...

I was working for an air carrier which had a run-out B747-100 to
return to a leasing company.  However, the terms of the lease said
that four overhauled engines needed to be returned on the wing
(probably particular engine serial numbers).  The airline did the
numbers, and determined that it was cheaper to buy the airframe (which
was out of time), rather than to put the aircraft into return
condition. 

So they bought it, and THEN put it immediately into storage, because
they couldn't pay for the aging aircraft modifications to return it to
revenue service.  I suspect that it will never carry passengers again.

Go figure.

ed

--------   Ed Hahn | ehahn@mitre.org | (703) 883-5988   --------
The above comment reflects the opinions of the author, and does not
constitute endorsement or implied warranty by the MITRE Corporation.
Really, I wouldn't kid you about a thing like this.