Purchase Aircraft/Payment Options

[Unknown98]

Mostly finished with this system now. You can select particular payment terms when purchasing new aircraft. This is on order/at delivery, so in the example below it would be pay 70% now, and 30% on delivery. Everything is dynamic and the total cost updates real-time with jQuery.




Only thing left to do now I think is the quantity discounts for bulk orders. Anyone have information on that? For example what is the typical discount, and how many aircraft do you have to purchase to get a discount... obviously in real life these are negotiated but we're just looking for an average here.

[Carde]

Regarding the discounts:

1: 100%
5: 92.5%
10: 80%
20+: 70%

Just as an example, we all know they get quite high, but no idea how idea. I guess one could delve into the books of publicly traded airlines to find out, but I would not know where to look

[POTKC]

I know that at some point an order for 100+ A320s/A319s (I think by easyJet) was sold with an over 50% discount. Perhaps here a 60% discount should be the limit, no matter how many aircraft you buy?

[Unknown98]

I know that at some point an order for 100+ A320s/A319s (I think by easyJet) was sold with an over 50% discount. Perhaps here a 60% discount should be the limit, no matter how many aircraft you buy?

This is true. Huge orders do tend to have massive discounts, sometimes over 50%. I believe there was a story about Ryanair and some financial information got leaked out, basically proving that they paid below 50% list price for an order of 737s.

But for now, quantity discounts have been implemented as Carde suggested just to get the system working. We'll change them in the future I'm sure.

Price Each value will update depending on the quantity you select. That then changes the price variable throughout the rest of the calculations.

[POTKC]

Will there be a way to not pay for all aircraft at the same time? For example order 5 planes, get the 8.5% discount, but then have the planes deliver every week so you don't pay one lump sum? I mean the total price is agreed upon but payed in installments upon each delivery. Or perhaps all aircraft can be delivered at the same time, but a payment plan created so you pay them off over time?

[Unknown98]

Yes. Sort of. The way it works is you pay the remaining balance per aircraft as they are delivered. So for example lets say you order 5 A319s and select the 60/40 option:

89.6m - 7.5% = 82.88m
82.88m x 5 = 414.4m <--- total cost

60/40 means you pay 60% now, and the remaining 40% on delivery, as each plane is delivered. So:
414.4m x 60% = 248.64m <-- you pay this now as lump sum

Then,
414.4 x 40% = 165.76m <-- remaining balance
165.76m / 5 = 33.152m each <-- you pay this as each aircraft is delivered

[skifans]

What should happen if you select an option with pay on delivery and then have insufficient funds?

[Unknown98]

I don't know

Maybe if you don't have the funds to pay for it on delivery, the delivery is extended x amount of days and then it tries to deliver again? And if this happens so many times you lose some credit rating and/or reputation?

[POTKC]

Perhaps after x tries to deliver you lose the opportunity to get the plane and don't get the deposit back? Then that plane could go on the used market (with zero flight hours, so more expensive but better than other used planes)?

[chaitanya]

When will a Sell aircraft feature be here?