Why US arlines pay more for their jets

[Dizel8]

I found this interesting:

ATLANTA (TheStreet) -- In 2009, Delta(DAL) financed three 777s it bought from Boeing(BA), paying interest at 8.11% over nine and a half years. That same year, Emirates Airline bought three similar aircraft, paying interest at 3.4% over 11.9 years.

http://www.thestreet.com/story/10857852/why-us-airlines-pay-more-to-finance-jets.html?obref=obinsite

 

[FoxHunter]

I found this interesting:

ATLANTA (TheStreet) -- In 2009, Delta(DAL) financed three 777s it bought from Boeing(BA), paying interest at 8.11% over nine and a half years. That same year, Emirates Airline bought three similar aircraft, paying interest at 3.4% over 11.9 years.

http://www.thestreet.com/story/10857852/why-us-airlines-pay-more-to-finance-jets.html?obref=obinsite

Credit Risk? Just like buying a car, good credit you pay low rates, not so good you pay high rates.

 

[Dizel8]

No actually they were talking about financing through the US export bank, according to that article at least.

 

[SpauldingSmails]

Time to open a commercial aircraft lease company in a developing nation. It appears there's a a bit a margin that could be made buying Boeing aircraft overseas (not in the EU) and leasing them back to US and EU airlines.

 

[Green]

Maybe it has something to do with the fact that Emirates is the largest 777 and A380 operator in the world. They currently operate over 80 777's and will have a fleet of roughly 130 once they all arrive. When you buy in bulk you generally get a discount.

 

[Ad Lib]

Nope, the issue is that the US Government is subsidizing foreign sales to support Boeing (US Exports). The unintended consequence is that the subsidy results in an uncompetitive playing field for US Airlines that operate globally.

Analysts are making a good point that if the US Export bank is subsidizing Emirates (who's growth makes them both a threat to other international carriers and a bad credit risk) then that subsidy ought to be available to US carriers too.

Of course, the end result may be that US Airlines prefer Airbus jets since they are subsidized by the participating EU members.

Another data point is that US based airlines are starting to complain about the costs of fleet replacement (IMHO they can not afford to replace MD80's, 737's and 757's as they wear out).

 

[Max Powers]

Nope, the issue is that the US Government is subsidizing foreign sales to support Boeing (US Exports). The unintended consequence is that the subsidy results in an uncompetitive playing field for US Airlines that operate globally.

Analysts are making a good point that if the US Export bank is subsidizing Emirates (who's growth makes them both a threat to other international carriers and a bad credit risk) then that subsidy ought to be available to US carriers too.

Of course, the end result may be that US Airlines prefer Airbus jets since they are subsidized by the participating EU members.

Another data point is that US based airlines are starting to complain about the costs of fleet replacement (IMHO they can not afford to replace MD80's, 737's and 757's as they wear out).

Fiction....What in the world would be the motivation for a US financier, giving a sweatheart deal to Emirates????? It comes down to a myriad factors....Some but not all: Credit risk, amount of aircraft financed, trying to get Emirates to buy boeing as opposed to airbus and etc....

Why do the right wing wacks always look for the scapegoat. Right now it's imigrants and the fact that we have a "Muslim president" . We sure got some fools in this country.

 

[shon7]

cheaper financing would still not solve the problems of the US airline industry. ever experienced the product emirates puts out compared to the US carriers

 

[UpNDownGuy]

Fiction....What in the world would be the motivation for a US financier, giving a sweatheart deal to Emirates????? It comes down to a myriad factors....Some but not all: Credit risk, amount of aircraft financed, trying to get Emirates to buy boeing as opposed to airbus and etc....

Why do the right wing wacks always look for the scapegoat. Right now it's imigrants and the fact that we have a "Muslim president" . We sure got some fools in this country.

You really should read the article before commenting further.

 

[Dizel8]

Read the article Max!