How Much Does It Cost To Lease A Boeing 747-400 Monthly?

[@VisualApproach]

Annual award to Simple Flying for most random video topic of the year.

[@joydasgupta9445]

Kindly make a video on cost of flying the jumbo with maintenance expenses so we cud understand the economics of airline companies.

[@mgsaviation9292]

Fun fact: Today (26 September 2021) is 767's 40th first flight anniversary 🎉

[@frempass3309]

today?

[@mgsaviation9292]

@@frempass3309 yep, 26 September

[@MSRTA_Productions]

@@mgsaviation9292 Did not know that! I love the 767s a lot (mostly as freighters) 🎉

[@amineamine1969-n5c]

@@MSRTA_Productions HAPPY BIRTHDAY TO U 767 !!!!

[@mgsaviation9292]

@@MSRTA_Productions same, I love the 767s!

[@jaymzx0]

Great video. It would be wonderful to see a similar video outlining the additional costs. I know a lot of it varies and isn't well documented/public, not to mention the exclusive futures contracts on fuel, personnel, landing fees, and services like de-icing, but wide ballpark numbers at least would be interesting.

[@Jakobly]

50-100k isn’t bad honestly, could probably pay for that in a couple of flights in a perfect world

[@Amorousstake4]

Leasing is easy , maintaining old is hard

[@manojsubramanian7322]

Beautiful., really like this type of aircraft.

[@josesantizo4432]

I’d fly it around the world

[@mingming9604]

might be cheaper to just buy one at this point if you are gonna use it for more than a few months...

[@Sallaykargbo3480]

Thank you for sharing this video ❤❤❤

[@johnpoindexter6594]

THIS IS NOT COMPLETE & IT IS MISLEADING! Why no mention hourly overhaul reserves for the airframe, APU, engine and landing gear maintenance and shop visits?? THIS IS USD $1300 - $1800+ PER (BH) BLOCK HOUR FOR A B737-400 X THE NUMBER OF BLOCK HOURS THE AIRCRAFT FLIES PER MONTH.....

[@williamhaynes7089]

Wow, i have the money to lease one of these in my back pocket! (for about 2 seconds worth of lease)

[@alanmiller9681]

I’d rent it during peak seasons like Christmas or July and fly only on high traffic routes coast to coast. Look at a fill every seat approach possibly using a minimum bid process. Love the 747! Still try to take flights on KE to Seoul with the 747-8!

[@rogerpenske2411]

If I had enough money, I would fly out at 7:47 in a circle between Chicago and Phoenix Las Vegas and back to Chicago. Every flight between Chicago and Phoenix is jam packed

[@user-pw6qe7ur4q]

That was a lot less than i thought

[@whatever8282828]

the fees are very mild, but of course they are for really worn-out models on the market. And of course now we have to actually operate the damn thing.

[@wil8115]

cheaper than i was expecting.

[@gooner72]

If I could afford it, I would hire one for a month just because I could...... I absolutely adore the 747-400, she's a proper classic.

[@jfwfreo]

There is an interesting story in Richard Branson's autobiography about the founding of Virgin Atlantic and how Branson (not knowing how you go about starting and airline or leasing/buying an airplane) called up I think Boeing and just asked about acquiring a 747 (took a while to convince the Boeing people that he was serious and then they explained how and where he could lease one)

[@terohyvarinen4358]

Around 100 000 per month does not sound very bad. It does not mean that I will lease one. But let's see... on the trunk routes 747-400 is outdated and whatever but there are routes between some relatively frequently flown destinations. Let's say the route is flown back and forth 20 times a month. The cost of leasing is 2500 dollars per flight. You can charge passenger, say, 200 euros per flight. For the rent of the plane you have to sell 12,5 tickets. Now, a B747-400 burn something like 10 tons of fuel per hour during cruising. I do not the precise costs of fuel and it changes around the World and according to political situations and so on. So, how about 700 dollars for a ton, and, thus 7000 dollars for an hour. Then there are two or three highly paid guys sitting in the cockpit, the rest of the crow also get some cents for their effort, the aircraft maintenance, airport fees etc. And by the way: etc! Thus: 100 000 a month sounds anything that expensive. You can also go to bank, lend, say, 100 millions and by the aircraft. The yearly interest is one per cent. Only. Thus, one million per year and that divided by 12 is 83 333... marks. Then, add the paying the loan itself! In, say, 10 years your aircraft is worthless. Have you paid your bank loan before that? If you get in a trouble with your air line, you can just end the leasing contract according to your agreement. If you bought your aircraft but do not have any incomes, you are still paying the costs until you can pay your debt back. Is there anybody interested in buying your aged aircraft? How long does it take? Day by day, the worth of your aircraft is falling, flown or not! It should also be maintained, flown or not! Let's put the 747 you leased for a totally different business. The whole interior is changed and now the aircraft has 100 miniature cabins and works as a cubicle hotel by an airfield. You charge 100 dollars per night. You need 1000 guests per month. 33 per night. That is only for the leasing. You need more paying guests for maintaining the aircraft and so on. Maybe you do not have enough accountants around the year but you can fly your hotel to different destination according to the fluctuating demand. I do not think that this calculation makes any sense right away. I am just trying to figure the sum in the scale of the business an old 747 can be used for. All this just a kind of playful philosophy for me, as, I guess, the most of you, too!

[@tw0million]

really enjoyed this video! are the assumed lease prices month-to-month or would they be discounted for a longer term? also, wet-leasing would bundle come of the operating cost. How much would that add to the standard lease?

[@joydasgupta9445]

What a flight cycle definition?

[@rossmason8812]

I wouldn’t mind renting a 747-400 even for one night.

[@saigopal5086]

Ok It means I should start saving money 🤔

[@erichurst2496]

Does that include the hours on the engines?

[@amargoun]

I am interested in the Combi model (400M).

[@waltzawaydreaming1801]

I’m not quite sure I understand how this works out to be financially advantageous for the leasing company.

[@talljake]

Well for the same reason you mortgage a house. It allows airlines to function without the gigantic outlay of having to purchase of an aircraft in one payment.

[@waltzawaydreaming1801]

@@talljake I understand how the airline benefits, my question is how the leasing company benefits. Typically, in a lease, there is a capitalized cost, residual value, down payment, and a term at which point the asset will be surrendered. We know the payments and we know the list price of a 747 (admittedly no one really pays list). The X factor is that we don’t know the down payment. But irrespective of that, if a 747-400 (new) is around 100 million and the lease payment is 100k/mo and the term is 10 years, how does the leasing company yield a return on their investment (I’m making an assumption that residual value will not be high on an aircraft that was ending production when the lease began). And now, the leasing company has to find a buyer- and that can’t be easy as I’ve seen quite a few sitting in the desert.

[@norbertschmitz3358]

@@waltzawaydreaming1801 You are right, those figures make only sense because of Corona. Better 100 k in cash than paying x-thousands in parking fees. Right now, I guess some 80% of all long distance passenger aircraft are collecting dust in some desert. As for the pilots....quite a few might be handling a broom at McDonalds rather than the stick of a 747....lol. All very sad!!

[@ohheyalan123]

@@waltzawaydreaming1801 Leasing company gets to depreciate the asset on taxes. The revenue - cost of asset = tax free profit for them. They profit off the spread between cost to own and markup on lease. Make money simply owning the asset. Just collect the monthly lease and enjoy the money.

[@МаксПукас-п6л]

It is incredibly cheap 100k a month means that in 20 years the leaser will make just 24m profit For example, a320 costs like 100m

[@prokopf-9332]

A brand new 747 would have way higher lease rate, these are all already old aircraft whicht made up most of their purchasing cost. Also two things factor in - quad engines in general have become out of favour for higher operating costs, and due to corona demand for big airliners is still low.

[@klyplays]

@@prokopf-9332 corona is becoming extinct fast. 2022 will be completely corona free.

[@davidwebb4904]

@@klyplays I have a bridge for sale, if you are interested…..

[@bruceketcheson4877]

its a lot more when new, all the examples he shared were later life

[@MrBluebirds22]

@@davidwebb4904 didn't age well! 🤣

[@frankchan4272]

Is this wet or dry lease?

[@andromeda9340]

Likely a dry lease imo

[@kunjappanmenon1913]

To borrow a phrase from William Henry Davies, and with due apologies too, if I lease a Queen, I will find time To Stand and Stare.

[@adamrameli1990]

Cool

[@SAMann729]

What’s better though? Owning your fleet or leasing them?

[@vorfour]

thats depends, if you have money to buy or not

[@mabuleonkars9706]

I would use it for cargo

[@scottfuller6063]

So what are the operational and maintenance costs when leasing a 747-400? perhaps another video?

[@SimpleFlyingNews]

Thanks for the feedback! - TB

[@RaulRodriguez-wr8lq]

True,expensive,very.

[@SuperAgentman007]

They switched over to the 747-8

[@shivekyadav865]

Plz plz Make a series of the lease rates of various aircraft or at least of each type From Turboprop, Narrow body, Wide body……….. etc

[@AaronSmith-kr5yf]

I want to know the deal Iron Maiden had on their 747-400 when they did their Book of Souls tour in 2016-2017. It was owned by the charter flight company Bruce Dickinson flies with. In past lives it was used to transport pilgrims to and from Mecca.

[@alexanderhall4281]

Interesting. If I had the money I would lease one for a month with pilots crew and any of family to go and get some sunshine for two weeks and would look after the pilots and crew aswell.

[@aston-s]

Odd I looked into the idea of starting an airline and was quoted $1.2 million to lease an ATR-72, that was to cover the first three months. I figured that way high but didn't think it would be cheaper to lease a 747. (The airline idea was mostly a thought exercise not overly serious)

[@Kalvinjj]

Would it be a brand new aircraft? Or some extras included in the lease like insurance or maintenance handled by the leasing company? The 747s are getting so expensive to keep and operate that their costs are going really low, a desirable narrow body like a newer 737 or A320 might cost a heck lot more than a 747 too.

[@lapamful]

Great! Well that sorts out which plane I'm going to use to get my private pilot's licence... :P

[@jerrykokorian1218]

Not as expensive as one might think about the lease rates of the various 747 planes...but adding the extra cost of actually flying the plane that is another story.

[@dannymurphy1779]

How exactly did Richard Branson lease a 747 on his credit card, as said in his autobiography??? Would make a good video!

[@davidwebb4904]

So, about the same as a decent apartment in Central London…..

[@letsseeif]

Thanks for your informative video on the Lease of the Boeing 747 . This seems to be the DRY LEASE . At the conclusion this appears to be confirmed by your defining of it as sans everything except the aircraft. Interested to know the extra cost of the average Jumbo WET LEASE. thanks again

[@ronaldcuieii4775]

You know I'd conduct trade of commodities.

[@astron4606]

I’d just buy the plane instead, preserve the beast :3

[@nurrizadjatmiko21]

In fact of the 53 Boeing 747 400 passenger version still in service, 40 of them are airline operators and here's the list Air Atlanta Icelandic : 4 Air China : 3 Air India : 4 (Not Retired) Asiana Airlines : 1 (will retired in 2024) Atlas Air : 7 but some are charter flights only Iraqi Aiways : 2 Lufthansa : 8 (all will retired in 2025) Mahan Air : 1 Rossiya : 9 And Terra Avia : 1

[@mpsangha]

An Atlas Air 747-400 just came into DTW yesterday to bring the Baltimore Ravens in for their game against the Detroit Lions.

[@aviationlba747]

Air Atlanta Icelandic and Terra Avia 747-400s are only used for cargo.

[@vatnsfjord]

@@aviationlba747 not quite right, Air Atlanta has a fleet of both cargo and pax -400, but the pax planes are currently not flying

[@spongebubatz]

@@aviationlba747 the 747-400s he listed are still stored and in passenger configuration, so they haven’t entered conversion yet. It’s true that their future as a freighter is more than likely though

[@aviationlba747]

@@vatnsfjord Yes I know, but the PAX aircraft are only being used for cargo, mainly due to the COVID pandemic. They haven’t flown passengers since Saudi Arabian returned them.

[@AnotherPointOfView944]

I could sell my house and lease one for a few months.... but maybe I wont!

[@chadnga8]

If I could lease a 747 for a month... It's see how many times I could fly around the globe, and how many countries I could visit. I'd have a large section cleared out and turned into a dance floor... with a DJ and a disco ball!

[@ShakespeareCafe]

You'd have to ship some very high value cargo to make it worthwhile. Those big birds were retired because they are extremely inefficient in terms of fuel. Peak Oil is real, folks.

[@jatinkushwaha635]

Okay guys how about a contro? I'll put 1000 from my side!

[@tobyroyparkerjr.233]

Rossiya 747 400 are probably former transaero airlines.

[@PavlosPapageorgiou]

That's less than I expected. $300m purchase, 30y lifespan, $10m / year, shouldn't it be closer to $1m a month? Or these have already recouped their cost?

[@Supernaut2000]

Good Lord how do airlines make any money?

[@frankie_g8096]

Interesting

[@MSRTA_Productions]

Yes, very interesting indeed

[@swright4171]

Interesting, I agree.

[@felixr7223]

would rather lease a 747-8 or a 787 or A350, good baseline though!

[@computerbob06]

Surely you could set up a 1 aircraft airline and have a route that just flies around the planet, so if people want they could just stay onboard and fly around the world!?

[@MSRTA_Productions]

Hmm

[@carlosquinto1383]

Airlinesim is a great game where you can try all of this out

[@kenulepathirana9564]

2:57

[@johnpoindexter6594]

These leaae rates are actually a bargain!

[@frempass3309]

Its sad that the most popular 747 variant only has 30 active its sad

[@JAMESWUERTELE]

Overflight fees seem like robbery. Just my opinion though.

[@Kalvinjj]

Well someone gotta pay for all the ATC work right? And it sure ain't easy.

[@JAMESWUERTELE]

@@Kalvinjj seriously that’s what overflights pays for? If that’s it, I didn’t know that, and I learned something new.

[@lukethompson5558]

$105k/month is nothing. This is 1% of its total operating costs

[@AEVOYAGES]

Quick

[@proschjet8019]

Tasty

[@frempass3309]

I CAME HERE WHEN THERE WAS ONLY 50 VIEWS

[@BosworthMcG]

Oh my god! I wish I was you.