So, I was reading about what happens to planes' market value when an airline files for bankruptcy. It's kinda wild. Basically, the moment an airline hits bankruptcy court, the plane's market value and lease rates drop hard. Like, one second it's a valuable asset, and then boom, it's suddenly a big financial headache.
I guess the base value of the aircraft stays the same on paper, but that doesn't really help when the market value tanks. Makes you wonder how quick and drastic these changes can affect a leasing company's bottom line. Plus, think about the airlines looking to grab some of these planes at a bargain. Probably a smart move if they can afford it.
I'm curious about how this affects smaller airlines versus the bigger ones. Do they handle the drop in value differently? And what happens to the planes if they just can't find a new home? Do they just sit around, or is there a backup plan for these orphaned aircraft?
Anyone here have more insight into how this process works from the airline's perspective? Would love to hear what you guys think!
I guess the base value of the aircraft stays the same on paper, but that doesn't really help when the market value tanks. Makes you wonder how quick and drastic these changes can affect a leasing company's bottom line. Plus, think about the airlines looking to grab some of these planes at a bargain. Probably a smart move if they can afford it.
I'm curious about how this affects smaller airlines versus the bigger ones. Do they handle the drop in value differently? And what happens to the planes if they just can't find a new home? Do they just sit around, or is there a backup plan for these orphaned aircraft?
Anyone here have more insight into how this process works from the airline's perspective? Would love to hear what you guys think!