Cornering the Market

[joefremont]

A member pointed out to me that two airlines, 'Westfalen AIr' and 'A British Virtual Group' currently own most of the aircraft for sale on the market and unlike other airlines, their sale price is 100% the value of the aircraft rather than the normal 90%. Right now the system (FSA Aviation Inc.) owns about a third of the market.

I am not sure if I should be upset about that. It is a free market after all and for their time they are only making a 10% margin on those aircraft. There is a job that runs where the system will buy aircraft that have been on the market a long time, but these two airlines won't benefit from that as the formula the system uses to calculate the probability of a purchase on any give day involves the difference between the aircraft value and price multiplied by the number of days on the market. Since the difference in price is 0% they will never be purchased.

I have on occasion thought someone was trying to corner the market on a given aircraft and I flooded the market with more of that aircraft, but later I just created a job that will add aircraft to the market by looking at the number produced, the number in the system and the number in the market.

You can always place an aircraft order and wait a day or two and get your aircraft at the 90% rate, but that does not help those who go to the market looking for deals.

[ADAM-007]

I propose Virgin XL buys every single one and scraps it for a 'market reset' lol

I did wonder why Westfalen were buying all our aircraft fairly consistently. Hmm, this is a hard one really as they're not exactly profiting and its only 10% more than the 90% guide sale price.

I guess on a 350mil aircraft an extra 35mil is a lot for airlines starting out.

Perhaps a simple fix would be to stop not allow resale of an aircraft over the 90% guide price if its been in the airline for less than 90 days or something?

[joefremont]

I propose Virgin XL buys every single one and scraps it for a 'market reset' lol

I did wonder why Westfalen were buying all our aircraft fairly consistently. Hmm, this is a hard one really as they're not exactly profiting and its only 10% more than the 90% guide sale price.

I guess on a 350mil aircraft an extra 35mil is a lot for airlines starting out.

Perhaps a simple fix would be to stop not allow resale of an aircraft over the 90% guide price if its been in the airline for less than 90 days or something?

Part of me thinks, well they are having fun so why should I get in their way. If I was going to do anything, that job I wrote to add aircraft to the market, when it counts up the number of a given type of aircraft on the market it could ignore anything with a price above 91%, it will be harder to play 'whack a mole' when the system just keeps adding more aircraft. But then again they are having fun and its just 10%.

[Cat]

Well if you want something fast and right now, they are the "7-11 store" with comparable higher pricing. If you don't mind waiting, you can save a few million by simply ordering one off the out of production list A320-200 for example. So I don't see any monopoly type thing going on at all. I think long term the parking fees and mandatory maintenance may be their biggest issue when people don't buy their airplanes at max value. They will have to drop their prices eventually. Or maybe they are just trying to see how many they can collect.... LOL.