2 ms·
At the same time, anyone buying a fleet is expecting a discount for bulk. So the margin is thinner. It is, for example, how airplanes have been so competitive
by bobthepanda 3y ago
At the same time, anyone buying a fleet is expecting a discount for bulk. So the margin is thinner.
It is, for example, how airplanes have been so competitive despite there effectively being a duopoly. Pretty much no one is buying an airliner at list price.
- bluGill 3y agoSchool buses are a niche where everyone is buying about the amount of the same product from the same manufactures. You don't really get bulk discounts other than the same discount everyone else gets.
- SoftTalker 3y agoI don't think anyone buys them, period. They lease them. When the lease is up, they are re-leased or maybe sold to second-hand leasing companies or second-tier airlines, and ultimately they end up as freighters or scrapped. The last of the DC-10s/MD-11s only recently ended service with FedEx. They may actually still be flying some MD-11s.
- bobthepanda 3y agoBuying is fairly common; Indigo just placed the largest ever single purchase of airplanes (500) https://www.reuters.com/business/aerospace-defense/airbus-wins-historic-500-plane-indigo-order-2023-06-19/ https://www.reuters.com/business/aerospace-defense/airbus-wi... If you’re leasing it’s not for free, the lessor is charging you a premium to make a profit over what they’re spending, so it still makes sense to own, particularly for large, heavily utilized fleets that don’t scale down much.