Ahhh..it's only taxpayer's money!

[Joe Wicked]

Originally Posted by Tinker51

So let me see if I have this right. You're ticked because a company signed a contract to purchase an aircraft two years ago, an aircraft that is already paid for, an aircraft that is smaller more fuel efficient and newer than than the two aircraft it is replacing (thus less expensive to operate), and the sale of the other two aircraft will more than pay for the purchase of the one new one. They are clearly downsizing their flight department. I am not sure how you determine this is a bad thing.

1. They put a deposit on 2 years ago, not paid for. The article also said it is not uncommon for companies to forgo the deposit and not purchase.
2. The sale of the other 2 aircraft is not a certain. They are listed for 27M each, but not selling, once the price lowers, then maybe, but until then, it is not paying for anything and we don't know what the final selling price will be.
3. How long until this aircraft saves 50M in operating costs? A friend of mine sold his 90 Mustang GT 3 years ago because he was tired of paying the high gas prices. He bought a brand new Honda Civic so he would get good gas mileage and save money. So lets review:
Item/month Old New
Car payment 0.00 350.00
Insurance 60.00 90.00
Gas cost 60.00 40.00
Total/month 120.00 480.00
Obviously there is more that goes into the equation like repairs, insurance may go down or up on either car,etc... The mustang was in great condition and was reliable. But just the simple math shows that the Honda costs 4 times the Mustang each month. Until it is paid off, then it is about the same. Problem is we figured he would have to keep the Honda for 12 1/2 years to break even. He already hates the car and wants to get rid of it 3 years later.

I do not understand the detail financial stuff that companies do, but this is basic finance 101 to me.