Lease cancellation by Lessor

Can it be a system policy that the lessor automatically reimburse costs for configuring an aircraft if the lessor cancels the lease within a short/limited amount of time?  This should prevent the lessee from bearing the expenses when the cancellation is the lessor's fault.

Or perhaps there should be a minimum lease (more than just a week) wherein the either party cannot cancel the lease. Or if they cancel early, they will be a penalty.

in what case is the termination of a lease by the lessor a fault?

Lease aircraft from the official lessor or establish good relationship with leasing companies so your leases do not get canceled. Communication is the key.

Lessor apparently put an aircraft for bidding for an alliance member.  There was no way for me to know about this.  I won the auction & lease, and I configured the aircraft.  In maybe an hour, I received a message that telling me that the aircraft is meant for someone else, and that the lessor will be cancelling the lease and that I would only have it for one week.  It seems that if a party backs out of a contract (in this case, immediately), there should be a penalty so that the innocent party will not lose any money.  In this case, while I get the deposit back, I lose the money spent on configuring the aircraft, money which is significant for a very new member.

That is always the risk with private lessors.

You still have the aircraft for a week. If you schedule it on a profitable route you should be able to recoup the configuration cost

You may feel like a victim, and I fully understand that, but you aren’t one. You signed a contract for one week, which automatically extends by another week if none of the two signers cancels it in time. Either does your calculation enables you to pay all one-time costs with the earnings of just one week, or you talk to the lessor before leasing and make sure that he will not cancel the contract after one week. Otherwise, it is your risk to sign the contract. In most cases it is no problem, but sometimes it is.

Now that your contract is canceled, you should change your calculation to earn as much money as possible. You can do that, because there is no further need to look for long-time effects like a negative maintenance condition. So by reducing the maintenance time below 100% with additional flights, you earn more money this one week.

So by reducing the maintenance time below 100% with additional flights, you earn more money this one week.

That is brutal :p

That is exactly the same situation i have had. I agree there should be a penalty for both party to sign a contact.

again: why?

you sign a contract for a lease of an aircraft with a garantueed minimum duration of one week. that is exactly what you get. everything beyond that is up to you and the lessor. and just like it is the lessee's right to return an aircraft if not needed, it is a lessor's right to terminate the contract if he needs the aircraft for other purposes.

That is brutal :P

Not really. It's a rational response to the new information that your renewable contract will only last the minimum duration. ;)

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Yesterday I was contacted by one of my lessors who wanted to cancel 3 CRJ100s. It was a very nicely written message and I will personally take inspiration from it if I would ever need to cancel a lease (which I have not so far).

again: why?

 

you sign a contract for a lease of an aircraft with a garantueed minimum duration of one week. that is exactly what you get. everything beyond that is up to you and the lessor. and just like it is the lessee’s right to return an aircraft if not needed, it is a lessor’s right to terminate the contract if he needs the aircraft for other purposes.

If you see nothing wrong here, I’d like to see the look on your face should your landlord show up on your doorstep an hour before month’s end telling you he’s cancelling your appartment’s rental contract and that you’ve got to be out by midnight…:wink:

Seriousely though, having no notice period (no related penalties) is neither realistic nor does it make sense. And it massively hinders the player-to-player market.

I’d vote for a six-day notice period and to make use of the deposit to work with penalties.

If my landlord gave me a contract with these conditions, I’d probably not move in in the first place

If my landlord gave me a contract with these conditions, I'd probably not move in in the first place

Which conditions exactly?

I mean, where do you see a difference?

I see none.

In Germany, you rent (lease) an appartment for an unrestricted period, minimum 3 months. You pay monthly in advance.

No difference to an aircraft lease in AS, only that we're talking weeks not months.

However, on your appartment you have notice periods you have to stick to - not by contract, but law (§573c BGB for reference)

So no matter what's in your contract, the landloard would need to cancel >=3months in advance.

In AS you have nothing like this.

If the lessor decides to cancel the contract only one second before end of period, you'll be without an aircraft the next moment.

This is so absolutely unreal. Or can you tell me where a lessor is allowed to do so in real life when a contract with open runtime is aranged?*

A real leasing deal usually has a fixed runtime. Totally different thing.

*Lessee's culpability withstanding

Wasn’t it said over and over that while this Sim runs in real time, the Financials etc. are set up in such way that one week in Airlinesim is equal to one or even two month of real life? In such case, one week notice in AS would equal two months of real life time notice.

Wasn't it said over and over that while this Sim runs in real time, the Financials etc. are set up in such way that one week in Airlinesim is equal to one or even two month of real life? In such case, one week notice in AS would equal two months of real life time notice.

The question for us should be:

How much time does it take for the lessee to find an adequate replacement for the canceled lease?

I’d say 24h to take notice (assuming a 1x daily login)

Plus the required production time for the replacement (up to 144h)

The result would be one full week.

But I think 6 days would be ok, as

  • the lessor would be able to cancel in the first 24h

  • the lessee would have at least full 6 days to react

Before adding some quick fixed, I'd vote for a more thorough overhaul of the leasing function. With proper fixed term leasing contracts, and all the other suggestions posted here and there.

I think the notice could be standardized at 5 days before the lease renewal. One day to log in, one day on average to produce the aircraft and 3 days to switch the flight plans over to not lose generated bookings.

Before adding some quick fixed, I'd vote for a more thorough overhaul of the leasing function. With proper fixed term leasing contracts, and all the other suggestions posted here and there.

Sure that.

As you know, I’d gladly help getting this entire market stuff to something more useful.

Should we make this a project finally?