US dollar plane purchases

[fish4life]

I would imagine with the Canadian dollar being so low a lot of Canadians looking to sell planes must be happy since they can get 20-30% more than they used to just 2 years ago. I am curious though if a Canadian company like Bombardier would sell Q400's to another Canadian company like Encore or Jazz would they ever do a purchase is Canadian dollars ? I know it is the standard for all aircraft transactions to be in USD but if most of the costs are in Canadian does this allow Bombardier to have a leg up on a company like Embraer or even Boeing / Airbus when offering discounts to international carriers since they are getting paid 20-30% more then they were not long ago for the C-series?

Just something I've been wondering this past week as Bombardier seems to not be able to discount the C-series enough compared to Boeing and the 737 since Boeing is pumping out 45+ 37's a month. I guess the only major hold back would be if Bombardier has off shored too much of the manufacturing/ parts.

One last question does anyone know if a company that likes the low Canadian dollar hedges costs in the opposite direction to take advantage of a low dollar going forward?

[photofly]

There is nothing aviation-specific about this: a low CAD is a benefit to all Canadian exporters. Yes, lots of companies in lots of industries hedge currency.

[xsbank]

Bombardier does business in US dollars.

[cncpc]

I would imagine with the Canadian dollar being so low a lot of Canadians looking to sell planes must be happy since they can get 20-30% more than they used to just 2 years ago. I am curious though if a Canadian company like Bombardier would sell Q400's to another Canadian company like Encore or Jazz would they ever do a purchase is Canadian dollars ? I know it is the standard for all aircraft transactions to be in USD but if most of the costs are in Canadian does this allow Bombardier to have a leg up on a company like Embraer or even Boeing / Airbus when offering discounts to international carriers since they are getting paid 20-30% more then they were not long ago for the C-series?

Just something I've been wondering this past week as Bombardier seems to not be able to discount the C-series enough compared to Boeing and the 737 since Boeing is pumping out 45+ 37's a month. I guess the only major hold back would be if Bombardier has off shored too much of the manufacturing/ parts.

One last question does anyone know if a company that likes the low Canadian dollar hedges costs in the opposite direction to take advantage of a low dollar going forward?

It isn't standard for all aircraft transactions to be in USD.

[redlaser]

I bought two aircraft from the USA, one when our dollar was a couple of cents more in value than the USA buck and the other when our dollar was .0.92 so I lost on that one, but what gets me is the Canadian tax on aircraft which is a large chunk of money considering its a percentage of the cost or value of the aircraft , to me that's a government rip off seeing that planes cost a lot more than cars, Years ago there was no tax on aircraft or aircraft parts, then everything changed when the Liberals came to power, these scroundls taxed everything, and now they waste our money on useless programs,

[crazyaviator]

I have no problem being charged tax on NEW products ( I would prefer that they were hidden) What gets my ire is having an aircraft taxed over and over again throughout its life when it is resold . But, alas, the people will not rise up and stop this, they just continue to be suckered into voting for lyers and abusers

[armchair]

From a prospective GA buyer's perspective, the low dollar sucks. All aircraft on controller.com are listed in US dollars, even most aircraft for sale in Canada. I looked at Diamonds, Bonanza, Mooneys, Cessnas and they all cost us 40 to 50% more. This is not unique to aviation though... the only advice is either to wait it out, or if you dont care about money, Hell with it and live it out anyway.

[Rookie50]

From a prospective GA buyer's perspective, the low dollar sucks. All aircraft on controller.com are listed in US dollars, even most aircraft for sale in Canada. I looked at Diamonds, Bonanza, Mooneys, Cessnas and they all cost us 40 to 50% more. This is not unique to aviation though... the only advice is either to wait it out, or if you dont care about money, Hell with it and live it out anyway.

If I ever offer my plane for sale, I'd be happy to convert it's price to C$, euros, yen, pesos, whatever you wish.

It sure is the standard to value all aircraft in USD, as they are by far the largest market, they set the pricing.

[CpnCrunch]

Some planes are priced in C$. A few I was looking at on controller were priced in C$ and then that was converted into USD.

I think sellers might have to rethink their USD pricing if they want Canadian buyers to consider buying their planes. The Canadian market is somewhat insulated from the US market, due to the PITA factor in importing.

[Strega]

I think sellers might have to rethink their USD pricing if they want Canadian buyers to consider buying their planes. The Canadian market is somewhat insulated from the US market, due to the PITA factor in importing.

I have imported several aircraft, and in fact, most aircraft in Canada were at one time imported... Never had any issues.

[Rookie50]

Some planes are priced in C$. A few I was looking at on controller were priced in C$ and then that was converted into USD.

I think sellers might have to rethink their USD pricing if they want Canadian buyers to consider buying their planes. The Canadian market is somewhat insulated from the US market, due to the PITA factor in importing.

Price in C$, yes. Value, set by American market.

If anything, for a quality C aircraft, I would price mine higher than comparable US aircraft, to recover some of my time and expense importing into Canada, and that C buyer would not have that expense.

[CpnCrunch]

I have imported several aircraft, and in fact, most aircraft in Canada were at one time imported... Never had any issues.

I was just saying that it takes a certain amount of time, money and effort, and it may not be worth it for a cheap plane.

[CpnCrunch]

Price in C$, yes. Value, set by American market.

The price is set at the time you enter it on controller, so if it's sitting there for 6 months the exchange rate might have moved significantly (unless you change the price).

If anything, for a quality C aircraft, I would price mine higher than comparable US aircraft, to recover some of my time and expense importing into Canada, and that C buyer would not have that expense.

That is certainly a valid point when the exchange rates were equal. However now you might have to reduce the USD price to sell it. It's just supply and demand. I imagine that unless it's a $100k+ bird, most of the buyers will be Canadians, so the sudden 35% increase in price due to the exchange rate is a significant factor.

[Rookie50]

I suppose individual economies come into it.

But bear in mind too, from my observations, (as a buyer a few years ago) -- the supply of quality, clean above entry level GA aircraft in Canada is very limited, so such aircraft will command a strong price, comparable to US pricing, at least.

[armchair]

Here's a great deal! A 1961 Mooney M20B with only 3500 hrs for less than 10K USD!! How to minimize the impact of the exchange rate! You also get to import it from Switzerland! http://www.controller.com/listings/airc ... 0b-mark-21

[redlaser]

I would not buy an aircraft older than 1974, and even that is quite old, There are a lot of planes out there that look like bargains but once you bring them into Canada and try to certify them you'll spend a fortune in time and money, But there again, even recent aircraft could be junk aircraft, so the old rules apply, Buyer Beware.

[Stephen Szikora]

On Bombardier ... the problem is that much of what goes into each aircraft is also priced in $US - from engines to avionics to rivets. The only exchange savings is some of the labour cost (remember, even some of the labour is sourced elsewhere like the wings being built in Belfast.)

On the rest of the thread ... I don't care how they are priced as long as the vendor is clear and reasonable. I see Canadian aircraft listed on Barnstormers, for example, where the currency isn't specified ... not clear. I also see Canadian aircraft that were originally listed in $US two years ago that still haven't sold, yet the vendor seems unwilling to adjust the price for the subsequent difference in exchange rate ... not reasonable.