SEEKING A STAGE III PAX BOEING 727 TO LEASE

I am in the process of creating a new airline venture in New Zealand offering tourist flights to & from Australia. I am frankly capital poor but do have backers prepared to finance the acquisition of an AOC from NZCAA. I also have tour operators prepared to place bookings with me. 

Given the runways involved and distances required to fly, a Boeing 727-100 or 727-100C are most suited to my needs and finances. National sovereignty rules preclude offering shares in the airline venture itself to offshore nationals, but I am offering a 3 year dry lease worth US$8m for any individual or group of individuals interested in providing a Stage 3, Boeing 727-100 pax aircraft post C-check, painted in my livery, pax equipped to my specs, with TCAS II. I expect the all up cost of such an aircraft is around US$1m. The advantage of this arrangement is that offshore investors could still share in the venture's profitability without the risks of airline ownership.

Under modified terms I would also look at a similar deal for a 727-200RE but obviously with higher remuneration for the owner(s).

The NZ tourist market has grown by an average 7% annually for decades, but has slowed to 2% during recent oil shocks. Even given the high fuel consumption of a B727-100, my investigations reveal a lower block hour fixed cost than competitors. Put bluntly I expect to be able to undercut existing operators. I have pledges of support from existing tour operators who are looking for an alternate airline service. I expect utilisation of 80 hours per week, 50 weeks per year.  

Obviously the whole deal is conditional upon my first gaining the appropriate NZ AOC. Investors would also be eligible for NZ permanent resident status as business migrant investors. The opportunity may appeal to persons who wish to settle in this country or maintain a holiday home in New Zealand. For this category there is a minimum threshold of personal investment required by the NZ government.

In terms of a return on investment, I hardly need point out the return on investment is superior, but not without risks.

This information provided in my post does not constitute a full disclosure or financial statement of the projected venture, but does provide the basics. Gaining an AOC is a difficult project likely to take 6-9 months. I welcome interest from anyone with relevant aviation skills (ie airline Ops management, engineering management, ATPL etc) who wishes to contribute and ultimately participate.

Anybody interested to pursue the aircraft leasing offer further should contact me directly in New Zealand preferably in writing. I would be glad to hear from you and explain in more detail.

S. Gunson
75 Monorgan Rd 
Wellington 6003 
New Zealand
ph/fax +64 4 9737800