Wednesday, July 7, 2010

Aircraft Leasing - A Common Technique to Acquire an Aircraft

Aircraft Leasing - A Common Technique to Acquire an Aircraft

By: johnmak
Aircraft leasing has become a common technique to acquire an aircraft, since this asset has become expensive and always subject to a variety of laws and regulations. One of its main advantages is that it assists to settle cost considerably. Aircraft leasing is most common in military aviation. Further, individuals, commercial aviations, pilots, and government agencies utilize use leasing options. Both short term and long term aircraft leasing options are available.


Aircraft leasing transactions are categorized into operating leases and finance leasing. Finance leasing is needed to meet any of these criteria: a lease term greater than 75% of the aircrafts estimated life, option to buy the asset for less than market value, or ownership of this asset to be transferred to the lessee when lease expires.

It is always improved by tax advantages and is shown on the balance sheet of the lessee. Usually, it’s for a long term period. Currently, aircraft leasing is mostly on the basis of this sort of lease. As per to statistics, there are about 12,500 commercial aircrafts in the world, among which approximately 2500 work on operating lease.

It’s always preferable to obtain aircraft leasing services from commercial aircraft sales and leasing. A collective term given to organizations engaged in marketing airliners from manufacturers such as Airbus and Boeing. A countless number of other providers, like commercial banks, hedge funds, and financial institutions, are also in the scenario to make available aircraft leasing services. Of which famous are GE Commercial Aviation Services and International Lease Finance Corporation.

As a part of complete aircraft lease, most render maintenance management including AOG and heavy maintenance functions. There are companies which offer leasing as well as financing packages for new or used commercial or corporate aircrafts. Customized aircraft leasing packages that are designed as per the requirements of the customers are also available nowadays.

Air Charter International offer aircraft lease facility for corporate executives, businessmen, air cargo, passenger travel, and emergency medical evaluation as per their requirements.
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