Getting Started With Aircraft Equipment Leasing

Getting Started With Aircraft Equipment Leasing

Since aircraft have been invented, we have become fascinated with flying. Not only that, it is now an everyday part of our lives. A lot of people fly for their work and almost everybody has flown in some way at some time in their lives. With the invention of high speed airplanes, you can go a long way in such a short period of time. For example, one can fly from London to Germany in under 2 hours, with some people commuting this way in a day for their jobs. This kind of air travel was once never dreamed of. Aircraft also have many other uses such as emergency helicopters and 4 seater light airplanes that can be owned simply for personal use.

There is a really wide variety of aircraft out there now. From helicopters, 6 or 4 seater light airplanes, all different sizes of jets, giro copters, ultralights and old style airplanes. The air force in most countries, have a wide range of different machines now as well. They have large helicopters, smaller helicopters and fighter jets. With such a large variety, it is very common for people not being able to afford the cost of running them.

The high costs involved with the aircraft sector are diverse. We all know how expensive fuel has become in recent years for our cars and vehicles on the road. Aviation fuel is as expensive, if not more expensive, because it needs to be really clean and good quality to meet safety standards and for obvious risk reducing factors. Other costs involve servicing a flying machine. Light planes generally require the least amount of maintenance but when it comes to helicopters or jets it becomes expensive. The safety regulations requiring short periodic service often add up to quite a lot.

Due to these factors, leasing aircraft is becoming much more popular and it also makes sense. Whether you are a company or individual, leasing flying machines is a good option to take. If you need an aeroplane only for a certain period of time it is much cheaper to lease one that renting or buying one. For companies needing many aircraft, you have to lease them because you simply can't afford the costs of buying all of them. The advantage of leasing them is you don't have the affects of asset depreciation when the aircraft drops in value as with a car or motorbike. Leasing also reduces the costs of major repairs due to warranties and also general service costs.

Leasing is definitely very effective when it comes to aircraft. It has the great financial advantages along with tax advantages in most countries. For aircraft such as helicopters, which are worth a lot of money and require a lot or maintenance, leasing is a top option. For people and businesses looking to get started or continue possessing aircraft, leasing is greatly advantageous.

Purchasing Or Leasing A Private Jet Aircraft

Purchasing Or Leasing A Private Jet Aircraft

The commercial airline industry is well aware of the effects of stricter Homeland Security Regulations on their first class passenger industry. Rather than wait in stocking feet with four to five plastic buckets in hand, many first class passengers are choosing to purchase or lease their own jet aircraft. This is having a huge impact on their bottom line. Private jet sales may seem pricey, but for the companies that send multiple parties on weekly international or cross country flights purchasing a jet in either full or partial ownership can actually save money long-term. Private jets are the alternative to long lines, delayed flights, and rerouting. If you are looking to purchase or lease a private jet then contact a jet broker today.

A jet broker can explain all of your options in full, providing you with costing for new versus used jets, full versus part ownership, and even provide you with access to charter companies. Jet brokers will walk you through your requirements and cross-reference them to available jets that they are licensed and empowered to broker. They will be able to tell you about the maintenance performed on a particular craft, its reliability, and previous ownership. Jet brokers will work with you to negotiate terms with the seller and even help you to procure financing and insurance.

Working with a jet broker like L&L International takes the guesswork out of buying a big ticket item like a jet. You are no longer alone in the decision making process. Jet brokers act as consultants, guiding you every step of the way. In many cases they have extensive knowledge of the seller and can help to resolve any issues that may arise in the purchase process.

Buying a jet is a huge decision, one that is best considered from every rational and knowledgeable perspective. When it is a business investment all aspects of the purchase will be scrutinized and therefore seeking the assistance of a subject matter expert will provide added due diligence to the process. At the end of the day you want to be able to enjoy the purchase, not stress over it. Leaving the purchase in the hands of the jet broker allows you to sit back and enjoy the ride.

Aircraft Leasing

Aircraft Leasing

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 prime advantages is that it helps to defray cost considerably. Leasing aircraft is most common in military aviation. Further, individuals, pilots, commercial aviations, and government agencies utilize leasing options. Both short term and long term aircraft leasing options are available.

Aircraft leasing transactions are categorized into finance leasing and operating leases. Finance lease is required to meet any of these criteria: a lease term greater than 75% of the aircraft?s estimated life, option to purchase the asset for less than fair market value, or ownership of the asset to be transferred to the lessee when lease expires. It is always enhanced by tax benefits and is shown on the balance sheet of the lessee. Generally, it is for a long term period. On the other hand, an operating lease is usually signed for a short term period. Presently, aircraft leasing is mostly on the basis of this type of lease. According to statistics, there are about 12500 commercial aircraft in the world, among which about 2500 work on operating lease.

It is always preferable to acquire aircraft leasing services from Commercial Aircraft Sales and Leasing ? a collective term given to organizations engaged in marketing airliners from manufacturers such as Boeing and Airbus. A countless number of other providers, such as commercial banks, financial institutions, and hedge funds, are also in the scenario to make available aircraft leasing services. Of which prominent are GE Commercial Aviation Services (GECAS) and International Lease Finance Corporation (ILFC).

As part of full service lease, most render maintenance management including AOG and heavy maintenance functions. Besides, companies like CIT Group Inc. offer leasing as well as financing packages for new and used commercial and corporate aircraft. Customized aircraft leasing packages that are designed according to the needs of the clients are also available nowadays.

Air Charter and Wet Lease Aircraft Leasing

Air Charter and Wet Lease Aircraft Leasing

The final chapter in the Airbus A310 story. The production line remains technically open but the aircraft has been largely superseded, such is the march of progress. The final manoeuvres are sad and on the wrong side of profitability.

Cameroon Airlines wet lease an A310-300 from Air Plus Comet in November 1997. It had planned to use it throughout the winter season until the following March, but returned the aircraft on 5 December. On the other side of the African continent, a restructured Air Djibouti began operations with a leased A310-200 on 25 July 1998, serving its main links between Djibouti and Addis Ababa, Cairo, Dar-es-Salaam, Dubai, Jeddah, Johannesburg, Karachi, Khartoum, Mogadishu, Mombasa, Muscat, Nairobi and Rome. The aircraft was returned to Airbus Industrie Financial Services in February 1999.

Egyptian start-up Heliopolis Airlines operated an A310-200 from Airbus Industrie Financial Services in October 1997, but a fall-off in tourist traffic hit the airline hard and the Airbus was repossessed on 30 June 1998. Tunis Air, already an A300 operator, leased an A310-300 from Royal Jordanian between 30 August and 30 September 1991.

Qatar Airways, formed in direct competition with its own national airline Gulf Air, began operations on 20 January 1994, initially using a single ex-Kuwait Airways Pratt & Whitney powered A310-200 leased from the manufacturer. A second ex-Kuwait Airways model followed in June 1994. A network was established linking Qatar's capital Doha with London and several destinations in East Africa and the Indian subcontinent. As services grew, the airline needed larger aircraft and the A310s were returned in February and May 1995. Another local carrier Oman Air has revamped its operations with two exSwissair A310-300s, which entered service in April 1999 on longer sectors from Muscat to the Indian sub-continent. New services to southern Europe and East Africa are being planned.

Luxembourg-based newcomer Solid'air was due to begin operations in spring 1999 with two A310-300s, configured for 232 passengers in a two-class cabin of 28 business and 204 economy seats. Both aircraft are on lease from Lufthansa for a period of five years for planned charter services from Luxembourg to Orlando and Fort Lauderdale in Florida, and to the Bahamas and Dominican Republic. Other Central American and Caribbean destinations will be added.

Airbus built a total of 261 of these aircraft over a 15 year period.