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 aircrafts in the world, among which about 2500 work on operating lease.

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 aircrafts. Customized aircraft leasing packages that are designed according to the needs of the clients are also available nowadays.

Can Leasing Aircraft the Alternative to Jet Charter?

When it comes to obtaining an aircraft for your tours and travels, you will have several options before you.  You may go for the traditional jet charter or you may go for the lease if purchasing outright is beyond your capability. Leasing however, has several aspects and you will have take into account various factors before you go for the lease.  Such issues do not occur in case where you are going for private jet charter by obtaining jet charter quotes.  The lease is something quite different from the occasional charter where you reserve a seat or a few seats for your journey one way or to and fro.

Aircraft lease –

In case of lease of the aircraft the whole craft is leased out by the lesser to the lessee.  Whereas in jet charters you only get the occupancy of the seats for particular destinations, here you get the full craft at your disposal for a fixed time span.  In return you pay the lesser the agreed rate for the month.

There are multiple companies who will allow you lease of their aircraft for a certain payment.  Some of them have very large collection of divergent aircraft.  These providers will normally provide you with all required information and the equipments to enable you deciding whether leasing is the right option for you or not. The process is the same for lease of passenger aircraft or cargo ships.

Basic principles of leasing –

Ordinarily it is always the commercial regional aircraft and various types of planes that are leased out.  However the principles underlying the lease are common in most cases. The process of acquiring aircraft by lease is different from the jet charter process and the newcomer to aviation system may find it difficult to follow up everything suitably.  Therefore it may be pertinent for them knowing the decision making process for leasing aircrafts.  They would do well to obtain the guidance and services of some aviation specialist who could guide you through the entire process smoothly.

These specialists are well versed in the trade of aircraft leasing.  They will guide you with topics including the options you have in leasing the aircraft, the requirements of the lesser, and also comparison between various types of leases.  For example the ad hoc lease and the full charter programs would be completely different from outright purchase of the aircraft. One basic question before you would be whether to lease and aircraft or go for the jet charter. The next question would be the source of the aircraft to be procured on lease.

Do not get confused –

Aircraft leasing is a bit complicated process and there is every chance of your becoming confused since there are various types of leasing options open before you.  For example, there are the ACMI lease, Dry lease, Wet lease and Damp lease.  ACMI refers to the four most important aspects of aviation namely A for Aircraft, C for Crew, M for Maintenance, and I for Insurance. Wet lease is one where the aircraft is leased with fuel, damp lease is the one where aircraft is with fuel but without cabin crew and dry lease is one where you are leased the aircraft without fuel.  As ultimate decision maker it is your option to choose the best one among them.