Finance Range Domestic: $150,000 - $750 Million (Includes Caribbean, Mexico, Brazil, Australia, Canada and most Countries) per Aircraft
Finance Range Elsewhere: $1.5 Million (prefer $2.5 Million) - $750 Million per Aircraft
Typical Interest Rates: From 4.5%
Typical Finance Term: 5-10 years
Payment Amortization: Up to 20 years
A lender buys the aircraft and leases it to you the lessee which makes the lender a lessor. If you do not require the lender to provide a crew and pilot, it is an Operating "Dry Lease". Should you require a crew and pilot as a lease item, it will then be a "Wet Lease". Under Financial Accounting Standards Board (FASB) Operating Leases are not required to be shown on the balance sheet of the lessee. This allows the lessee to obtain a better financial profile for reporting purposes, but retain access to valuable equipment, such as corporate or flight training aircraft.
Tax exempt government lease purchase and other financing for all types of municipal, state and county customers.
A leasing package wherein the lessee sells presently-owned equipment to the lessor to convert fixed asset into cash with the lessor allowing the lessee to retain the full use of the property for a fee over a specified period of time. Same as Operating Lease except the lender buys the aircraft from you and lease it back to you.
A leasing arrangement where lessor and lessee are situated in different countries. This presents significant additional issues related to tax avoidance and tax shelters. Situations commonly used in some European countries, to arbitrage the difference in the tax laws of different jurisdictions, usually between a European country and the United States.
A Capital Lease refers to a transaction where the lessee possess substantive economic ownership and benefits of the leased asset during the lease period and records it as a balance sheet item.
A leasing package wherein the lessor buys a specified equipment from the supplier and leases the same to the lessee.
Lessor provides the Aircraft, Crew, Aircraft maintenance and Insurance). Lessee pays for everything else for a lease term of 12 to 120 months.
Shariah, or Islamic law, prevents lenders from charging interest. The main Islamic aircraft finance technique is Ijara or leasing. The Ijara-wa-Iqtina (lease and ownership through a Trust) process allows Muslims to create a lease-to-own agreement in which the Aircraft’s operator becomes a lessee, thus abiding by Sharia principles.
This is a bonds that airlines issue to pay for an aircraft through an SPV(Special Purpose Vehicle which is a Corporation) owned by the airline. An investor buy bonds from the SPV and the SPV uses the invested capital to purchase the Aircraft and leases it to the airline.