Aircraft leasing
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Aircraft leasing
I never understood the airline's motives with aircraft leasing. I can understand the initial need for it . . . startups don't have the money, etc. But after a certain amount of time, doesn't the aircraft reimburse the operator? I think airlines should get a sort of rent-to-own type thing going on with the lease companies . . . instead of going into sticky things like lease expiry, replacement, and still paying rent on something when you have exceeded it's original cost if it were yours.
Complicated, but does anybody see my point here? Or am I missing something? Throw some light on this one here, please!
SFly
Complicated, but does anybody see my point here? Or am I missing something? Throw some light on this one here, please!
SFly
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There are a great many reasons why airlines choose to lease aircraft. Aircraft leasing is a growing industry.
To put it in perspective, near enough 50% of British Airways fleet is leased. So why would a self-proclaimed world-class former flag carrier choose to do this?
The reasons are many and complex but include : tax law, greater ability to fix costs, lower cost financing, lower gearing ratios, ability to show a greater return on capital invested, very favourable purchasing terms able to be achieved by the leasing companies etc etc.
It works, and it works very well.
To put it in perspective, near enough 50% of British Airways fleet is leased. So why would a self-proclaimed world-class former flag carrier choose to do this?
The reasons are many and complex but include : tax law, greater ability to fix costs, lower cost financing, lower gearing ratios, ability to show a greater return on capital invested, very favourable purchasing terms able to be achieved by the leasing companies etc etc.
It works, and it works very well.