Investments Of Airplane Leasing : A Type Of Leasing Essays

853 Words Nov 15th, 2016 4 Pages
Investments in Airplane Leasing
What is it? - A type of leasing by which a lessor allows a lessee to lease an airplane and/or a combination of flight crew, ground crew, fuel, maintenance, and other flight-related necessities
Generally used as a:
Means for airlines to meet higher demands in the market or volumes of customers
Means for airlines to avoid financial burden of purchasing aircraft
Return on investment for airplane leasing is usually in the 12-15% range
Having assets and liabilities worth >$10 million is not uncommon, and larger leasing investors can easily control aircraft worth more than $100 million.
Types - Airplane leases usually occur in the “wet”, “dry”, and “damp” varieties.
Wet leases are leases in which the lessor provides almost, if not, everything to the lessee, including insurance, crew, maintenance, etc.
Shorter term
Utilized by governments and private corporations
Governments will use west leases access countries where said government is banned.
Dry leases are leases in which the lessee self-provides most of the flying necessities such as fuel, crew, etc.
Longer term
Some airlines will continuously renew dry leases to avoid purchase
Damp leases are leases in which the lessor provides everything (similarly to a wet lease) except the cabin crew.
How to invest - Overall, investing is fairly straightforward. Below are basic steps to follow when investing in airplanes.
Acquire capital: In addition to loans, savings, cash, etc, co-ownership of…

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