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Thursday, February 08, 2007

Leasing of Aircraft

An aircraft is one asset that is very difficult to own. First there is the problem of high cost. So, regular upgradation is difficult. Secondly, aircraft are also subject to a variety of laws and regulations which make it all the more difficult to own one. But leasing of aircraft is a wonderful solution. By leasing, you will be able to preserve your capital and there will be no strain on your budget.

There are two types of aircraft leases: Finance Leases and Operating Leases. Finance leases are generally for a long term period. They should compulsarily meet any of these criteria:
  • The lease term is more than 75% of the aircraft's estimated life.
  • Availability of option to purchase the asset for a cost lower than the fair market value.
  • On expiry of the lease, ownership of the asset will be transferred to the lessee.

    Operating leases are generally signed for a short term period. Most of the aircraft leases are based on operating leases. In fact, about one-fifth of all the commercial aircraft in the world are obtained through operating leases.

    Aircraft leasing is most commonly made use of in military aviation. Commercial Aircraft Sales and Leasing, Commercial Banks, Financial institutions and hedge funds render aircraft leasing services. Aircraft leases can be both short term and long term. Customized aircraft leasing services can also be provided to meet the needs of individual clients.

    For any type of aircraft leasing, do consider the Graphic Savings Group. Our other leasing services include equipment leasing, medical equipment leasing, copier leasing, start up leasing and business leasing.
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