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.

It is always preferable to acquire aircraft leasing services from Commercial Aircraft Sales and Leasing ? a collective term given to organizations engaged in marketing airliners from manufacturers such as Boeing and Airbus. A countless number of other providers, such as commercial banks, financial institutions, and hedge funds, are also in the scenario to make available aircraft leasing services. Of which prominent are GE Commercial Aviation Services (GECAS) and International Lease Finance Corporation (ILFC).

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.


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