OPERATING LEASE
Aircraft Operating Lease
An operating lease is a great way to grow your fleet to meet customer demand with minimal capital outlay and reduced asset residual risk.
The operating lease includes a fixed monthly rental payment for a specified period and a nose-to-tail maintenance program for the aircraft. The maintenance program is fully customizable to ensure operating targets and is payable per hour flown which coincides with the operator's charter revenues.
At the end of the operating lease, the operator gives the aircraft back to Jet Bank without residual value exposure or the constraint to further monetize the asset though a sale.
Allocation of Capital
The large down payment of an aircraft purchase or a financial lease scenario is replaced by a security deposit which is reimbursable at the end of the operating lease.
The operator will have reduced risks and predictable monthly expenses while off-loading all future market value exposure to the lessor in exchange for a fixed set of lease payments that will not change over time.
More Efficient Tax Treatment & Greater Privacy
Rents under an Operating Lease are an efficient, long term tax-deductible expense. An Operating Lease is secured only by the aircraft and does not require additional asset securities.
An Operating Lease reduces visibility to an aircraft’s end user, as the public records of the FAA would identify Jet Bank as the owner of the aircraft.
