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Why is leasing so common for aircraft?



Leasing is really common for aircraft operations because aircraft are high liability items, and we always want to be very careful about who is in operational control of the aircraft. The FAA tells us that as well, that is, there is different levels of safety regulation on aircraft depending on whether or not the FAA believes that you’re trying to sell air transportation services. Leasing vehicles allow us to own the aircraft in a single purpose LLC, and isolate out different operators, so that if one operator when using the aircraft has an incident every other operator may not be implicated because we can clearly find who’s in operational control through the lease. For larger aircraft, Truth-in-Leasing provisions promulgated by the FAA require the existence of a written lease whenever an operator besides the owner is going to be in control of the aircraft.

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