Aircraft leasing
Leasing is the preferred choice for clients needing to satisfy significant demand requirements, especially when the mission profile is expected to remain relatively stable. Ownership can also be the right solution even for clients with lower utilisation requirements if the aircraft is placed under management.
ABA can lease certain of its aircraft - you will find the specifications will show basic lease terms for those we can lease. Leases are subject to Lessee financial standing and are normally confined to the UK or EU since we need to keep control of our asset.
Pro's & Con's The benefits include: low initial costs, monthly payments lower than HP, franking lease costs against profits, off balance-sheet accounting and no residual value risk with which to contend. Long-term leasing gives you the mobility you need while preserving capital for other investments. In addition, the residual value risk is taken by the Lessor. The main disadvantage is that you do not own the aircraft depending on accounting policy this can either be beneficial or otherwise. The rental covers Lessors profit, cost of capital, depreciation and the risk on residual value. What is an "operating lease"? An agreement whereby the Lessor will rent an aircraft to the Lessee and repossess the aircraft at the end of the lease term. Throughout the lease term the aircraft remains the sole property of the Lessor. |
LEASE BASICS
The lease agreement - drawn up incorporating the outline provisions below. ABA will supply the initial document; thereafter all legal costs for negociating or any changes are payable by the Lessee. A Terms & Monthly Rental are agreed. ABA's minimum term is three years. Rentals are payable monthly in advance. Security deposit - payable and returned at the end providing no defaults exist. The deposit is usually three times the monthly rental. Operate as if you own the aircraft - whilst this is not the case, provided you comply with the basic and practical rules of the lease, you operate just as if the aircraft was yours. As such you are responsible for all maintenance, insurance, upkeep, etc. In fact everything you would cover if you owned the aircraft yourself. "Reserves" - they are an hourly non profit contribution to scheduled maintenance on engine(s), airframe and propeller(s). Default clauses - you must operate, insure, maintain and keep the aircraft properly and must pay us and others on time. If not then a condition of default may exist which, if you cannot cure, may result in the aircraft being repossessed with resultant penalties. |
ABA's lease back option
Entirely at the discretion of our clients, it is aimed at customers who do not demand exlusive use of their newly purchased aircraft and would be happy to see third party utilisation. Through both Lyddair and WEA we are able to utilise your aircraft when you are not usinf it yourself. In fact, if you requested ABA to manage your aircraft then when you fly you will be flown by our professional pilots who are continuously tested to the strict airline safety standards.
Entirely at the discretion of our clients, it is aimed at customers who do not demand exlusive use of their newly purchased aircraft and would be happy to see third party utilisation. Through both Lyddair and WEA we are able to utilise your aircraft when you are not usinf it yourself. In fact, if you requested ABA to manage your aircraft then when you fly you will be flown by our professional pilots who are continuously tested to the strict airline safety standards.
