SofemaOnline takes a look at the pros and cons of aircraft lease options

The acquisition cost of aircraft is a significant undertaking with Boeing & Airbus Narrow Body Jets around the million USD.

Serious discounts are on offer for multiple purchases and with the buying power of the large leasing companies typically able to order aircraft well into double digits the leasing companies are able to generate interesting options for operators whereby the cost of acquisition can be more competitive from a leasing company than going to the manufacturer directly.

Note - Whilst this applies of course to new aircraft and the leasing companies have the added advantage of a portfolio of pre-owned aircraft.

SofemaOnline takes a look at the Purpose of Maintenance Reserves within an Aircraft Leasing Arrangement

Introduction

The concept of Maintenance Reserves is designed to “protect” the Lessor by ensuring funds are available to cover major activities.

Maintenance reserve payments are typically calculated on flight hour, flight cycle, and/or calendar basis and are usually paid on a monthly basis in arrears.

At the time an aircraft is taken out of service for maintenance, the lessor should already have funds to cover the cost of outstanding maintenance.