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Aircraft Leasing Industry

Running a business that relies on the use of aircrafts for delivery of goods or for training purposes involves many expenses. Such expenses include the cost of aircraft, licensing fees, operation expenses and of course airport service charges. Due to the heavy costs involved, most businesses opt to lease aircrafts rather than buy their own, freeing themselves from some of the costs. Aircraft leasing has several advantages that small businesses in particular find very beneficial. By leasing, you commit your financial resources that you would otherwise have used in purchasing an aircraft to your business, thereby enabling the business to grow. Australia has a thriving aircraft leasing industry that serves all categories of clients including airlines, government agencies, non-governmental organisations and small businesses.

Since leasing of aircrafts can initially be costly, you have various ways through which you can successfully lease aircraft:

By aircraft leasing firms – Australia has several aircraft-leasing firms that play a very important role in the aircraft leasing industry.

The firms in fact are the backbone of the leasing industry, as they own the aircrafts. The firms have different aircraft leasing plans that suit different categories of clients including airlines and small businesses. Depending on aircraft leasing plan, a lessee can lease an aircraft, effect regular monthly payments and eventually take full control of the aircraft. This involves exchange of the essential documentation pertaining to the leased aircraft. Leasing aircrafts through aircraft leasing firms is the easiest way that you can purchase an aircraft.

Through financial institutions – Australian financial institutions serve the aircraft leasing industry by availing aircraft lease finance to airlines and small businesses that need to lease.

This is essential because the initial lease amount can be huge and small businesses in particular may not be in a position to manage. However, the financial institutions do not provide aircraft leasing finance on their own but through a consortium that they have formed. Such a consortium calculates the rate of interest to be applied on lease finance advanced and split resultant profits through equity arrangements.

Through aircraft leasing brokers – Aircraft leasing brokers have become to be the most sought after businesses by small businesses that need to lease aircrafts. The brokers play a vital role in the aircraft leasing industry by assisting small businesses without the initial capital outlay and do not meet some of the aircraft lease conditions set by financial institutions. The brokers undertake to meet some of the conditions on behalf of small businesses. The brokerage service charge that brokers levy depends on a number of factors, including the amount of work involved.
 
 

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