Plane Lease CostCosts of the aircraft rental agreement
This information is based on real transaction data and fair value measurements and is up to date as of February 2017.
Yes, you can really rent a plane.
It has been the dreams of many and the prerogative of the wealthy to travel the globe in a personal plane for generation after generation. If you think of those folks who can easily manage to get on a personal plane, think of folks with big reputations like Warren Buffet, Bill Gates and Steve Jobs.
However, the reality is that it no longer takes a quadrillionaire to fly a personal plane. Whilst it is not something the ordinary Joe who works for a locally based company can buy, the airplane lease or personal plane rental sector is becoming more and more economic.
However, the key questions are why and how would you rent a plane? Plane leasing: There are many possible uses for aeroplane charter. During the 1970s, individuals hired planes for the purpose of reducing taxes, but today companies avoid the cost of ownership of an aeroplane through charter. Lots of rental companies will offer full services and full-hangar space to operate the plane.
Unfortunately, it is not as easy to lease an aeroplane as it is to lease a home. The landlord will pay the installer for renting a home when the hotter is out. It'?s not the same with plane lease. Kingfisher Airlines' insolvency is a good example of what happens when planes are rented but not supplied while in the custody of a lessor.
ILFC, the Kingfisher rental firm, was unable to recover its aircraft due to a lack of important parts and the deterioration of some aircraft. If you know that the aircraft you are renting is getting older, you can cancel the lease as long as you have taken care of the car and upgraded to a better, more fuel-efficient one.
That is one of the key motivations why large carriers lease instead of owning their own aircraft. What would it cost to arm an entire squadron of planes? If every plane cost about 194 million dollars and has a total of about 950 planes, that's 1,084,300,000 dollars. Obviously this would be balanced if they could resell their aircraft, but then they would be committed to the markets.
Here, too, carriers operate with equity, and if all their equity is locked up in their fleets, they could never grow. A further aircraft lease system used by large carriers is sales and lease back. This is a way in which an air carrier buys an aircraft it own, resells it to a lessee and then rents back the same aircraft.
Kingfisher Airlines also recognizes that lease reduces the risks of property ownership. The American Airlines seems to have taken a page from the Kingfisher book, but with a better shape. As they went broke, they just ripped the lease and returned the planes.
Plane leasing: I' m not an air carrier, and I' m not interested in renting a whole squadron of planes. It has been mentioned that in recent years it has become much more accessible to lease an airplane or own a personal plane. Rather than lease an airplane as a whole, some companies will lease or split shares in an airplane.
Sharing is like your usual timesharing, except with a much smaller group of you. The amount of rental or owning your own space will depend on your input. When you have a 50% interest in the lease or property, you can have 400 flying hrs, and when you have a 1/16 interest, you have fifty flying hrs.
Remember all the obstacles you would have avoided if you had ensured your stay in a plane every year. No need to worry about TSA routes or check your pockets or tight seats in a tight aircraft. Most of the times you have to cope with a congested airfield, even if you are flying first-class.
Do you know that you have greater flights to more destinations with a personal aircraft than with an airliner? It could help you safe your long journeys from the terminal to your final destinations. And as long as you are in contact with the individuals or other companies with whom you are sharing the lease, last-minute trips all of a sudden go unpunished.
This is another thing to consider when renting or operating an airplane. That might seem evident and superfluous, but think about it: if something is conceived to occupy as little floor space and as much space as possible, it will actually need more service the longer it remains on the floor.
It is more likely that the aircraft will be in the skies for a longer period of stay when leased together. As a result, the amount of servicing and repairs required is minimised over the course of the years. Regardless of why you want to use your personal flight, the benefit outweighs the cost in many ways. Keep in mind that you no longer have to be a millionaire to take full benefit of your own personal aviation.
If you are not able to lease or own an airplane, even divided, there may still be possibilities. If you are looking for a time-saving and immediate alternative, choose an airline to get you there more quickly and effectively.