What are the advantages of Leasing versus Financing (or Purchasing with Cash)?

•  Leases are off-balance sheet transactions. Monthly lease payments are typically treated as expenses.

•  A lease may have tax advantages for the lessee. Check with your attorney or tax accountant to see if leasing is your best option.

•  Less money is required up-front. Most lenders require at least ten percent down to finance an aircraft purchase. With a lease, the company does not have to allocate capital to an asset that does not generate income. Leveraged purchases can reduce a company's borrowing power for other opportunities.

•  The lessee can more easily upgrade to another aircraft as their needs change.

•  The lessor takes market value risk so that if the market drops, the lessor (and not the lessee) loses.

•  At the end of the lease, the lessee can walk away, renew, or in many cases purchase the aircraft.