Aircraft Leasing

Aircraft Leasing is a common term in international trade and international aviation finance. It refers to a transaction arrangement in which a lessee (an airline or operator) obtains the right to use an aircraft by paying rent to a lessor (a leasing company, bank, or manufacturer), rather than purchasing ownership of the aircraft. It is mainly divided into Operating Lease and Finance Lease: the former has a shorter lease term and higher rent, with the residual value risk borne by the lessor, suitable for temporary capacity supplementation or trial operation of aircraft types; the latter has a lease term close to the aircraft's economic life, with total rent covering the aircraft cost plus financing return, and the lessee often has a priority purchase right at expiry, essentially being installment purchase. Use scenarios include airlines introducing fleets, cross-border aircraft asset allocation, and combining export credit with leasing. Notes: it is necessary to clarify the rent structure (fixed/floating), maintenance reserves, return conditions, insurance and tax arrangements; cross-border leasing also involves international interest registration under the Cape Town Convention, withholding tax, and customs supervision. Compared with direct purchase, leasing can reduce an airline's initial capital expenditure and optimize the balance sheet; unlike Charter, leasing transfers the right to use the aircraft rather than a single voyage transportation service.