Action Steps
The best contacts and resources to help you get it done

Learn what's involved with leasing an aircraft or buying a commercial aircraft

Leasing an aircraft takes more knowledge and legwork than leasing a car, so before you jump in and makes sense to know what's involved in operating, leasing, and/or owning an airplane. You can talk to other businesses who lease or own aircraft, check out trade journals, and, of course, do your own web research about leasing or buying a commercial aircraft.

I recommend: Read about the pros and cons of aircraft leasing at Conklin & de Decker's website. You should familiarize yourself with the language of commercial aircraft sales and leasing. Euromoney Institutional Investor publishes Air Finance Journal which has a good basic glossary online.

Investigate aircraft leasing companies

Talking to an aircraft leasing company can give you an idea of what's involved in leasing a commercial aircraft. Leasing a commercial aircraft instead of buying one makes fiscal sense for many businesses, but different companies have different leasing programs, so it pays to investigate all your leasing options.

I recommend: Take a look at aircraft available through aircraft leasing companies at Pilotmarket.com. JetLease breaks down the different lease programs it offers customers so you can see which one makes the most sense for your business before you start shopping.

Talk to a commercial aircraft brokerage about buying a commercial aircraft

Businesses and pilots all over the world have commercial aircrafts for sale, and a good commercial aircraft brokerage can help you find the right aircraft for your business.

I recommend: Thirty Thousand Feet maintains a descriptive list of commercial aircraft brokers. Marc Coan's Sky Machines, a flat-fee commercial aircraft brokerage, explains in detail how their brokerage functions so the buyer has no surprises.

Helpful advice for making the most of this Guide

• •  Have an attorney review any aircraft lease you're considering signing.
• •  Don't discount the idea of purchasing used commercial aircraft. Used planes aren't like used cars and the seller or lessor should provide aircraft, engine and propeller logs that thoroughly detail the history and maintenance of the aircraft.

Guide to Commercial Aircraft Sales and Leasing

Brokers help you navigate the purchase and leasing of used commercial aircraft

By Amy Jo Garner

1. Find a broker with extensive contacts with lenders.
2. For fleets, use commercial aircraft brokers who can provide flexible operating leases.
3. Work with brokers with experience who conduct a dozen or more transactions each year.
4. If you don't or can't do your own maintenance, stick with aircraft leasing companies offering "wet" or ACMI (aircraft, crew, maintenance and insurance) commercial aircraft leasing.

Action Steps
The best contacts and resources to help you get it done

Count on the experience and international contacts of large commercial aircraft leasing firms

The largest of the CASL brokers provide the most comprehensive services, including commercial aircrafts for sale, but may not be the best choice for businesses looking to buy or lease a single aircraft.

I recommend: GE Commercial Aviation Services handles large transactions for commercial Boeing and Airbus passenger jets. International Lease Finance Corporation also handles leasing for small and start-up airlines. AWAS provides "dry" lease (no crew, insurance, etc.) and sale and leaseback options.

Look to smaller CASL brokers for purchasing and leasing business or private jets

Although smaller commercial aircraft sales and leasing firms don't deal in the same volume as larger ones, they provide the services needed by small businesses. These companies often deal in both jet and turbo-prop commercial aircrafts for sale.

I recommend: Gantt Aviation negotiates several dozen transactions a year and has the necessary industry knowledge and contacts. O'Gara Aviation Company buys and sells aircraft suitable as private and business jets.

Consider alternative leasing and ownership options

Some companies gear their services for the business traveler. If you want to avoid the high costs of owning or leasing commercial aircraft, consider options such as fractional jet ownership.

I recommend: Netjets pioneered the idea of fractional jet ownership. XOJET provides additional options for the business and private jet customer.

Helpful advice for making the most of this Guide

• •  If you don't understand the terminology used by your commercial aircraft sales and leasing broker, ask for an explanation. You could lose money in the transaction if you don't know what you're agreeing to.

Action Steps
The best contacts and resources to help you get it done

Find out what costs your company the least: purchasing a plane or commercial aircraft leasing

When a business buys a plane it receives certain tax breaks as the plane depreciates. But if a business doesn't plan to use a plane in the long term, then aircraft leasing may make more sense. Investigate the cost of both and read up on the advantages of leasing and buying, and then sit down and work out the numbers.

I recommend: AirplaneDepreciation.com makes a strong argument for purchasing an airplane while AirplaneBuy.com makes some interesting points about aircraft leasing and renting.

Discover whether commercial aircraft brokers will save you money

Once you've decided whether your business will lease an aircraft or buy one you'll need to decide how you're going to do either. Whether you're buying or leasing you have two choices here: you can try and do it yourself or you can use commercial aircraft brokers.

I recommend: If you plan to lease an aircraft, then talk to at least one aircraft leasing company; ideally you should talk to two or three to compare fees and services. Thirty Thousand Feet maintains a comprehensive list of aircraft leasing companies. If it makes more sense for your business to buy a plane, then interview a commercial aircraft brokerage. Again, you should talk to no less than two, preferably three. Members of the Aircraft Brokers Association International adhere to the same code of ethics; consider talking to one or more of their commercial aircraft brokers.

Decide if your business will consider used commercial aircraft

When buying or leasing an aircraft, don't discount used commercial aircraft. Well-maintained airplanes come with detailed maintenance logs so it's easier to see what you're getting than when you buy a used car. Here's where a commercial aircraft brokerage or aircraft leasing company might help your business save money and time.

I recommend: If you've decided to use a commercial aircraft brokerage or aircraft leasing company, then ask them about buying or leasing a used commercial aircraft. Do your own homework as well: check out used commercial aircraft at AeroTrader.com, from Dominion Enterprises, and at SkyQuest International.

Helpful advice for making the most of this Guide

• •  Have an attorney look over any aircraft lease before you sign it. It doesn't matter if you feel good about the company or think you know what to look for; an attorney can protect your business and save you potential expenses and headaches down the road.

Action Steps
The best contacts and resources to help you get it done

Bargain purchase option, bargain purchase

A bargain purchase option, otherwise called bargain purchase, is when the lessee, which is usually an airline company, is given the right to purchase an airplane a rate that is lower than the expected market value for that aircraft.

I recommend: El Camino Resources International can give you helpful leasing and bargain purchase information. Scroll down to the glossary section for more details. Read literature from Leasing News, though, to make sure that your transaction passes legal, income tax and accounting standards.

Wet lease, ACMI lease

A wet lease, or ACMI (aircraft, crew, maintenance and insurance) lease is when you don't or cannot do your own maintenance.

I recommend: Find a fuller definition on wet leasing from GlobalPlaneSearch.com. AirCharter World also offers some additional brief information.

Dry lease

An aircraft dry lease is one that does not include insurances, crew or maintenance. Two types of dry lease include an operating lease and a finance lease.

I recommend: Look at the dry lease information from Logistic Air.

Accelerated depreciation

Accelerated depreciation of an aircraft is when the depreciation is higher than the normal rate, usually done for tax purposes.

I recommend: Find out more about accelerated depreciation of aircrafts from Beacon Aerocredit.

AOG, off-lease

Aircraft on ground (AOG), sometimes called off-lease, is the time period when the aircraft is grounded for reasons such as repairs or refurbishments.

I recommend: Look at the off-lease inspection information from Aircraft Investment Group.

Engine exchange

Engine exchange is a service that engine manufacturers and lessors offer where airlines and lessees can swap out engines needing repair for ones that have already been overhauled.

I recommend: Check out the engine exchanging going on at Don George Aircraft Engines & Parts.