Finance, Taxes, Insurance
Jetalliance offers new kind of aircraft lease
Austrian-based operator Jetalliance announced here on Tuesday that it is now offering what it claims to be a new kind of business aircraft financing called

Austrian-based operator Jetalliance announced here on Tuesday that it is now offering what it claims to be a new kind of business aircraft financing called asset-based leasing. Under the scheme, a firm or individual agrees to make a down payment for part of an aircraft–say, 30 percent. Jetalliance then buys the aircraft from the manufacturer. It will then own the remaining 70 percent.

Both owners’ equities are in fact held in a single-purpose company (SPC). Technically, the latter is the actual aircraft’s owner. Jetalliance’s customer will have to pay a monthly lease rate. Hopefully, chartering out the aircraft will reduce or offset the lease rate, Christian Lang, JA Asset Based Leasing manager, explained to EBACE Convention News. Charter income goes into the SPC.

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