I think we need to introduce this kind of leasing now......now we can only make operational leasing, that means the leasing cost we are paying now is only to maintain the right of usage of the plane, which is very bad for airline's operating, especially small airlines due to less income and resource to handle anything wrong or the hit from big airlines.
here is the detail I suggest:
1. available to both new and used aircraft, the length of the payment will be the same as those operational leasing on new aircraft (5-14 years)
2. the monthly payment is counted according to the price of the plane+interest for the lessor, something like this:
price of the plane+no. of months*(1+interest rate)
use a new 333(GE CF-6, +5.0 tn MTOW) in MT5 as example, interest rate=7.25%, leasing time=7 years/84months:
174 088 640/84*(1+7.25%)=2222739
the cost at MT5 now is 2203660
3. shorter the payment, lower the interest rate (due to lower risk and get back the cash faster); can consider adding extra margin interest if the credit rating is lower than a level e.g. B
4. after the end of payment the plane will belong to the airline; airline can choose paying rest of the payment+the interest needed to pay at once and get the ownership of the plane immediately
5. Finance leasing cannot be ended and return to the lessor, if you cannot make the payment the lessor can claim the plane back
what do you all thing of this?