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Author Topic: How to cancel a lease and return the plane?  (Read 458 times)

Offline LotusAirways

  • Members
  • Posts: 1023
How to cancel a lease and return the plane?
« on: September 09, 2013, 11:45:21 AM »
Say I have leased an airplane for 10 years but after 5 I don't need it any longer. How to cancel a lease contract?
Tks

Offline Infinity

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  • Posts: 1564
    • Aviation Awareness
Re: How to cancel a lease and return the plane?
« Reply #1 on: September 09, 2013, 11:55:14 AM »
Just click on the aircraft, and then under 'Manage Aircraft' you can select 'Terminate Lease'.
This will cost you 50% of all remaining lease payments immediately, so it is only advisable if you don't need the cash for anything more important. It will save money in the long run, but takes a hefty one-time investment, especially for smaller airlines.
Also note that you can only terminate a lease after 10% of it's scheduled duration has passed.

BD

  • Former member
Re: How to cancel a lease and return the plane?
« Reply #2 on: September 09, 2013, 02:22:16 PM »
Just click on the aircraft, and then under 'Manage Aircraft' you can select 'Terminate Lease'.
This will cost you 50% of all remaining lease payments immediately, so it is only advisable if you don't need the cash for anything more important. It will save money in the long run, but takes a hefty one-time investment, especially for smaller airlines.
Also note that you can only terminate a lease after 10% of it's scheduled duration has passed.
When I purchased an aircraft that I had leased new from the factory there was a premium also.  

Is it a similar calculation (i.e. aircraft value plus some percentage - 50%?? - of the remaining lease payments)?

Offline LotusAirways

  • Members
  • Posts: 1023
Re: How to cancel a lease and return the plane?
« Reply #3 on: September 09, 2013, 02:31:33 PM »
Thanks. So it is cheaper to buy and put it for sale (assuming I can find a buyer)?

Offline Mr.HP

  • Members
  • Posts: 2730
Re: How to cancel a lease and return the plane?
« Reply #4 on: September 09, 2013, 02:45:21 PM »
When I purchased an aircraft that I had leased new from the factory there was a premium also.  

Is it a similar calculation (i.e. aircraft value plus some percentage - 50%?? - of the remaining lease payments)?

Yes. Same calculation. You will have to pay 50% of the remaining leasing amount plus the value of the A/C to purchase it

So, if you're not sure, then don't make long lease

Thanks. So it is cheaper to buy and put it for sale (assuming I can find a buyer)?

Only if it is a popular model, you can lease out with as much as 40% premium

 

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