Just wondering is there any advantage for leasing an aircraft long term? It seems to have no effect on the price. If someone can point out the pros/cons that would be greatly appreciated.
not sure about used aircraft the price might not change, at least not that i've seen but new aircraft are slightly cheaper in long lease.
Hmm if your talking about used market.. then leasing longer means you keep that rate longer..
Basically, everyone time you "renew" a leasing contract.. it goes up. Always.. plane could be 30yrs old.. the montly lease payment will go up once u "re-lease" it.
Though were talking maybe a few extra 1000s of dollars.. but still, after a lease is over and you want to re-lease it.. you'll end up playing a higher-then-before monthly fee.
Now.. if your leasing new. Longer the lease, more of a discount you get and overall cheaper lease. Though, being stuck with an aircraft for 7 years can be a problem. After 7 years... theres almost always better equipment to do the job fast/more efficient ect.. So .. make sure you plan for that. Also, canceling a 7 year contract = millions of dollars.. also keep this in mind. ;)
Hopefully, this helps.