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
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.
Quote from: saftfrucht 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.
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)?
Thanks. So it is cheaper to buy and put it for sale (assuming I can find a buyer)?
Quote from: BD on September 09, 2013, 02:22:16 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
Quote from: LotusAirways 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)?
Only if it is a popular model, you can lease out with as much as 40% premium