Business

Aircraft leasing: Pros and Cons

There are several factors to consider when deciding whether or not you should lease an aircraft, such as the level of leasing activity in your area, any fixed costs for the aircraft, and how often and for how long you intend on renting it. If your business is rapidly growing and has only just begun development in its aviation sector, this may be an option worth considering. However, if you are still new to commercial aviation, leasing may not yet be your best option.

The Pros of Leasing an Aircraft

Leasing is an excellent option for those just starting in commercial aviation or who have not acquired the necessary skills to fly every type of plane a business may need.

Flexible Costs

Leasing an aircraft is a great way to pay for it cost-effectively. It can save you thousands of dollars over the regular purchase price or operating an airplane. However, some fees come with leasing, making it more expensive than purchasing an aircraft outright.

Transportation to the Airport

If you are leasing an airplane, you have to take it to the airport. The costs of transporting an aircraft will be based on what you decide is the best way to get it there. It can range from renting a truck, hauling it in your car, driving the vehicle to the airport, renting another car from the airport parking lot, or hiring a flight crew and driver.

Fuel

Fuel is another factor to consider when choosing whether to lease or buy. If you are only renting the aircraft from the moment you need it, then the fuel cost may not be worth mentioning. However, if you intend on flying it for a more extended period using fuel charts may be a good way to make savings.

Maintenance

Aircraft maintenance is a lot like any other kind of maintenance. It is still essential to keep the aircraft in good working order and assume the expense of regular service. The main difference between the two is that it will contain those costs in its monthly payment if you lease a plane. In case of repairs to your leased aircraft, you will also be responsible for them.

More Destinations

If you are starting a new commercial aviation business, flying is an integral part. It means that you will have to keep your aircraft on the ground when not in use, which can add to the costs of operating it. By leasing an airplane, you can save thousands by buying only what you need rather than a larger plane which may not be as cost-effective for your business.

The Cons of Leasing Aircraft

Leasing an aircraft is not for every business. Some companies and industries cannot afford the cost of leasing. Before you decide whether or not this is the right choice for your company, consider the following issues.

Future Use

If you choose to lease a plane, it means that you will be limited to how long and how many times you can use it. However, it may be a problem if your business requires traveling abroad or if you frequently travel out of state.

Cost

As with any major purchase, try figuring out how much is a private jet and whether or not the cost of leasing an aircraft is worth it. It means comparing your present situation with the future price of purchasing the plane to see the more cost-effective option.

Renewal

Aviation leases usually contain a clause that requires you to renew your contract if you are happy with its services. Suppose you are not satisfied with the terms of services provided by the leasing company, or you have to decide whether or not to renew at the end of your contract. In that case, you should consider all your options before making any decision.

Refueling

If you choose to lease an aircraft, there is always a small risk of the company running out of money and leaving your airplanes without fuel. It means that you may have to pay extra to refuel your planes or lease another one.

Conclusion

Using aircraft is a great way to add a little more excitement and variety to your business travel experience. However, depending on the number of your employees, the level of travel you do, and the size of your company, it may be cheaper and faster for you to purchase planes rather than lease them.

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