Operating Lease

The time period in which the leased aircraft is transferred to the lessee is a minimum of three years. Payments are received from the lessee monthly in advance, usually operating leases will also require maintenance reserve payments.

Under normal circumstances the operator will hand the aircraft back to the Lessor in-line with the redelivery conditions set out in the contract, typically the lessee will not have an option to purchase the aircraft at the end of the lease term.

Operating leases are attractive to many  airlines as a way to manage risk and cashflow, since the lessor retains ownership of the equipment and the asset risk associated with it.