Gnomon
Topic Author
Posts: 894
Joined: Thu Jun 03, 1999 12:38 pm

Aircraft Leases

Fri Jun 14, 2002 2:54 pm

I notice that a number of airlines lease aircraft from banks. AirTran, for example, leases its entire 717 fleet from Wells Fargo Bank Northwest, according to Bill Harms' census, but company literature says the 717s are financed through Boeing Capital Services.

How do leases of this nature work? Are they leases signed for a term (as in a "traditional" lease from ILFC, AWAS, etc.), or are they some sort of lease-financing arrangement?

Does the aircraft return to the lessor at the termination of the lease with institutions like WFBN, or is the contract renewed indefinitely?
 
penguinflies
Posts: 932
Joined: Thu Apr 06, 2000 12:00 pm

RE: Aircraft Leases

Sat Jun 15, 2002 6:39 am

The Boeing Company has incorporated financial services as a key element of its total solutions strategy. Boeing Capital Corporation enhances this strategy by creating new dimensions in financial solutions for our commercial aircraft customers. Financial services for aircraft include new and used Boeing and non-Boeing aircraft such as Boeing, McDonnell Douglas, Airbus, Embraer, Bombardier, etc. Boeing Capital also assists our commercial aircraft finance customers with other financial alternatives and advice in support of bundled solutions for all Boeing products and services.

As a full service financier, the Aircraft Financial Services group specializes in arranging creative finance and lease structures; administration of Boeing financing commitments and guarantees; and offers a broad range of financing options and solutions.

>>I think they are more of a go-between since Boeing Capitol's customers have to meet qualifications. Boeing Capitol then goes shopping for the best financial deal for the airline/business and the financial institution that comes up with the best deal is chosen by Boeing and the Customer (this is a real simplistic outline for the billions that Boeing Capitol handles a year).

Does the aircraft return to the lessor at the termination of the lease with institutions like WFBN, or is the contract renewed indefinitely?

You can find this information out by going to and reading an airline's 10-K annual report. Outlined in there is the lease structure and some useful information about termination of the leases and lease options

hope this helps
 
AmericanKing
Posts: 77
Joined: Sun Jul 23, 2000 2:52 pm

RE: Aircraft Leases

Sat Jun 15, 2002 11:15 am

Penguinflies, what does the term 'Wet Lease' mean?

"If I have seen farther than others, it's because I was Standing On The Shoulder Of Giants."

AA,mericanKing
 
9V-SVE
Posts: 1953
Joined: Mon Nov 12, 2001 7:51 pm

RE: Aircraft Leases

Sat Jun 15, 2002 3:31 pm

Wet Lease means leasing the aircraft loaded with fuel plus the pilots and maybe the FAs.

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