Aircraft Leasing ?

[CitationLover]

Does anyone know the primary difference between Capital Leasing and Operating Leasing?

Capital to me would be simply "renting" an aircraft. If so, what is a typical leasing finance charge on a new 737-8? I realize credit ratings, etc affect this. assume a healthy company with good credit.

Is operating simply tying the leasing charge to operating revenue? If so, what is a typical charge via % of the a/c's revenue?

Thanks.

 

[radarlove]

You have it backwards. An "operating" lease is the same as you have with a car, as in "I get to operate this for x years then you get it back or we re-negotiate."

A "capital" lease is one where you have ownership rights at the end of the lease , so the tax law treats the lease as a loan, even though it isn't, really.

It's all based on very complex tax rules. Capital leases show up as debt, operating leases do not, even though they pretty much represent the same thing.

I heard that leasing a new B737 was around $170k per month. I have no idea if that figure is based in reality.

 

[CitationLover]

You have it backwards. An "operating" lease is the same as you have with a car, as in "I get to operate this for x years then you get it back or we re-negotiate."

A "capital" lease is one where you have ownership rights at the end of the lease , so the tax law treats the lease as a loan, even though it isn't, really.

It's all based on very complex tax rules. Capital leases show up as debt, operating leases do not, even though they pretty much represent the same thing.

I heard that leasing a new B737 was around $170k per month. I have no idea if that figure is based in reality.

thank you