lease-back question

[cforst513]

can anyone explain what "lease-back" means? the airplanes i fly at my school are lease-back, and i was just curious what that meant. thanks!

 

[Flyboyz]

It means an individual or corporation not associated with the school owns the airplanes and leases them to the school for them to operate. In return, the school makes payments to the owner.

It could be a rather difficult transaction to conprehend and takes various forms. However, you now get the gist.

 

[Publishers]

Often this is a case where the school sells the aircraft to someone and then leases back for their use hence the term lease back than rather just lease.

 

[Metro752]

WHAT IT REALLY MEANS.

You can schedule a 250ish mile cross country two weeks in advance, and the spoogebag who really owns the plane can just take it, while YOU are already pre flighting it.

It rarely happens, but it does, depending on the contract with the school.

I've been screwed a couple times, 30 minute ride to the airport, gassed the plane up, in the middle pre flight (once when it was 10 degrees out) and the guy says, I need to take my plane (guy didn't even do his own pre-flight, just checked the gas and got in and went.) The 2nd time was the last time I flew that plane in particular.

 

[ISaidRightTurns]

Also, the owner gets a sweet depreciation write off.