If you can view your airplane as a "tool" and you've got income to support an airplane payment. . . a "leaseback" may be right for you! A leaseback is an arrangement in which an individual purchases an airplane and allows a flight school to manage and operate the airplane in his or her flight school. Properly structured, a "win, win, win" situation is created. Win #1: A flight school, which is generally cash strapped can now attract new students more effectively and be more competitive in the market place while retaining capital for advertising and other operating expenses.
Win #2: The owner of the airplane who has no other business use for the airplane, now has legitimate business use and the ability to depreciate the equipment and benefit from the tax benefit that comes from this depreciation. This can be very significant and the depreciation can be as much as 42% of the aircraft value in the first year!
Win#3: The customer wins when he/she can learn to fly in a brand new airplane (new airplanes are most profitable for a leaseback due to the waranty) sporting equipment found in some of the best corporate aircraft.
Evaluating the leaseback opportunity and creating a business plan to determine if a leaseback is right for you is a step that should not be done in haste. Visit
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About the Author Pat Redmond, Brighton, Mi usa airplanenoise@airplanenoise.com
