NAFA member Global Jet Capital discusses the top 5 benefits of this frequently misunderstood financing product for individuals and organizations.
There is an unprecedented level of interest in business aviation. Thankfully, there are a range of options business aviation users can choose from to access an aircraft. Each conveys its own intrinsic benefits and drawbacks, and may be more or less attractive to the user based on their unique situation. Mindfully weighing these options – from charter, to fractional ownership, to operating leases, to traditional financing – is a crucially important process, especially since your choice can have far-reaching implications for your balance sheet.
There are many strategic advantages to an operating lease that you should consider when making this choice. Here are the top 5 advantages that this frequently misunderstood financing product offers individuals and organizations:
1. Built-in agility
Yes, operating leases are contractual arrangements. The right lessor, however, can structure a lease that can adjust to changes in your mission.Depending on your needs, a lease can permit extensions, provide an early termination opportunity, or facilitate a move into a larger or smaller aircraft. In this framework, it’s easy to pivot to suit your unique situation.
This Global Jet Capital aricle was originally published by Business Jet Traveler in February 2022.