Commentary

35 The finance lease

CIVIL AVIATION vol 7
| Commentary

35 The finance lease

| Commentary

35 The finance lease

A finance lease1 is a financing device by which the lessee can acquire the use of an asset from a lessor for most of its useful life. The rental payments over the life of the lease (generally between 10 and 25 years) are sufficient to enable the lessor, who is often a leasing subsidiary of a bank or other financial institution, to recover the cost of the equipment, taking into account any tax benefits available, plus an assured return on its investment. The commercial assumption is that, at the end of the lease, the aircraft will

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