OPERATING LEASE OF AIRCRAFT: A DECISION MODEL FOR THE AIRLINES

This paper examines the lease/own decision from an airlines standpoint, recognizing explicitly the uncertain and pro-cyclical nature of air transport demand. Both the financial and operational aspects of the aircraft lease are considered to derive optimality conditions which related owned capacity, leased capacity, and expected traffic demand to operating lease premiums. The results obtained by applying the model to the worlds major airlines would range between 40 and 60 percent for their total fleet, for the reasonable range of operating lease premiums. For leasing companies, this indicates that there is still a large potential for growth of the demand for operating lease.

Language

  • English

Media Info

  • Features: References; Tables;
  • Pagination: p. 293-305

Subject/Index Terms

Filing Info

  • Accession Number: 00783940
  • Record Type: Publication
  • ISBN: 0080435904
  • Report/Paper Numbers: Volume 1
  • Files: TRIS
  • Created Date: Feb 7 2000 12:00AM