Aircraft leasing

What is aircraft leasing and why do airlines lease? Aircraft leasing is in essence a simple transaction. Typically an aircraft lessor purchases aircraft directly from the airframe manufacturer e.g. Airbus or Boeing. These aircraft are then leased by an airline which gives them the right to use the aircraft for which rental or lease payments are made to the lessor. For airlines, lease options give financial flexibility freeing up liquidity and minimising issues arising from the management of residual value of aircraft as they age. Leasing also allows for greater flexibility as regards replacing older aircraft or growing a fleet at the time that is right for an airline without having to manage long lead times to delivery of new aircraft.
(Contribution from Ireland)