Do You Plan to Acquire Aircraft on Lease Finance to Expand Your Fleet?

The aircraft purchases run into several billion dollars. If your company is planning to expand the fleet by adding three or four hundred aircraft, leasing and financing may be the best option. The lease finance option worldwide accounts for 53%. In nations like India, the commercial fleet stands at 80% on lease finance.

Improved cash flow and operational flexibility

The lease finance option allows the airline operational flexibility. The airlines also enjoy the improved cash flow. Air India is planning to acquire around 470 aircraft to modernize its fleet and released an order for the same in early March 2023. It is the biggest ever order in the history of aviation. Indigo, a budget airline from India, placed an order for 300 aircraft in 2019.

If you are looking for such large deals at affordable rates, David Goodnight from Austin, Texas will help you land at the best price. The company has its aircraft to lend on lease. It can also help you buy new aircraft using its relationships with prominent aircraft manufacturers in the US, EU, and across the world. You can choose to pay outright, or this US-based group will buy it and give it to your company on a lease-purchase basis.

According to the latest available information, the total order value for 470 aircraft is $70 billion. Air India released an order for 250 aircraft to Airbus, an aircraft manufacturer based in the EU, and another order for 220 jets to Boeing, which is based in the US. Air India said the planned purchases will be funded through sale and leaseback, shareholder equity, and internal accruals.

Aircraft are expensive

According to the list price on the website of Boeing, the new 737 series aircraft (the 737-700 version) costs $89.1 million. The 737 Max 10 costs around $134.9 million. So, aircraft are expensive. Budget carriers planning to add more aircraft will find it difficult to pay from either internal accruals or large funds from banks. In such a situation, lease purchase is the best option for budget carriers across the world.

David Goodnight from Austin, Texas is at the forefront of helping such budget carriers buy new or existing aircraft on a lease basis and pay from profits later. On the other hand, budget carriers can only take such aircraft on a lease basis and pay according to the contract terms. In such a case, David Goodnight will be the owner of the aircraft. It will also bear the depreciation costs of the aircraft throughout the lease.

So, the budget carrier will not be able to claim tax on such deals. The lender can avail itself of tax benefits by showing such deals as loans. The budget carriers can choose to pay on a monthly or annual basis and claim ownership at the end of the loan tenure.

The best option for new airlines

The new entrants to the aviation industry can approach David Goodnight either to buy a new aircraft at reduced rates or get older aircraft from its inventory. It offers attractive financing options for airlines that are on a budget.