Leasing of aircraft is a common practice undertaken by airlines and other aircraft operators. The airlines and operators simply approach aircraft companies for aircraft lease and various aircraft companies are available in Australia, serving both national and international airlines operating in Australia by availing various types of Aircraft Lease Finance. They also serve government agencies and other private operators.Leasing of aircraft is definitely expensive and an airline or operator may not have the necessary funds to do so comfortably. This makes lease finance necessary. Commonly referred to as capital leasing, aircraft leasing is a complex undertaking. It involves a leasing company purchasing an aircraft through debt and equity arrangements before leasing the same to an airline or operator. Because aircraft leasing period is mostly long-term, it is common for an airline or operator to purchase a leased aircraft at the expiry of a lease period. This however depends on the type of lease agreement entered into between an airline or operator and a leasing company.Like is in other parts of the world, Australian airlines and other operators prefer to lease aircraft for the benefits that accrue. Leasing of aircraft gives airlines and other operators the freedom to claim depreciation deductions on a leased aircraft's useful life for taxation purposes. This enables them to save substantially on the amount of tax they are obligated to pay.Although aircraft leasing companies are the main source of Aircraft Lease Finance, other sources are available. Banks have traditionally provided varied types of financing to different businesses, the airline industry included. In providing finances to the airline industry however, they do so as a consortium, where they create a finance pool into which every bank puts its finance resources. This is because of the high cost and risks associated with aircrafts.Apart from banks, various Aircraft Lease Finance brokers are also available in Australia. The aircraft brokerage services are vital for the airline industry. This is because leasing aircraft involves a lot, with an airline or operator required to meet some conditions before qualifying for finance. In most cases, some operators do not meet the qualifications and the brokers come in to assist them obtain aircraft through lease arrangements although at a determined rate. Various types of Aircraft Lease Finance are available and depending on the type of finance lease, an airline or operator can take ownership of a leased aircraft at the end of a lease period.
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