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Q: Aircraft Leasebacks ( Answered 5 out of 5 stars,   2 Comments )
Subject: Aircraft Leasebacks
Category: Business and Money > Small Businesses
Asked by: planeguy-ga
List Price: $2.00
Posted: 17 Mar 2005 06:19 PST
Expires: 16 Apr 2005 07:19 PDT
Question ID: 496060
Where can I find information (spreadsheets, contracts, "dos and
don'ts") about leasing a Cessna 172 to a flight school?
Subject: Re: Aircraft Leasebacks
Answered By: byrd-ga on 17 Mar 2005 10:09 PST
Rated:5 out of 5 stars
Hi planeguy,

Glad to see you're looking for information before undertaking a
leaseback arrangement. I've know lots of people who've made such an
arrangement without doing that, and many of them were unhappy with the
result.  However, I?ve also known a few people who did a leaseback and
were pleased with how it turned out. Like many other endeavors, there
are definitely two sides to this story.

So then, here are a few tools and places where you might begin to
analyze the whole process to see if it?s right for you.


--?The Top 10 Essential Considerations  for Successfully Leasing Your
Airplane for Profit? 

Note that the above file is in pdf format and you?ll need Adobe
Acrobat Reader to read it.  If you don?t already have that, you can
download a free copy here: 

Or you can read an html version of the same article, here: 

Scroll down to near the bottom right of this page, where you?ll find a
form to sign up for a 4-part course on the ins-and-outs of aircraft

--?Is a Leaseback Good for You??
First-time airplane purchasers are often tempted to offset the high
cost of aircraft ownership by leasing their airplane back to an FBO,
flight school, or charter operator. Such leaseback arrangements
typically look great on paper, but are fraught with pitfalls for the
unwary aircraft owner. An expert explains how to avoid getting stung
by doing your homework. From AvWeb (June 7, 1998)  

--Cessna Leaseback Program:

--The Aircraft Owners and Pilots Association (AOPA) has a lot of
information about this topic, but you?ll need to be a member to access
some of it.  In case you are, here?s a link to a page with a great
deal of information and helpful tools, including a sample lease

?AOPA's An Aircraft Owner's Guide to Aircraft Leasing?

Table of contents of this booklet:
-An Overview of Leases
-Choosing the Right FBO
-Aircraft Leasing Rates and Revenues
-Determining the Costs
-Tax Considerations
-Cash Flow Projections
-Lease Agreement Provisions
-Leasing Checklist
-Frequently Asked Questions on Leasing
-Sample Lease Agreement

This is followed by a hyperlinked list of articles on the subject, including:

?To Lease or Not To Lease: Can You Make an Aircraft Work for You??
By Patti Arthur
AOPA Flight Training, July 1998
?Aircraft leases can be rather confusing to the uninitiated. If you're
an aircraft owner and you're thinking about leasing your aircraft to a
flight school or other individuals, you should understand some basic
rules and terminology. In addition, to avoid potential future problems
you should speak with people who know about the leasing process. It's
also important to find out what types of leasing activity the FAA sees
as air chartering.?


Links to several discussion threads, pro and con, with opinions on the subject: 


Spreadsheet entitled, ?Flying Club/Leaseback Cost Analysis? ? very
complex and complete with macros, etc.  Note that it?s in MS Excel

This reprint of an AOPA article entitled ?Overview of Leases? also
contains a sample leaseback agreement: 


I hope you?ll find this information helpful.  In finding it, I used
the following search terms, which you may use yourself if you?d like
to continue looking:
[aircraft leaseback]
[aircraft leaseback spreadsheet]
[aircraft leaseback sample agreement]
[aircraft leaseback OR lease OR leasing]
In addition, I used my own bookmarks for AOPA  and
AvWeb and then used the above search terms on
those sites as well.

If something isn?t clear, or you have trouble with a link, please let
me know in a Request for Clarification before rating and closing your
question, and I?ll be happy to explain further or repost a link.  Best
of luck to you in making your decision.

Blue skies and tailwinds,

Clarification of Answer by byrd-ga on 17 Mar 2005 12:16 PST
My apologies, I just realized I forgot to paste the link to the AOPA
guide. Here it is:
planeguy-ga rated this answer:5 out of 5 stars and gave an additional tip of: $2.00
Thanks for you help!

Subject: Re: Aircraft Leasebacks
From: byrd-ga on 17 Mar 2005 11:15 PST
You're very welcome! I'm glad you were pleased. Thank *you* for the
five stars and the nice tip! Wishing you all the best.

Subject: Re: Aircraft Leasebacks
From: airplanenoise-ga on 18 Mar 2005 16:48 PST

Byrd-ga is absolutely right!  A leaseback arrangement (like any other
partnership) can be a great success or a huge disaster.  If you do
your homework (and it appears that you are) you're likely to find the
arrangement to be a very good one.

If you'd like a complimentary CDrom titled "Leaseback Tips and Tools"
you can request one at:

For a 4 part Leaseback E-mail course just send a blank e-mail to:  


Good Luck!

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