The wise folks at Conklin & de Decker have just published an article titled Lease Pros And Cons – The Things You Should Know. I highly recommend you click through and read the whole thing, (and many of the other articles they write) but here are a few central conclusions.
Key Advantages to Leasing a Business Jet:
- Leasing is less capital intensive than cash purchase.
- Leasing shifts the residual value risk to the lessor.
- If your company does not need the tax write-off from tax depreciation, leasing is generally better than financing.
Key Disdvantages:
- A lease can place restrictions on the operations of the aircraft.
- Early returns from a lease can be costly.
- With a lease, you may loose tax advantages.
{ 3 comments… read them below or add one }
Blue Star Jets don’t operate any aicraft. So I am not sure how they are qualified to comment on aircraft maintenance issues etc. From personal experience they are just brokers (middlemen / parasites), who have a database of aircraft operators to call. They are always looking for the cheapest deal, trying to accommodate people who cannot really afford jet travel. Those who cannot afford to pay top dollar, will probably end up flying in a museum piece. Let’s hope the cargo doors won’t fall off
Regards CG
I think that every successful business model somehow utilizes the “middleman” not parasites to effectively market and grow their client base.I do know for a fact that Todd Rome the CEO of Blue Star Jets is very familiar with planes as he has owned and operated them since at least 1993 and you can take that to the bank………..
Maintenance records are crucial and working with a reputable company that provides referrals also helps.
Ben