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LEASEBACKS

What is an Aircraft Leaseback?

A "leaseback" is an agreement whereby Aeronerd Aviation makes your aircraft available for rental and training purposes. Some of the responsibilities Aeronerd Aviation is accountable for is:

  • Introducing qualified pilots to rent your aircraft

  • Paying all expenses associated with your aircraft (maintenance, fuel, insurance, and tie-down fees)

  • Collecting all revenue generated

  • Coordinating maintenance and ensuring the aircraft meets all regulatory requirements

  • Coordinating all scheduling of the aircraft

  • Accounting for all flight time, rental income, and expenses - and pay you the agreed percentage of the revenue generated

 

Why Leaseback My Aircraft?

A leaseback isn't for everyone. Here are some of the reasons to consider a leaseback:

  • You want to own an airplane but can’t afford to own it outright.

  • You are in a position to take advantage of the tax benefits of owning an airplane.

  • You already own an airplane but are not flying enough. Airplanes should be flown regularly to keep them healthy.

  • You want to turn your aircraft into an asset instead of a liability.

  • You would like to reduce your flying costs.

  • You and/or friends are going to be doing a lot of flying, and would rather pay yourself for flying, rather than someone else.

 

Why Leaseback with Aeronerd Aviation?

Ok, so you've read the above and are still thinking a leaseback could suit your needs. Why Aeronerd Aviation? 

Aeronerd Aviation is a new and blooming flight school due to the high demand for flight training now that the vaccine for COVID-19 is available. Aeronerd Aviation has derived from a company that has over 10 successful years in leasebacks, and our goal is to return your aircraft in better condition than when we got it! Normal wear and tear is to be expected. Get the benefit of:

  • Trusted aircraft management - well versed with the applicable regulatory requirements

  • Major discounts on your aircraft's largest expenses - fuel, maintenance, and insurance discounts associated with the aircraft fleet

  • A large and established customer base of highly trained and skilled pilots and certified flight instructors to fly your aircraft

  • Infrastructure designed to make leasebacks a simple process

  • Regularly scheduled aircraft upkeep such as inside and outside aircraft detailing and keep the aircraft looking its best

  • We treat all leasebacks as if the aircraft was our own baby which we welcome to the Aeronerd family with love and care through our strict aircraft airworthy & wellness program

 

How The Leaseback Will Work

The leaseback is basically an agreement involving an aircraft you own. You provide us with your airplane. We collect the revenue gained from the aircraft rentals. At the end of each month, we write you a check if revenue exceeds expenses up to the agreed percentage. If expenses exceed revenue, we send you an invoice. We take care of everything for you so you don’t have to worry about all the tedious details of aircraft ownership.

 

Pros and Cons of Aircraft Leasebacks

The Pros:

  • Dramatically reduced cost of ownership of your aircraft.

  • You may use the aircraft for the cost of fuel alone (typically around $40-55/hr).

  • You will gain equity in an aircraft as it works, often paying for an aircraft completely in 4-5 years of service.

  • Potential for excellent positive cash flow.

  • Significantly accelerated depreciation tax credits. (up to $500,000 in the first year, exceeding your actual outlay by a factor of 10)

  • Your aircraft will be in the best care with Aeronerd Aviation through our aircraft airworthy & wellness program

 

 

The Cons:

  • Flight training and rental service is rigorous and may accelerate wear on the aircraft. Some of our planes fly hundreds of hours per year or more.

  • You’ll have to schedule your flights for your aircraft just like any other renter. You’ll lose the flexibility of flying your particular airplane whenever you want

 

Leasebacks are highly variable investments and are not for everyone. The decision to put an aircraft into a leaseback should be considered carefully. We track the financial performance of all our aircraft and have detailed historical data to help make informed decisions. If you think a leaseback is something you might consider, please contact us for more details. We’ll be happy to work with you to predict the revenue, expense, and overall performance of your aircraft in our fleet. We can also help you purchase the right aircraft and to set your aircraft’s rental rate to maximize your profits. After all… Aeronerd Aviation cannot be successful unless our aircraft owners are successful and satisfied with our profound service.