Driven by operating and cost efficiencies, more and more airlines acquire new aircraft and aviation equipment through leasing rather than direct purchase; hence, leasing is an increasingly important financial alternative in aviation business. HKIL provides a wide range of leasing products and services to our airline customers by addressing their specific needs in the areas of fleet management, financing and risk control.

 

Finance Lease:
Finance lease is an arrangement where the lessee pays rents and has a final purchase option. Lessee has the economic benefit of the asset and receives the legal title at lease end. Finance lease helps the airlines defer certain tax payables and reduce some operating cost.

 

Operating Lease:
Operating lease is an arrangement where the lessee pays rents to obtain usage of the asset, but gains no right or interest in the asset title. Operating lease helps the airlines acquire aircraft rapidly without placing burdens airlines’ balance sheet.

 

Sale and Leaseback:
Sale and Leaseback is an arrangement where the seller of an asset leases back the same asset from the purchaser. It is useful when airlines need to untie the cash invested in an asset for other investments, and still need the asset to operate. Leaseback deals can also provide the seller with additional tax deductions.

 

HKIAL can help the lessee arrange the whole process of finance lease, operating lease and sale and leaseback, and can also provide necessary advices on the issues of financing and fleet manegement in the process.