Tennessee Aircraft Lease Agreement with Option to Purchase

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Multi-State
Control #:
US-02501BG
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Description

Under the Federal Aviation Act of 1958, any conveyance that affects the title to, or any interest in, any civil aircraft of the United States must be acknowledged and recorded with the Administrator of the Federal Aviation Administration in the manner prescribed by statute. After such an instrument is recorded, it is valid as to all persons without recording and regardless of notice.


This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.

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  • Preview Aircraft Lease Agreement with Option to Purchase
  • Preview Aircraft Lease Agreement with Option to Purchase
  • Preview Aircraft Lease Agreement with Option to Purchase
  • Preview Aircraft Lease Agreement with Option to Purchase
  • Preview Aircraft Lease Agreement with Option to Purchase
  • Preview Aircraft Lease Agreement with Option to Purchase

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FAQ

The three primary types of aircraft are fixed-wing airplanes, rotorcraft, and unmanned aerial vehicles. Fixed-wing airplanes are commonly used for commercial flights, providing speed and efficiency over long distances. Rotorcraft, such as helicopters, excel in vertical takeoff and landing, making them suitable for shorter or more complex travel routes. Unmanned aerial vehicles, or drones, are revolutionizing industries with their ability to perform tasks without a pilot onboard.

The three main types of aircraft leasing include operating leases, finance leases, and wet leases. An operating lease allows you to use an aircraft without the burdens of ownership, typically for short-term needs. A finance lease, on the other hand, is more like an installment payment plan to eventually own the aircraft. Additionally, a wet lease involves leasing with included crew and maintenance, making it ideal for those seeking full-service options.

With a dry lease, an aircraft owner/lessor leases an aircraft to a lessee/operator without a crew. Neither the lessor nor the lessee is required to hold a charter certificate. In a dry lease situation, the lessee provides its own crew and exercises operational control of its flights.

Leasing companies In short, yes, they are profitable. With aviation booming as it is and passenger numbers rising yearly, airlines do lease more and more aircraft. According to a KPMG report about the aviation industry leaders, around 15% of the global aviation fleet was leased by airlines in 1999.

The primary reason why airlines opt to lease aircraft is due to the lower overall cost. For example, a new Airbus A320neo would cost airlines around $110 million, while the larger Boeing 787 would cost around $250 million.

Leasing an aircraft has several clear benefits, chief among them affordability. Not only do you forgo the upfront cost of purchasing a jet outright, but the cost of ongoing ownership is also much lower. This means more cash on hand in the immediate, as well as over the long-term.

Today, over 13,300 commercial jet aircraft, valued at approximately $331 billion, are owned by operating lessors and leased on this basis to the global airlines, representing more than 49% of the fleet by value.

The operator of flights under a wet lease is required by the Federal Aviation Regulations (FARs) to possess an Air Carrier Certificate and to conduct the flights under FAR Part 135, assuming that the flights are flown as "on-demand" passenger-carrying trips.

Airlines lease aircraft from other airlines or leasing companies for two main reasons: to operate aircraft without the financial burden of buying them, and to provide temporary increase in capacity.

Lease new aircraft types at lower costs. Eliminate the risk of owning a superseded asset. Maintain cash for other business investments / activities and preserve working capital. Tax advantages, such as investment tax credits & depreciation allowances that many countries offer.

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Tennessee Aircraft Lease Agreement with Option to Purchase