Leaseback
In the context of aviation, leaseback refers to an arrangement where an aircraft owner sells their aircraft to a company or an individual and then leases it back from them. This arrangement is often used as a financial tool that allows the aircraft owner to free up the capital invested in the aircraft while still retaining the ability to use it. The leaseback agreement typically stipulates the terms of use, maintenance responsibilities, and payment details. The lessee, often a flight school or charter company, benefits from the addition of an aircraft to their fleet without the upfront cost of purchasing. The lessor, typically the aircraft owner, benefits from income generated by the lease and potential tax benefits. Leaseback arrangements can be complex and may have significant tax and legal implications, so it is recommended that both parties seek professional advice before entering into such an agreement.
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