In the rapidly-changing global business environment, time is money. No one understands this quite like the business traveler. However, often times their hands are tied as they are left to the mercy of commercial airlines, airport delays and many more travel hiccups that end up proving costly to their business’s bottom line.

1. IS IT RIGHT FOR YOUR COMPANY?
AIRCRAFT LEASING:

2. When looking to acquire a business aircraft, there are a number of financing
options available. There are also a number of considerations that go into a final
financing decision, but the most prominent are the operational cash requirements
vs. financial tie-ups of a large purchase like an aircraft.
Let’s take a look at the different types of financing available for a business aircraft
and the advantages that may make it easier on a company’s budget.

3. IS IT RIGHT FOR YOUR COMPANY?
OPERATING LEASE

4. OPERATING LEASE
The aircraft lessor and the lessee
agree to the use of an aircraft asset
for a period of time in exchange
for a rental payment and a modest
security deposit. The lease will
typically be five years or longer.
The lessee is responsible for
the lease rate itself, insurance,
operational and maintenance
related payments for the term
of the lease.
The lessee will then return the
aircraft to the lessor at the end of
the leasing period. If the return
conditions are met, the security
deposit is returned.
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5. OPERATING LEASE Advantages
1. ALLOCATION OF CAPITAL
Acquiring a long-range private aircraft for cash, or using traditional loan financing for 70% of the aircraft cost, represents a
significant allocation of capital into a depreciating asset. With an operating lease, up to 100% of the cost of the aircraft can be
funded by the lessor. Lessees typically only have to fund the security deposit and certain other transaction costs at closing. The
operating lease allows corporations the opportunity to gain access to a long-range aircraft without having to tie up significant
amounts of capital in a non-core asset.

6. OPERATING LEASE Advantages
2. NO RESIDUAL VALUE RISK
Operating leases shift the risk of aircraft ownership to the lessor and away from the lessee. At the end of the operating lease,
the lessee simply returns the aircraft. The value of the aircraft at the end of the lease is the lessor’s risk, not the lessee's.
The introduction of new aircraft technology, a slump in global equity markets, or an excess supply of pre-owned aircraft can
all affect the future value of an aircraft. But with the operating lease product the customer has no exposure to any of these
events.

7. OPERATING LEASE Advantages
3. CERTAINTY OF COST
In both the loan and the operating lease scenario, the lessee will have the same direct operating costs. But at the end of the
loan term, when it comes time to sell the aircraft, cost of ownership can jump if the lessee cannot sell in a timely manner or if
the net proceeds fall short of expectations.
An operating lease leaves the residual value risk with lessor and provides the customer with a certainty of cost associated with
the term of use for an aircraft.

8. OPERATING LEASE Advantages
4. ACCOUNTING AND TAX BENEFITS
Operating leases support off balance sheet accounting treatment. A business can access a private aircraft without burdening
the balance sheet with a non-core asset.
For jurisdictions that tax the purchase of an aircraft, the operating lease may allow users to minimize their tax liabilities to just
tax on monthly lease payments. Consult your tax and accounting professional for guidance.

9. IS IT RIGHT FOR YOUR COMPANY?
CAPITAL LEASE

10. CAPITAL LEASE
A capital lease (or finance lease) is
a type of lease where the lessee
will select an aircraft that the lessor
will then purchase. The lessee will
have use of the aircraft during the
lease and will pay a series of
rentals or installments.
The lessor recovers a large part
or all of the cost of the aircraft
plus earns interest from the
rentals. At the end of the leasing
period, the lessee has the option
to acquire ownership of the
aircraft.
The finance company is the legal
owner of the asset during the
duration of the lease. However
the lessee has control over the
asset providing them the benefits
and risks of economic ownership.
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11. CAPITAL LEASE Advantages
1. BENEFITS OF OWNERSHIP
Finance leases are typically accounted for as being 'owned' for tax and accounting purposes by the lessee. Benefits such as
depreciation and other inducements to buy a capital good are typically for the lessee’s account.
Since the title will pass to lessee upon final payment, the benefits and risks of the residual value of the aircraft will also accrue to
the lessee.

12. CAPITAL LEASE Advantages
2. ALLOCATION OF CAPITAL
Up to 100% of the cost of the aircraft can be funded by the lessor under the finance lease structure. Lessees typically only have to
fund the security deposit, an initial down payment and certain other transaction costs at closing.

13. IS IT RIGHT FOR YOUR COMPANY?
MEZZANINE LOAN

14. MEZZANINE LOAN
Borrowers may be able to source
attractively priced senior debt or
finance lease capital to fund the
senior portion of an aircraft.
In certain circumstances, a separate
financing organization can provide
the borrower with additional "top up"
loan capital to finance 80%-100% of
the acquisition or refinancing value of
an aircraft.
The term of the junior or
mezzanine debt will likely be
between a five and 10-year term
and may feature a lump sum or
'balloon' amount at maturity.
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15. MEZZANINE LOAN Advantages
1. ALLOCATION OF CAPITAL
Combined with a traditional senior loan, this allows borrowers to obtain up to 100% financing of the cost of the aircraft from the
company working together with a senior lender. Clients typically only have to fund an equity deposit, the security deposit and
certain other transaction costs at closing.

16. Offering a full range of aircraft financing solutions, products and services, Global Jet
Capital provides every client with flexibility, comfort and convenience with their
aircraft finance.
Our management team has the industry expertise and experience needed to
structure integrated solutions for all your aircraft leasing and lending needs.

17. WWW.GLOBALJETCAPITAL.COM