| If you can view your airplane as a "tool" and | | | | Win #2: The owner of the airplane who has no |
| you've got income to support an airplane | | | | other business use for the airplane, now has |
| payment. . . a "leaseback" may be right for you! A | | | | legitimate business use and the ability to |
| leaseback is an arrangement in which an individual | | | | depreciate the equipment and benefit from the |
| purchases an airplane and allows a flight school to | | | | tax benefit that comes from this depreciation. |
| manage and operate the airplane in his or her | | | | This can be very significant and the depreciation |
| flight school. Properly structured, a "win, win, win" | | | | can be as much as 42% of the aircraft value in |
| situation is created. | | | | the first year! |
| Win #1: A flight school, which is generally cash | | | | Win#3: The customer wins when he/she can learn |
| strapped can now attract new students more | | | | to fly in a brand new airplane (new airplanes are |
| effectively and be more competitive in the | | | | most profitable for a leaseback due to the |
| market place while retaining capital for advertising | | | | waranty) sporting equipment found in some of |
| and other operating expenses. | | | | the best corporate aircraft. |