Leasing Structures In Aviation

The aviation and shipping industries are unique in the sense that both industries operate using high value assets which are very costly to purchase and even more challenging to operate and maintain. For this reason, aviation businesses tend to opt for a more practical and cost-effective approach whilst still focussing on maintaining a decent turnover. Leasing has proven to be a flexible and more practical alternative to operating and/or purchasing an aircraft for the purposes of rendering an air service since it is more cost-efficient and therefore a company could easily do away with the burden of having to provide a hefty lump sum for the completion of a purchase transaction.

Even though the general concept of lease under the Maltese Civil Code remains the same, the nature and/or duration of a lease may vary which may give rise to different forms of leases. In light of the above, below are some of the common lease structures used in the aviation industry that may