FI.Chapter20 - ;i gtb $ 6 S_r Q,r!Y W Leegc Frm;as!r:Efi...

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;i gtb) 6 \{ $ S, _r !Y,* W Leegc Frm;as'!r-:Efi. ome of the biggcst playe$ in ihe airlino business ha\'e ncvc'r issued a ticket, lost n passenger's hrggnEc, or landed a planc jn bnd weaiher. Thcy are ihe aircraft leasirg coDr p.,n.,* lhe nrJ.l,.,,,rh.,nr",. of rvi,ri"r' and thc role is io hclp finance aircraft |nd clab]e airlines to rcspond more quickly and rll,,ie,,rr) ro r1.rrlcr , h.rnC.,*. Among tI,. ,.. i,,r pla),ers in aircraft lcasnrg arc GPA Cruup, n closcly held colnparv based h hclar\d, inll hltemntional Lease Finance of Beverl)' Hills Ai,.,df, ren-i,r! ..,mf.rniF- pur.l,.,'( .,,tr plrnes from manrf.cturcrs such as Bocing andAirbus and thcn lcase thcm, often on. rcl aiivcly short-tcrm bnsjs, to carriers slrch as Anrcrican, Bdiish Airwat s, Delta, Lufth.rnsa, and Uniicd, as \\ ell as io small, regn'lal coDr' panies all ovcr the wo.ld. Lcasing separ.tes ihe risks and r$rards of os,ning aircraft from those of operahrta them. Curcntlt leasirr8 corpanies buy about 50% of all nerv commer- The airlnrc industrv hns been undergoint major changes duc t,) global dcregulation. ln thc days of regulatnm, .lirlinesknc$,pre.iscly thc routes they wolrld sen'e, and thcy cotrlcl raise priccs to covef rll cost increascs. Thus, dirlines could Lluyplancsconfident thal rout€ shuctures r{'ould bo rclalively stable and Lhnt rcvcnues would coler fnrancnrg costs. Nor', ho\!cYcr airlinesarc' corlsiantl]' dropping ,rncl adding routes Ln response to changing com- petitive conditions. Iiec.usc diff€rent typcs of rircraft are bcticr suited for somc rootes ihan otlre -. .,ir :r'* r.uJ frequFrllv r(nru,.u'- iheir fleets for oPti,Ial operations. U an airhre h.d pJr,l,.'-r.i .,ll ol 'l- JrL,rrl ir h i,ld L' more difiicrLlt to respond quickly to clunging condiiions. lhe leasing companies, on theoiher hanct, leasc all types of aircratt to all typcs ol ,rirtine. .rrd tl fr, F u'L, llI 'onrc ',,lif, ' n '- where in the world that would bc irltercsted ,,1 a leascd aircraft \,!hcnit is rcturncd to lhe leas- r,S ' r,.t,,r\ llLr'nr, lea.utg rrt1v,rn. "u Lines' tlexibilitv and efficiencv Note, too, tllnt global dcrcglrLrtnnr also spah'ned a host of start-up airlincs in the Uril.d srrrF-. f,,n p.. Atfl.r,.. rJ \.r.,. slJn. up ,i. in.* r) li(.,11) .rrc if d pre, rn,{r. t d,, cial condiiion, and leasing companics are often more willing than banks nnd oiler lenders to iako on the financing risk because 1",- ', drc in .. '.t.r !, j) i, vo hlf l({.,1 |o.. lron -l-^rlJ lh( ,'irlih J.lu.,lly c,, b.,rrl rup. Thus, il is odsicr for a lcasinS conrpany to rcpossess and rccl€plolr aircraft thnn it x,orrld lntercsiinglv, Airbus lndustric, thL' Erro pe.,n dr'.,,ir r.'r\urriLn,. )d- ".1^l l'\l .h.rl lFrn, le,.p,.-.r -ale- lu,J. Ir r.c,rl r'fr. Delta turcl United "bought" aifcrafL from Airbu, o| s.rll ,wdy" lpJ.e. u \i,r rl,rll airylancswith a 30-ycar life could b0 rctumed to the Drnnufncturer nr less tha .r ycar U.S. manufacturors coDplained ihii Airbus can offer such terms onlv because it is subsiclized by the foLrrEuft)pcan countries th.t back the Q,r,:
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lirms genemlly own fixed assets and report them on theh balance sheets, but it is the use of assets that is important, not their ownership per se.One way to obtain
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