aircraft leases

[USFlyer]

My understanding with the Airbus aircraft is US bought them from Airbus at below market rates and then sold many of them to leasing companies at market rates, thus pocketing the difference. Also, just "buying" something doesn't mean you own it outright -- there could be a mortgage on the aircraft, of which all of U's owned aircraft have at this point, I believe.

 

[fr8tmastr]

I just read on another post that a certain 737 was bought then sold to a leasing co. then leased back. Why is this done? it seems to me that if U had just kept the aircraft the only costs associated with it would be the operating costs. What am I missing here?

 

[JFK777]

Given the Capital Expeditures of an Airline, leasing is more efficient then having millions tide up in metal. When the loan for purchase is paid off an airline usually sells an airplane to a leasing firm to have the money in cash, PanAm survived for years doing this. They mortaged and paid back the loans on their 747's many times per aircraft. Buying an airbus at a "discount" and selling it at the market rate to a leasing firm, is standard practice. If an airline like, Icelandair can get a discount for a few 757's USAIR certainly can REALLY get a BIG discount when buying 200 airbus planes.