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Turbine helicopter dry lease rates

lease turbine

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#1 chris pochari

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Posted 10 February 2018 - 21:29

I've always been curious what lessors charge for various turbine models. I read for fixed wing dry lease rates are usually around 1-1.5% of the aircraft value per month, does this rule of thumb apply to the rotorcraft industry?

How does the percentage rule apply to used aircraft, does it adjust for aircraft age or is it always based on the original purchase price?

I've always found the business side of helicopter operations fascinating!


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#2 chris pochari

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Posted 29 April 2018 - 20:29

Well since no one has answered it: It's anywhere from .75-1.25 percent of the aircraft value per month. 


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#3 overtorque

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Posted 29 April 2018 - 22:33

Why is it the lease rates are lower than fixed-wing?



#4 chris pochari

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Posted 30 April 2018 - 19:13

Why is it the lease rates are lower than fixed-wing?

Hmm.. I read that for fixed wing it's around 1% as well.  



#5 RisePilot

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Posted 01 May 2018 - 13:25

For general reference (financial not aviation industry) the rates noted above are roughly the same as the norm for asset-backed bridge financing which is 80-125 basis points per month.  This would be the range for an asset of 1-5 million value at approximately 70 LTV for 6-24 months.

 

This is an all-in rate and not a margin over 3mo LIBOR which is now quite different for the USD, GBP or EUR (which are now +236, +58 & -35 respectively).

 

So in brief, it seems the dry lease rates are the same as what you could short-term borrow money against the assets.


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#6 chris pochari

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Posted 01 May 2018 - 18:45

For general reference (financial not aviation industry) the rates noted above are roughly the same as the norm for asset-backed bridge financing which is 80-125 basis points per month.  This would be the range for an asset of 1-5 million value at approximately 70 LTV for 6-24 months.

 

This is an all-in rate and not a margin over 3mo LIBOR which is now quite different for the USD, GBP or EUR (which are now +236, +58 & -35 respectively).

 

So in brief, it seems the dry lease rates are the same as what you could short-term borrow money against the assets.

Interesting info, Thanks


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