Turbine helicopter dry lease rates

[chris pochari]

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!

[chris pochari]

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

[overtorque]

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

[chris pochari]

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

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

[RisePilot]

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.

[chris pochari]

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