Very few travelers think about who actually owns the aircraft they are about to board while heading to their vacation, journey or much awaited getaway. Most of these passengers assume the airline owns the jet outright. This is more so because, after all, the airline has painted the jet using their own colors and logos that passengers have come to love. But did you know that what you are about to board is actually an aircraft for rent?
This is because some airlines will rather rent the aircraft than buying it outright. Renting an aircraft is actually leasing it, the same way one would lease a car instead of buying it. Whereas for car buyers can buy a vehicle and then finance it over a certain period in which they will own it outright, airlines on the other hand either pay cash and take immediate ownership or just lease and then return the jet to the lessor at the end of the lease period.
Why Airlines Choose Aircraft for Rent vs Aircraft for Sale and Vice Versa?
In most cases, airlines choose aircraft for rent versus buying it outright when they are facing financial constraints. This is because it costs more money to buy an aircraft right now while it cost a fraction of that per month to lease it. There are numerous aircraft leasing companies out there such as AerCap Holdings N.V. that offer a variety of planes for rent from various manufacturers. These jets vary per size, range and even types of propellers or engines used.
Whereas an aircraft like the Boeing 747-8i will cost about $418 to buy, the same jet can cost as less as $150,000 per month to lease, depending on the age of the aircraft, flight hours and flight circles. The much older version of the same jet such as the 747-400 and the 747-200 can even cost less than $50,000 per month when leased.
It is worth noting that more than half (that is 51%) of the world’s nearly 23,000 single- and double-aisle airliners are owned or managed by leasing firms, according to aviation consulting firm Cirium. While many airlines do own their aircraft, some carriers choose to rent planes instead, or combine the two.
Below is a list of the most popular aircraft for rent in U.S. dollars. The price is per month until the lease period expires after which the aircraft ownership will return to lessor.
How Much It Costs Per Month To Lease Various Aircraft in 2022.
Starting with narrow-bodied jets, a brand new Boeing 737-MAX-8 costs $316,000 per month to rent while its competitor, the Airbus A320 costs $324,000 per month. The prices for these Boeing and Airbus jets have increased for 20% and 14% respectively for the two aircraft types compared to their monthly rental prices in the year 2020.
In 2022, an older (about 10 years old) Boeing 737-800 jet goes for $169,000 to rent monthly whereas its older competitor, the Airbus A320 of similar age goes for $147,000 to rent monthly.
The newest Airbus A321neo goes for $375,000 to rent monthly when purchased brand new from the manufacturer. The same Airbus A321 (current engine option) jet that is about 10 years old now goes for $196,000 to rent monthly.
