What is a Leaseback?
A leaseback is a management agreement. Under this agreement, Horizon Flight Center, L.L.C. (HFC) serves in the role of asset manager. The aircraft is owned by the individual, while HFC is responsible for marketing the aircraft, introducing qualified and well trained pilots, managing all financial transactions, coordinating maintenance and ensuring the aircraft meets all regulatory requirements.
Why leaseback with Horizon Flight Center?
HFC is a seasoned flight school with over 21 years in the aviation business. We have a well-established customer base and reach a wide demographic. HFC’s philosophy revolves around a basic commitment to excellence. This applies not only to flight instruction but also to all aspects of our business, including our aircraft fleet.
How does a leaseback work?
The leaseback is a management agreement involving an aircraft you own. You provide us with your airplane. We collect all the revenue. We pay all the expenses. At the end of each month we cut you a check if revenue exceeds expenses. If expenses exceed revenue, we send you a bill. We take care of everything, so you don’t have to worry about the details of aircraft ownership. In exchange for our services, we charge a modest management fee. Of course, just like all other expenses, the management fee is deducted from the revenue.
Leasebacks are highly variable investments and are not for everyone. The decision to put an aircraft into a leaseback should be considered carefully. We track the financial performance of all our aircraft, and have detailed historical data to help make informed decisions. If you think a leaseback is something you might consider, please contact us for more information. We’ll be happy to work with you to predict the revenue, expense and overall performance of your aircraft in our fleet. We can also help you purchase the right aircraft and set your aircraft’s rental rate to maximize your profits. We simply cannot be successful unless our aircraft owners are too.
When does a leaseback make sense?
While everyone's personal situation is different, here are just some of the reasons to consider putting an airplane on leaseback:
- You want to own an airplane, but you can't afford to own it outright.
- You are in a position to take advantage of the tax advantages of owning an airplane.
- You own an airplane, but it is not flying enough. Airplanes should be flown regularly to keep them healthy.
- You want to make your aircraft an asset instead of a liability.
- You would like to reduce your flying costs.
- You have some specific training objectives, and would rather pay yourself for training, rather than someone else.
- You have multiple family members that want to learn to fly.
- You want to be in the aviation business.