Why Lease?

Lease Purchase

CASHFLOW

There are no setup or equity payments with a Heavy Jet Helicopter Leasing lease. You only pay for usage and your costs are directly related to hours flown therefore directly related to your income.

CASHFLOW

When you purchase a new helicopter there is a significant deposit required typically 10- 20% which remains in the vendors possession for up to 6 months or until the helicopter is delivered.

When you finance a helicopter all your equity portions, including deposit, are tied up in the machine and you therefore loose the use of what is a substantial amount of working capital.

PLANNING AND BUDGETING

Not only are the checks paid for by Heavy Jet Helicopter Leasing but if the machine is out of service for a long period another machine could be bought in to take its place.

One of the biggest costs in owning your own machine can be hidden from plain view, foreign exchange rates.

These, as most can attest, can vary and in recent times there have been wild fluctuations which affects not only maintenance costs but also alters your equity substantially.

This risk is not relevant with leasing.

PLANNING AND BUDGETING

Typically helicopters require service every 100 hours and during this service various faults can be identified which can result in the machine being grounded for unknown periods which cannot be budgeted for and will result in a loss of production. Extremely variable running costs can therefore occur.

TAX

Lease costs are immediately tax deductible.

TAX

Purchase costs have to be claimed by way of depreciation over the estimated useful life and has the possible implication of taxable deprecation recovered on sale of helicopters owned.

CREDIT LINE IMPACT

Leasing will provide you with the same usage of the helicopter and have no impact on your credit line.

You use the machine as needed and pay as you go.

CREDIT LINE IMPACT

When you purchase from a lender you are significantly reducing your line of credit and the ability to obtain loans for other equipment e.g. vehicles, office, etc.

VERSATILITY

Helicopter operators needs often change, with a lease you can add and subtract equipment you may or may not need. If the need arises you can upgrade or downgrade your helicopter. Nothing is set in concrete, it is your needs as an operator that are important to Heavy Jet Helicopter Leasing.

VERSATILITY

When you purchase, changing machine type is not an easy task, organisationally nor financially. You may have to continue with a machine that is no longer the most cost effective nor productive way of operating your business.

HELICOPTER OVERHAUL

All expenses involved with the overhaul are paid for by Heavy Jet Helicopter Leasing and, subject to availability a replacement machine will be made available.

HELICOPTER OVERHAUL

Using a R44 as an example at 2200 hrs the helicopter needs a major overhaul these typically cost around $275,000.00 and can take up to 4 months to complete.

Turbine Helicopters also have major componentry (i.e. turbines/transmissions) which require overhaul at considerable expense.