Leaseback Agreement


In the context of aviation, a Leaseback Agreement refers to a financial arrangement where an aircraft owner sells their aircraft to a company or an individual and then leases it back from them. This arrangement allows the aircraft owner to retain the use of the aircraft while also freeing up capital. The leaseback agreement is often used in the aviation industry as a way to finance the purchase of new aircraft or to reduce the financial burden of owning an aircraft. The terms of the leaseback agreement can vary widely, but typically include the duration of the lease, the monthly lease payment, and the responsibilities of both parties for maintenance and repairs. The leaseback agreement may also include provisions for the lessee to purchase the aircraft at the end of the lease term. This type of agreement can be beneficial for both parties, as the lessee gets to use the aircraft without the upfront cost of purchasing it, and the lessor gets a steady stream of income from the lease payments.


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