Commercial Aircraft Sales and Leasing
Encyclopedia
Commercial Aircraft Sales and Leasing (CASL) is a common phrase used to describe organizations which typically market used commercial airliners and related equipment to governments and other various customers from manufacturers such as Airbus
and Boeing
as a primary function. CASL companies are often referred to as aircraft lessors.
Small startup airlines which are usually not in a financial position to afford brand-new factory-direct aircraft, or established carriers who prefer to maintain flexibility by leasing rather than owning their aircraft, will typically work with a CASL company to locate and procure used aircraft for lease or finance. The aircraft may be provided to the airline on the basis of an operating lease or a finance lease
.
A number of commercial banks, hedge fund
s and financial institutions are active in the aircraft leasing business: the two largest and best-known CASL companies are General Electric Commercial Aviation Services
(GECAS) and International Lease Finance Corporation
(ILFC). Their independent revenues rank into the billions of dollars.
Airbus
Airbus SAS is an aircraft manufacturing subsidiary of EADS, a European aerospace company. Based in Blagnac, France, surburb of Toulouse, and with significant activity across Europe, the company produces around half of the world's jet airliners....
and Boeing
Boeing
The Boeing Company is an American multinational aerospace and defense corporation, founded in 1916 by William E. Boeing in Seattle, Washington. Boeing has expanded over the years, merging with McDonnell Douglas in 1997. Boeing Corporate headquarters has been in Chicago, Illinois since 2001...
as a primary function. CASL companies are often referred to as aircraft lessors.
Small startup airlines which are usually not in a financial position to afford brand-new factory-direct aircraft, or established carriers who prefer to maintain flexibility by leasing rather than owning their aircraft, will typically work with a CASL company to locate and procure used aircraft for lease or finance. The aircraft may be provided to the airline on the basis of an operating lease or a finance lease
Finance lease
A finance lease or capital lease is a type of lease. It is a commercial arrangement where:* the lessee will select an asset ;* the lessor will purchase that asset;...
.
A number of commercial banks, hedge fund
Hedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
s and financial institutions are active in the aircraft leasing business: the two largest and best-known CASL companies are General Electric Commercial Aviation Services
GE Commercial Aviation Services
GECAS is a unit of GE Capital, itself part of the large conglomerate General Electric. The president of GECAS is Norman Liu. GECAS is responsible for the leasing of aircraft and associated equipment to airlines...
(GECAS) and International Lease Finance Corporation
International Lease Finance Corporation
The International Lease Finance Corporation is an aircraft lessor headquartered in Century City, Los Angeles, California.It is the world's largest aircraft lessor by value, though ILFC's rival, General Electric's GECAS unit, has more aircraft...
(ILFC). Their independent revenues rank into the billions of dollars.