Aircraft and Aircraft Engines Held for Lease or Sale

3 Months Ended

Mar. 31, 2014

Aircraft and Aircraft Engines Held for Lease or Sale [Abstract]

Aircraft and Aircraft Engines Held for Lease or Sale

3. Aircraft and Aircraft Engines Held for Lease or Sale

(a)Assets Held for Lease

At March 31, 2014 and December 31, 2013, the Company’s aircraft and aircraft engines, which were on lease or held for lease, consisted of the following:   

	March 31, 2014					December 31, 2013
	Number		% of net			Number		% of net
Model	owned		book value			owned		book value
Bombardier Dash-8-300		9		20	%		9		23	%
Bombardier CRJ-700		3		17	%		-		-
Fokker 100		7		16	%		7		19	%
Bombardier Dash-8-Q400		3		14	%		3		17	%
Bombardier CRJ-705		1		10	%		1		12	%
Saab 340B Plus		6		8	%		6		8	%
Fokker 50		9		7	%		10		10	%
General Electric CF34-8E5 engine		3		5	%		3		6	%
Saab 340B		3		2	%		4		4	%
Tay 650-15 engine		1		1	%		1		1	%
General Electric CT7-9B engine		2		-			2		-
Saab 340A		1		-			1		-

Net book value excludes the Company’s Saab 340A aircraft and the two General Electric CT7-9B engines, which are subject to finance leases.

During the first quarter of 2014, the Company purchased three Bombardier CRJ-700 aircraft on lease to a customer in the United States, and used cash of $32,225,000 for the purchase and capital improvement of aircraft.  During the first quarter of 2013, the Company used cash of $1,766,400 for the purchase and capital improvement of aircraft and engines.

During the first quarter of 2014, the Company recorded a net gain totaling $391,900 related to the sale of a Fokker 50 aircraft and a Saab 340B aircraft.  During the first quarter of 2013, the Company sold a Fokker 50 aircraft and recorded a gain of $218,200.

During the first quarter of 2014, the Company extended the leases for five of its assets.

At March 31, 2014, thirteen of the Company’s assets, comprised of three Fokker 50 aircraft, one Dash-8-311 aircraft, one Saab 340B aircraft, six Fokker 100 aircraft, one General Electric CF34-8E5 engine and one Tay 650-15 engine, which represented 20% of the net book value of the Company’s aircraft and engines, were off lease.

As discussed in Note 8, the Company sold a Saab 340B aircraft in April 2014.  The Company has a purchase agreement and 100% deposit for the sale of another Saab 340B aircraft.  The Company has a signed purchase agreement and non-refundable deposit for sale of one of its off-lease Fokker 50 aircraft.  The Company is seeking re-lease opportunities for the other off-lease assets, other than the Tay 650-15 engine that is being held as a spare and used in connection with required maintenance on the Company’s Fokker 100 aircraft.

(b)Assets Held for Sale

Assets held for sale include two airframes.  During the three months ended March 31, 2014 and 2013, the Company received $215,200 and $36,000, respectively, from the sale of parts belonging to the two airframes.  No adjustments to the carrying value of the Company’s assets held for sale were recorded during the three months ended March 31, 2014 and 2013.