Aircraft and Aircraft Engines Held for Lease or Sale

12 Months Ended

Dec. 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 December 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:

	December 31, 2014					December 31, 2013
	Number		% of net			Number		% of net
Model	owned		book value			owned		book value
Bombardier Dash-8-300		8		17	%		9		23	%
Bombardier CRJ-700		3		16	%		-		-
Bombardier CRJ-900		2		16	%		-		-
Bombardier Dash-8-Q400		3		13	%		3		17	%
ATR 42-600		1		9	%		-		-
Bombardier CRJ-705		1		9	%		1		12	%
Saab 340B Plus		6		7	%		6		8	%
Fokker 50		6		5	%		10		10	%
General Electric CF34-8E5 engine		2		4	%		3		6	%
Fokker 100		2		3	%		7		19	%
Saab 340B		1		1	%		4		4	%
Tay 650-15 engine		1		-			1		1	%
General Electric CT7-9B engine		2		-			2		-
Saab 340A		-		-			1		-

Assets subject to finance leases are not included in the net book value of assets held for lease.  Therefore, the Company’s single Saab 340A aircraft and two General Electric CT7-9B engines, which were subject to finance leases in 2013, are not included in the net book value calculation as of December 31, 2013.

During 2014, based on appraised values, the Company recorded impairment charges on assets held for lease totaling $2,906,400 and $217,800 on two Fokker 100 and two Fokker 50 aircraft, respectively.

During 2014 and 2013, the Company used cash of $74,529,000 and $24,965,500, respectively, for the purchase and capital improvement of aircraft and engines.

During 2014, the Company recorded net gains totaling $3,147,200 from the sale of three Fokker 50 aircraft, five Saab 340B aircraft, one Bombardier Dash-8-300 aircraft and one General Electric CF34-8E5 engine.  During 2013, the Company recorded net gains totaling $4,504,200 from the sale of three Fokker 50 aircraft, a deHavilland DHC-8-100 aircraft, a deHavilland DHC-6 aircraft and a General Electric CT7-9B engine.  The Company also leased an engine pursuant to a finance lease in 2013 and recorded a gain of $73,300.  In addition, the Company recorded a loss of $769,300 in 2013 on the disposal of a Tay 650-15 engine, which was replaced by one of the Company's spare engines.

During 2014, the Company extended the leases for nine of its assets and leased two assets that had been off lease at December 31, 2013.

In May 2014, six Saab 340B Plus aircraft and two General Electric CT7-9B engines were returned by a customer when it ceased operations.  Two of the aircraft have been re-leased.

(a)Assets Held for Lease (continued)

Ten of the Company’s assets that are held for lease were off lease at December 31, 2014, representing 10% of the net book value of the Company’s aircraft and engines held for lease.  Such assets were comprised of four Saab 340B Plus aircraft, one Saab 340B aircraft, and five engines.

(b)Assets Held for Sale

Assets held for sale include two Saab 340B airframes, which are being sold in parts, as well as five Fokker 100 aircraft and a Fokker 50 aircraft.

During 2014 and 2013, the Company received $312,100 and $945,100, respectively, from the sale of parts belonging to the two airframes, which proceeds reduced their carrying value.

During 2014, the Company recorded impairment charges totaling $15,278,900 and $333,400 related to five Fokker 100 aircraft and one Fokker 50 aircraft, respectively. At December 31, 2014, five of the Fokker 100 aircraft and one of the Fokker 50 aircraft were classified as held for sale on the Company's balance sheet.  As discussed in Note 13, the Company sold the Fokker 50 aircraft in March 2015.