Related Party Transactions

3 Months Ended

Mar. 31, 2015

Related Party Transactions [Abstract]

Related Party Transactions

6.Related Party Transactions

The Company’s portfolio of leased aircraft assets is managed and administered under the terms of a management agreement with JetFleet Management Corp. (“JMC”), which is an integrated aircraft management, marketing and financing business and a subsidiary of JetFleet Holding Corp. ("JHC").  Certain officers of the Company are also officers of JHC and JMC and hold significant ownership positions in both JHC and the Company.

Under the management agreement, JMC receives a monthly management fee based on the net asset value of the assets under management. JMC also receives an acquisition fee for locating assets for the Company.  Acquisition fees are included in the cost basis of the asset purchased.  JMC may receive a remarketing fee in connection with the re-lease or sale of the Company’s assets.  Remarketing fees are amortized over the applicable lease term or included in the gain or loss on sale.  Fees paid by the Company to JMC are used by JMC for office rent, worldwide travel, outside technical experts and other overhead expenses, including employee salaries and benefits, since the Company has no employees.

Fees incurred during the three months ended March 31, 2015 and 2014 were as follows:

	For the Three Months Ended March 31,
	2015		2014
Management fees	$	1,433,300		1,327,300
Acquisition fees		-		980,000
Remarketing fees		199,000		64,000