Aircraft and Aircraft Engines Held for Lease or Sale

3 Months Ended

Mar. 31, 2015

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

Aircraft and Aircraft Engines Held for Lease or Sale

2.Aircraft and Aircraft Engines Held for Lease or Sale

(a)Assets Held for Lease

At March 31, 2015 and December 31, 2014, the Company’s aircraft and aircraft engines, which were on lease or held for lease, consisted of the following:

	March 31, 2015					December 31, 2014
Type	Number owned		% of net book value			Number owned		% of net book value
Turboprop aircraft		25		51	%		25		52	%
Regional jet aircraft		8		44	%		8		43	%
Engines		5		5	%		5		5	%

Assets subject to finance leases are not included in the net book value of assets held for lease, but are included in the number of aircraft owned.  Therefore, one of the Company's turboprop aircraft, which the Company re-leased pursuant to a finance lease during the first quarter of 2015, is not included in the net book value calculation as of March 31, 2015.

During the first quarters of 2015 and 2014, the Company used cash of $1,309,800 and $32,225,000, respectively, for the purchase and capital improvement of aircraft.

During the first quarter of 2015, the Company leased a turboprop aircraft pursuant to a finance lease and recorded a gain of $1,401,900.  During the first quarter of 2014, the Company recorded a net gain totaling $391,900 related to the sale of two turboprop aircraft.  

During the first quarter of 2015, the Company extended the leases for three of its assets.

Ten of the Company’s assets that are held for lease were off lease at March 31, 2015, representing 10% of the net book value of the Company’s aircraft and engines held for lease.  Such assets are comprised of five turboprop aircraft and five engines.

No adjustments to the carrying value of the Company’s assets held for lease were recorded during the three months ended March 31, 2015 and 2014.

(b)Assets Held for Sale

Assets held for sale at March 31, 2015 include two turboprop airframes, which are being sold in parts, and five regional jet aircraft.  During the three months ended March 31, 2015 and 2014, the Company received $127,000 and $215,200, respectively, from the sale of parts belonging to the two airframes, which proceeds reduced their carrying values.

During March 2015, the Company sold an older turboprop aircraft, which was held for sale at December 31, 2014, and recorded a gain of $460,000.

No adjustments to the carrying value of the Company’s assets held for sale were recorded during the three months ended March 31, 2015 and 2014.