Aircraft and Aircraft Engines Held for Lease or Sale

6 Months Ended

Jun. 30, 2015

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 June 30, 2015 and December 31, 2014, the Company's aircraft and aircraft engines held for lease consisted of the following:

	June 30, 2015					December 31, 2014
Type	Number owned		% of net book value			Number owned		% of net book value
Turboprop aircraft		21		49	%		25		52	%
Regional jet aircraft		8		46	%		8		43	%
Engines		5		5	%		5		5	%

During the second quarter of 2014, the Company recorded a net gain of $762,500 related to the sale of three turboprop aircraft and an engine.   There were no such sales during the second quarter of 2015.

During the second quarter of 2015, the Company extended the lease for one of its turboprop aircraft and leased an engine that was off lease at March 31, 2015. 

Eight of the Company's assets, comprising four turboprop aircraft and four engines were off lease at June 30, 2015, representing 7% of the net book value of the Company's aircraft and engines held for lease.  The Company has a signed lease and deposit for one of the aircraft and expects to deliver it pursuant to a finance lease during the third quarter of 2015.

During the second quarter of 2015, based on its appraised value, the Company recorded an impairment charge of $147,500 for a turboprop aircraft.  No adjustments to the carrying value of the Company's assets held for lease were recorded during the three months or six months ended June 30, 2014.  

(b)Assets Held for Sale

During the second quarter of 2015, the Company reclassified two turboprop aircraft to held for sale.  Assets held for sale at June 30, 2015 consist of those two aircraft, two turboprop airframes, which are being sold in parts and five regional jet aircraft. During the three months ended June 30, 2015 and 2014, the Company received $129,400 and $10,500, respectively, from the sale of parts belonging to the two airframes, which proceeds reduced their carrying values.

No adjustments to the carrying value of the Company's assets held for sale were recorded during the three months or six months ended June 30, 2015.  On June 30, 2014, the Company recorded a $6,800,000 impairment charge on its five regional jet aircraft that are held for sale.