Related Party Transactions

9 Months Ended

Sep. 30, 2015

Related Party Transactions [Abstract]

Related Party Transactions

7.Related Party Transactions

Since the Company has no employees, the Company's portfolio of aircraft and engines 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, and JHC is a principal shareholder of the Company's common stock.

Following a review and negotiation conducted for the Company by a committee of its four independent directors, the Company reached a new ten-year management agreement with JMC in August 2015.  Under the management agreement, JMC continues to receive a monthly management fee based on the net asset value of the assets under management, with newly-added breakpoints in the management fee rate, based on portfolio size.  In return, JMC continues to assume full responsibility for payment for all employee salaries and benefits, outside technical services, worldwide travel needed to promote the Company's business, office space, utilities, IT and communications, furniture and fixtures, and other general administrative and overhead costs.  JMC also receives an acquisition fee for locating assets for the Company and may receive a remarketing fee in connection with the re-lease or sale of the Company's assets. 

Fees incurred during the three months and nine months ended September 30, 2015 and 2014 were as follows:

	For the Nine Months Ended September 30,				For the Three Months Ended September 30,
	2015		2014		2015		2014
Management fees	$	4,260,800	$	3,864,900	$	1,411,100	$	1,205,000
Acquisition fees		-		1,400,000		-		420,000
Remarketing fees		517,600		64,000		93,400		-