Aircraft and Aircraft Engines Held for Lease or Sale

9 Months Ended

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

	September 30, 2015		December 31, 2014
Type	Number owned	% of net book value	Number owned	% of net book value
Turboprop aircraft	18	48%	25	52%
Regional jet aircraft	8	47%	8	43%
Engines	5	5%	5	5%

During the third quarter of 2014, the Company recorded net gains totaling $1,809,400 related to the sale of three turboprop aircraft.   There were no such sales during the third quarter of 2015.

During the third quarter of 2015, the Company also extended the leases for two of its turboprop aircraft and leased an engine that was off lease at June 30, 2015. 

Six of the Company's assets held for lease, comprised of three turboprop aircraft and three engines, were off lease at September 30, 2015, representing 5% of the net book value of the Company's aircraft and engines held for lease. 

As discussed in Note 8, during October 2015 the Company sold two turboprop aircraft and recorded a gain of approximately $5,700,000.

(b)Assets Held for Sale

Assets held for sale at September 30, 2015 consist of two turboprop aircraft, two turboprop airframes being sold in parts, and five regional jet aircraft. During the three months ended September 30, 2015 and 2014, the Company received $19,000 and $48,100, respectively, from the sale of parts belonging to the two airframes, which proceeds reduced their carrying values.

As discussed in Note 8, in October 2015, the Company received a deposit and signed a purchase agreement for one of its regional jet aircraft that is held for sale.  The Company expects to deliver the aircraft during the fourth quarter of 2015.