Aircraft and Aircraft Engines Held for Lease or Sale

3 Months Ended

Mar. 31, 2016

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 March 31, 2016 and December 31, 2015, the Company's aircraft and aircraft engines held for lease consisted of the following:

	March 31, 2016					December 31, 2015
Type	Number owned		% of net book value			Number owned		% of net book value
Turboprop aircraft		16		45	%		16		45	%
Regional jet aircraft		8		49	%		8		49	%
Engines		5		6	%		5		6	%

During the first quarter of 2016, the Company used no cash for asset acquisitions.  During the first quarter of 2015, the Company used cash of $1,309,800 for costs related to assets acquired in late 2014.

During the first quarter of 2016, the Company repossessed three aircraft that had been on lease to an operator in Asia, and for which the Company had been accounting for lease revenue on a cash basis.   During the quarter, the Company extended the leases for four of its assets.

Nine of the Company's assets held for lease, comprised of six turboprop aircraft and three engines, were off lease at March 31, 2016, representing 7% of the net book value of the Company's aircraft and engines held for lease. 

As discussed in Note 8, in April 2016, one of the Company's turboprop aircraft was involved in an accident and was declared a total loss by the lessee's insurer.

As of March 31, 2016, minimum future lease revenue payments receivable under noncancelable operating leases were as follows.  Such amounts exclude lease revenue related to the Company's aircraft that was declared a total loss in April 2016, discussed above and in Note 8.

Years ending
Remainder of 2016	$	19,380,500
2017		14,823,000
2018		12,188,000
2019		11,107,100
2020		10,407,100
Thereafter		14,609,900
	$	82,515,600

(b)Assets Held for Sale

During the first quarter of 2016, the Company sold two regional jet aircraft that had been held for sale at December 31, 2015.  The Company recorded impairment charges totaling $75,000 for two other regional jet aircraft that were held for sale, based on a reduced sale price.  As discussed in Note 8, the Company sold the two aircraft in April 2016.

Assets held for sale at March 31, 2016 also included a turboprop aircraft and three turboprop airframes being sold in parts. During the three months ended March 31, 2016 and 2015, the Company received $38,800 and $127,000, respectively, from the sale of parts belonging to two of the airframes, which proceeds reduced their carrying values.