Aircraft and Aircraft Engines Held for Lease or Sale

6 Months Ended

Jun. 30, 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 June 30, 2016 and December 31, 2015, the Company's aircraft and aircraft engines held for lease consisted of the following:

	June 30, 2016					December 31, 2015
Type	Number owned		% of net book value			Number owned		% of net book value
Turboprop aircraft		14		39	%		16		45	%
Regional jet aircraft		8		55	%		8		49	%
Engines		4		6	%		5		6	%

During the second quarter of 2016, the Company used cash of $963,600 primarily for deposits associated with anticipated future acquisitions.  During the second quarter of 2015, the Company paid $23,900 for costs related to assets acquired in late 2014.

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.  The Company received insurance proceeds of $17,640,000 in May 2016 and recorded a gain of $2,146,500.  The Company also received insurance proceeds of $1,246,700 related to damage sustained on another aircraft in 2015.

During the second quarter of 2016, the Company extended the lease for one of its assets and leased two engines that were off lease at March 31, 2016.

Six of the Company's assets held for lease, comprised of five turboprop aircraft and one engine, were off lease at June 30, 2016, representing 8% of the net book value of the Company's aircraft and engines held for lease.  As discussed in Note 8, the Company entered into sales-type finance leases for two of its off-lease turboprop aircraft and expects to deliver the aircraft during the third quarter..

As of June 30, 2016, minimum future lease revenue payments receivable under noncancelable operating leases were as follows:

Years ending
Remainder of 2016	$	9,504,400
2017		16,259,000
2018		12,218,900
2019		11,528,100
2020		10,407,100
Thereafter		17,211,700
	$	77,129,200

(b)Assets Held for Sale

During the second quarter of 2016, the Company sold two regional jet aircraft that had been written down to their net sales values and were held for sale at December 31, 2015. 

Assets held for sale at June 30, 2016 included a turboprop aircraft and three turboprop airframes being sold in parts. During the three months ended June 30, 2016 and 2015, the Company received $41,100 and $129,400 respectively, from the sale of parts belonging to two of the airframes, which proceeds reduced their carrying values.