Aircraft and Aircraft Engines Held for Lease or Sale

12 Months Ended

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

	December 31,2016					December 31,2015
Type	Number owned		% of net book value			Number owned		% of net book value
Turboprop aircraft		12		23	%		16		45	%
Regional jet aircraft		12		73	%		8		49	%
Engines		4		4	%		5		6	%

During 2016 and 2015, the Company used cash of $54,357,600 and $1,333,700, respectively, for the purchase and capital improvement of aircraft and engines.  At the time of purchase, the Company received $17,179,300 of maintenance reserves related to two aircraft; such reserves are reflected as a deduction in the amount of cash used for purchases and related acquisition costs in the investing activities section of the Company’s statement of cash flows for the year ended December 31, 2016.

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.  In 2015, the Company accrued a receivable for $1,246,700 of insurance proceeds related to damage sustained on another aircraft in 2015 and received the proceeds in 2016.

During 2015, the Company recorded net gains totaling $5,713,600 from the sale of two turboprop aircraft.

During 2016, the Company extended the leases for six of its assets held for lease.  The Company also leased two assets that had been off lease at December 31, 2015 and an aircraft that was returned during 2016.

Six of the Company's assets held for lease, comprised of four turboprop aircraft and two engines, were off lease at December 31, 2016, representing 7% of the net book value of the Company's aircraft and engines held for lease.  As discussed in Note 13, the Company sold one of the turboprop aircraft under a sales-type finance lease in January 2017.  As discussed in Note 13, the Company has a signed lease and deposit for another of the turboprop aircraft and expects to deliver the aircraft during the first quarter of 2017.

As of December 31, 2016, minimum future lease revenue payments receivable under noncancelable operating leases were as follows:

Years ending
2017	$	26,505,700
2018		22,727,900
2019		22,299,700
2020		19,665,200
2021		12,343,000
Thereafter		30,908,100
	$	134,449,600

 (b)Assets Held for Sale

Assets held for sale at December 31, 2016 consist of a turboprop aircraft and three turboprop airframes being sold in parts.

During 2016 and 2015, the Company received $175,300 and $313,800, respectively, from the sale of parts belonging to the airframes, which proceeds reduced the airframe's carrying values.  During 2016, the Company received an amount in excess of the carrying value for one of the airframes, and recorded a gain of $3,100.

During 2016, the Company sold four regional aircraft that had been held for sale at December 31, 2015, as well as a spare engine that had been written down by $246,200 to its net sales price and classified as held for sale.   The Company recorded impairment charges totaling $75,000 for two of the aircraft, based on a reduced sale price.

During 2015, the Company sold a turboprop aircraft and a regional jet aircraft that had been held for sale at December 31, 2014 and recorded gains totaling $1,077,100.