Aircraft and Aircraft Engines Held for Lease or Sale

6 Months Ended

Jun. 30, 2017

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, 2017 and December 31, 2016, the Company's aircraft and aircraft engines held for lease consisted of the following:

	June 30, 2017					December 31, 2016
Type	Number owned		% of net book value			Number owned		% of net book value
Turboprop aircraft		11		21	%		12		23	%
Regional jet aircraft		14		77	%		12		73	%
Engines		1		2	%		4		4	%

The Company used $21,172,700 for the acquisition of two Embraer 175 aircraft on lease to a customer in the United States in the second quarter of 2017.  The Company also paid a $500,000 deposit for a third Embraer 175 aircraft which was acquired in the third quarter of 2017 and is on lease to the same customer.

During the second quarter of 2016, the Company used cash of $963,600 primarily for deposits associated with aircraft acquired during the third quarter of 2016. 

During the second quarter of 2017, the Company sold two spare turboprop engines and recorded a loss of $173,700. 

Six of the Company's assets held for lease, comprised of five turboprop aircraft and one engine, were off lease at June 30, 2017, representing 7% of the net book value of the Company's aircraft and engines held for lease.  As discussed in Note 9, a turboprop aircraft was returned to the Company in August 2017.

As of June 30, 2017, minimum future lease revenue payments receivable under noncancelable operating leases were as follows:

Years ending
Remainder of 2017	$	13,271,400
2018		24,683,000
2019		24,255,200
2020		21,803,000
2021		14,701,600
Thereafter		39,294,700
	$	138,008,900

 (b)Assets Held for Sale

Assets held for sale at June 30, 2017 consist of a turboprop aircraft and turboprop airframe parts from three aircraft.

During the three months ended June 30, 2017 and 2016, the Company received $96,300 and $41,100, respectively, from the sale of parts.  Of such amounts, $70,400 and $41,100, respectively, reduced the carrying value of the parts.  In the 2017 period, the Company received an amount in excess of the carrying value for parts from two of the airframes, and recorded gains totaling $25,900.