Below are the 2 most recent journal entries recorded in roscoemacias821's InsaneJournal:

Sunday, February 5th, 2012
12:09 am	Borrowing To Fly Are you trying to purchase a plane, heli-copter or glider? If so, odds are you're either soaking in cash or do not have nearly enough. Don't be concerned if it's the latter: If your credit is excellent, you could always borrow the money. Just like home loans and car loans, aircraft loans are financing schemes that permit people and organizations, including airlines, to buy and operate aircraft. Given the very high cost of most aircraft, airplane loans are very common in the world of air travel, both commercial and private. Many aircraft loans are relatively simple while others are more complicated. At the simple end are loans for private and business aircraft; at the complex end are the loans industrial airlines use to purchase their aircraft fleets. The easiest loans are those used for corporate and private aircraft; the more complex are used by business airlines to buy and maintain their fleets. The less difficult loans are more like auto loans or home mortgages, while the complex loans are more much like maritime or project financing. Here is how a private loan procedure usually works. The very first step is to offer the lender (probably a bank or financing firm) data about yourself and the airplane you are planning to buy. Next, the lender appraises the aircraft's value and performs a title search to ensure the plane is owned free and clear and can change hands without problems. A security contract is then prepared, providing the lender a security interest in the plane, along with a promissory note which holds you personally accountable for the remainder of the loan in case repossession of the aircraft doesn't cover the full balance. A surety, much like a co-signor, might be required if you have questionable credit. If you've shaky credit, the lender might also need a surety, similar to a co-signor. This easy loan plan is sufficient for those purchasing private and business aircraft, which are comparatively cheap compared to larger aircraft. The big jets flown by commercial airlines, by comparison, are extremely expensive. In 2011, Boeing priced its 747 passenger and carrier jets at $333 million, while airlines don't typically pay the full price. There're 3 common methods used by airlines to finance their fleets: direct lending, operating leasing and financing leasing. Cash payments, tax leases as well as manufacturer assistance are alternative options. Direct lending directly resembles the traditional aircraft loan scheme used by private and corporate owners, but on a bigger scale. In this case, numerous banks sometimes contribute to one airline's loan. As with private owners, airlines typically need to give their lenders a secured interest in the aircraft so that it can be repossessed if the loans are not repaid. With operating leasing, rather than direct lending, the airlines do not get ownership of the aircraft. In this type of aircraft loan, air carriers lease their aircraft from Commercial Aircraft Sales and Leasing organizations, businesses that lease used aircraft and equipment to airlines. These leases are typically short term, no longer than ten years, and they are most attractive to small airlines and start up ventures because costs are reduced and the airlines don't need to hold onto the aircraft beyond its usefulness. The third kind of aircraft loan used by airlines, known as finance leasing, is basically a more complex kind of operating leasing. Using debt and equity funding, 3rd parties (partnerships or special purpose companies) buy aircraft and lease them to airlines. In many cases the airline is given the option to purchase the aircraft when the lease expires, or is given automatic ownership. Aircraft Loans (Comment on this)
12:07 am	Aircraft Loans Keep Us In The Air Are you in the market for an aircraft? If yes, odds are you are either soaking in cash or do not have nearly sufficient. If it's the latter, don't worry: You might be able to borrow the money. Aircraft loans are financing arrangements, much like home or car loans, that permit people and companies to buy and use aircraft. Given the very high cost of the majority of aircraft, aircraft loans are extremely common in the world of air travel, both commercial and private. Aircraft loans vary from the relatively simple to the complex. At the simple end are loans for private and corporate aircraft; at the complex end are the loans commercial airlines use to buy their aircraft fleets. The easiest loans are those used for corporate and private aircraft; the more complex are used by business airlines to purchase and maintain their fleets. The easy schemes appear like auto loans and home mortgages, while the more complicated plans look like maritime and project financing. Here is a look at how it works when you use a loan to buy a private or business aircraft. First, you give the lender (most probably a bank or aircraft financing company) basic information about yourself and the plane you desire to buy. The lender takes the next step, evaluating the value of the plane and conducting a search of the aircraft's title to guarantee it is owned free and clear. A security arrangement is then prepared, giving the lender a security interest in the airplane, along with a promissory note which holds you personally accountable for the rest of the loan in case repossession of the aircraft does not cover the full balance. A surety, just like a co-signor, might be required if you've questionable credit. If you have shaky credit, the lender might also require a surety, much like a co-signor. This easy loan scheme is sufficient for those purchasing private and corporate aircraft, that are relatively inexpensive in comparison to larger aircraft. The large jets flown by business airlines, by contrast, are very costly. In 2011, Boeing priced its 747 passenger and carrier jets at $333 million, while airlines do not typically pay the full price. There are three common methods used by air carriers to finance their fleets: direct lending, operating leasing and financing leasing. Cash payments, tax leases and manufacturer assistance are alternative options. Direct lending is just like the conventional aircraft loans given to private owners, just on a bigger scale. This often involves numerous banks chipping in to create a single loan for an airline. Here, as with private aircraft loans, lenders normally demand a security interest in the aircraft thus they can repossess it if the loans go unpaid. Operating leasing, as opposed to direct lending, doesn't grant ownership to the aircraft's users. The airlines instead lease used aircraft from so called Commercial Aircraft Sales and Leasing organizations, or aircraft lessors. These leases are generally short term, no more than 10 years, and they're most attractive to small airlines and start-up ventures since costs are decreased and the airlines do not have to hold onto the aircraft beyond its usefulness. The third kind of aircraft loan used by airlines, referred to as finance leasing, is basically a more complicated kind of operating leasing. Using debt and equity financing, third parties (partnerships or special purpose companies) buy aircraft and lease them to airlines. Often the airline has automatic ownership, or the option to purchase, when the lease expires. Aircraft Loans (Comment on this)