Hirokazu Inoue

If an airplane is rented to a customer on month to month contract basis rather than hourly rate with minimum per month, is this considered as a rental or lease?  Is there a regulation that limits long-term rental?  If a plane is rented to someone for a month, is there a regulation or policy in loan or insurance that tells the operator to maintain the airplane's operational control (knowing where the airplane is, etc.)?  What's the line between lease & rent?  We're talking about piston airplanes under 12,500lbs.

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If an airplane is rented to a customer on month to month contract basis rather than hourly rate with minimum per month, is this considered as a rental or lease?  Is there a regulation that limits long-term rental?  If a plane is rented to someone for a month, is there a regulation or policy in loan or insurance that tells the operator to maintain the airplane's operational control (knowing where the airplane is, etc.)?  What's the line between lease & rent?  We're talking ... more

When you finance an airplane with intent to operate it privately (pleasure & business), then later change the purpose of operation to commercial (lease back), are you required to report the change of purpose to the financing company?  I know these companies initially estimate how many hours the airplane flies/year and takes depreciation into consideration when they decide how much to put down & what the rate is.  I'm just comparing this to a house-- initially purchased as a primary residence but later turns into a rental property; I don't hear many people reporting the change of status to their banks.  How does this work on airplanes?

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When you finance an airplane with intent to operate it privately (pleasure & business), then later change the purpose of operation to commercial (lease back), are you required to report the change of purpose to the financing company?  I know these companies initially estimate how many hours the airplane flies/year and takes depreciation into consideration when they decide how much to put down & what the rate is.  I'm just comparing this to a house-- initially ... more