Hong Kong leveraged lease: In Hong Kong, where income taxes are low in comparison to other countries, leveraged leasing to local operators is common. In such transactions, a locally incorporated lessor acquires an aircraft through a combination of non-recourse debt, recourse debt, and equity (generally in a 49-16-35 proportion), and thus be able to claim depreciation allowances despite only being liable for half of the purchase price. Its high tax losses can then be set off against profits from leasing the aircraft to a local carrier. Due to local tax laws, these investments are set up as general partnerships, in which the investors' liability is mainly limited by insurance and by contract with the operator.
No trip is alike. At XOJET we work with clients to select the right aircraft for each mission, the savviest method to flying smart. We believe in delivering the most value on every flight, which typically begins with selecting the right aircraft for the right mission. Each step of the way, your Aviation Advisor is committed to meeting your specific needs by presenting the most complete range of options and finding the best solution for your trip.
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