Airlines net high gains on lease and sale planes

Non-Aeronautical income for airlines is not just the money made from selling advertising space or water bottles, but also the profits recorded on sale and lease-back of aircraft.
Jet Airways, Air Deccan and SpiceJet have all recorded significant gains from sale and lease-back in the last fiscal. While Jet has sold old aircraft, the other two players have sold new aircraft just off the assembly line.
On a per aircraft basis, Jet has also recorded significantly higher gains. Given the large number of aircraft on order with the Indian carriers, this could be a significant revenue stream, going forward, and see the share of non-aeronautical income increase. For some foreign carriers like Ryan Air, ancillary income is as high as 23% of the turnover.
Investec, GE and the Royal Bank of Scotland are amongst the agencies that are in the aircraft purchase and leasing business.
Jet Airways recorded a gain of Rs 271 crore on this account, which allowed the airline to post a 15% increase in bottomline during FY06 to Rs 452 crore.
17/05/06 Amit Bhandari/Economic Times

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