Hi
Before I commit, I want to make sure I understand something is allowed:
I have a subsidiary with some cash currently flying an all leased fleet. My parent company is currently a shell company with 0 employees and $0.
- If I buy one of my leased aircraft can I transfer it to my parent company to lease back to the subsidiary to generate income for the parent?
- I assume that by doing this I need to offer the aircraft on the open market for the 1 hour period, and the subsidiary bids and there is the possibility another player out-bids?
Thanks
Thanks- I get I can transfer owned aircraft subsidiary->parent for free, but can the parent then lease the aircraft to the subsidiary (i.e so my subsidiary pays the leasing to the parent)? Does this run through the open market?
You can directly use sales and lease back for your aim. So no need to transfer it and then lease it back. That will also keep the current flight plan and flights.
But then the parent would have to buy the aircraft at retail rate from the subsidiary no?
That’s true. The option to transfer and lease back doesn’t exit.
Cool, thanks. So it sounds like I transfer the aircraft to the parent company, then the parent company leases it on the open market, then my subsidiary leases it from the parent via the open market.
Nope. I can't remember the actual term but...
- Cancel flight plan
- Transfer aircraft for free from Sub to parent (asset management)
- Parent then leases aircraft straight to sub (asset management) no need for open market
- Re apply flight plan
Nope. I can't remember the actual term but...
- Cancel flight plan
- Transfer aircraft for free from Sub to parent (asset management)
- Parent then leases aircraft straight to sub (asset management) no need for open market
- Re apply flight plan
‘Asset transfer without compensation’ from the child, and plain old ‘leasing’ from the parent’s side.
As everything is happening within the umbrella of your control, and are all of the same initial AS$10million seed money, then it shouldn’t involve the used market. On the asset management screen, there’s a tab labelled ‘Aircraft Transfer’ where both functions are found.
make sure you are generating enough money with the leasing contract. your parent company will hire (I think around 20) staff for fleet management, that have to be paid at weekend closing. also make sure you turned off automatic hiring of pilots for the parent company.