A new way to fly: the benefits of a long-term aviation lease.

Pioneers in the aviation industry have recently introduced a unique concept with regard to hangar space for corporate aircraft that provides tenants with virtually all the benefits of ownership.

Technically, no one can own the land on most public airports, since the property is owned by a government entity, usually the county in which the airport resides. As such, until recently rental agreements have dominated the aviation landscape. A typical rental agreement at a Southern California fixed-base operator is year-to-year, many are even month-to-month, leaving tenants to deal with instability and escalating costs.

"Unlike renting, a long-term lease allows tenants to have all the benefits of ownership for hangar and office space," said Richard Lee Sax, president of Premier Jet, an FBO located at McClellan Palomar Airport in Carlsbad. "This concept is new to the aviation industry and to FBOs in particular:'

Fixed Prices, Lower Costs

The first and perhaps most compelling advantage of long-term leasing is cost.

"A pre-paid lease program allows tenants to be insulated from ever-spiraling rental charges," said Sax. "Tenants can lock in their hangar and/or office rents for 30 years. It's a win-win proposition."

Many FBOs also provide a reduced fuel rate to their long-term lessors. Sax estimated that depending on cost-of-living increases, a tenant could expect to pay two- to four-times more through a rental agreement than through leasing.

"It's just like financing a home and keeping the payments fixed at today's market," said Sax. "All those ownership advantages are built-in. You can build equity in the property without worrying about rental increases."

The Right to Re-sell or Re-lease

Another compelling attribute of owning property is the ability to lease it or re-sell it, and long-term lease agreements make this an option for tenants as well.

"A long-term lease holder may sub-lease or sell his interest to anybody he wants, anytime he wants," said Sax.

The long-term nature of the agreement also allows individuals to make improvements to their property, without needing to ask a landlord's permission.

"These options just aren't available to renters," said Sax.

Convenience and Stability

Some lease agreements combine office and hangar space, which appeals to time-crunched executives.

"Time is everything to the corporate traveler," said Sax. "Time is the sole reason you pay the premium for private jet travel. That convenience factor is multiplied when the plane is in close proximity to the office. When an organization leases a hangar and office combo, executives can fly to a business meeting and upon their return be only seconds from their office."

The stability of a long-term lease is another compelling feature.

"Renters often see their aircraft sitting on a tarmac when it should be hangared. With a long-term lease, you'll know you'll always have access to your own private hangar," said Sax.

Information for this article was provided by Premier Jet. For more information, visit www.premierjet.com