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Operating Lease As A Specific Form Of Airlines Outsourcing

Author

Listed:
  • Eva Endrizalova

    (University of Pardubice, Faculty of Transport Engineering, Department of Transport Management, Marketing and Logistics)

  • Martin Novak

    (University of Pardubice, Faculty of Transport Engineering, Department of Transport Management, Marketing and Logistics)

  • Vladimir Nemec

    (University of Pardubice, Faculty of Transport Engineering, Department of Transport Management, Marketing and Logistics)

  • Jaroslava Hyrslova

    (University of Pardubice, Faculty of Transport Engineering, Department of Transport Management, Marketing and Logistics)

  • Petr Mrazek

    (University of Pardubice, Faculty of Transport Engineering, Department of Transport Management, Marketing and Logistics)

Abstract

Fleet is an essential element of the business model of airlines. The amount of aircraft operated, the way they are purchased and their use in service has a significant impact on the economy of the airline. This article focuses on the way of aircraft acquisition – operating lease. During the lease term or after termination, the aircraft is not owned by the airline, but the aircraft is rented. It is a specific form of outsourcing and the routine practice of airlines around the world. The article describes all the reasons, procedures and requirements of operating leases. It analyses the integration and reporting of operating lease costs in the carrier's cost structure. The main benefit of this research is the analysis of the development of the fleet ownership structure of the four largest low-cost airlines in Europe. The study focuses on leased fleet trends with respect to the total number of aircraft in the fleet age context. Each of the controlled airlines has its own specifics. In general, the total number of aircraft in the fleet is still increasing. However, the number of leased aircraft does not have this trend, and during the development we have seen the phases when the number of leased aircraft declined. The average age of aircraft in these companies was 5.4 years at the end of fiscal year 2017.

Suggested Citation

  • Eva Endrizalova & Martin Novak & Vladimir Nemec & Jaroslava Hyrslova & Petr Mrazek, 2018. "Operating Lease As A Specific Form Of Airlines Outsourcing," Business Logistics in Modern Management, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 18, pages 641-655.
    • Handle: RePEc:osi:bulimm:v:18:y:2018:p:641-655
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    References listed on IDEAS

    as
    1. Bourjade, Sylvain & Huc, Regis & Muller-Vibes, Catherine, 2017. "Leasing and profitability: Empirical evidence from the airline industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 30-46.
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