There's more to the Lease Rate Factor than meets the eye
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DVB's Kieran O'Keefe breaks down the lease rate factor (LRF), the short hand indicator of value for an aircraft lease. He looks at how low LRFs can go and explains how the indicator can be used to show different lessor strategies. O'Keefe says current lease rentals are at an all-time low with returns marginally above the return earned by the debt providers as some lessors ignore transaction risk in their lease agreements with airlines and/or take an increasingly optimistic view of future aircraft values to meet their internal rate of return targets.

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Vol. 8 Issue 14 of Aviation Finance