Renting Engines vs Leasing Engines
What is the difference between renting engines vs leasing engines for your aircraft? The main difference is in the length of the term. Renting an engine is usually for the short term. For instance, to support your operation when your engine is out for repair or overhaul. Most engine rentals do not exceed ninety days.
Renting Turboprop Aircraft Engines
When you need an engine to replace your own engine, let’s say for at least 120 days, but up to three or more years, it may be better to lease. Leasing an engine is advantageous when you purchase an aircraft without engine(s), or when you need to preserve cash to run your business and don’t want to use that cash for an engine overhaul.
The average per hour pricing for an engine rental is normally a little higher than an engine lease and it has an hourly component and a per cycle component. Therefore, the per hour price remains the same throughout the rental period.
Leasing Turboprop Aircraft Engines
Leasing an engine has a fixed monthly component as well as a lower hourly component, and a per cycle component. Engine leasing especially becomes attractive as you operate your aircraft more than approximately 50 hours per month. For example, if you have a fixed monthly component of $2,300 with a $55 per hour and $23 per cycle fee, your hourly cost at 10 hours per month (at a 1:1 cycle to flight hour ratio) is $308 per hour. However, if you fly your aircraft 50 hours under this scenario, the hourly cost is $124 per hour and at 100 hours per month, it goes down to $101 per hour. As you can see, utilization greatly affects the hourly cost.
These definitions, of course, cannot be found in the dictionary, but that is how we differentiate between the two at Aircraft Propulsion Leasing. For all your TPE331, PT6A and CT7 engine renting and leasing needs, contact us at email@example.com or via phone at (615) 624-4380.