What is a key characteristic of an operational lease?

A key characteristic of an operational lease is that the aircraft is returned to the lessor at the end of the lease. This type of lease is structured so that the lessor retains ownership of the asset throughout the lease term. The lessee uses the aircraft for a specified period while not having the burdens of ownership, such as maintenance responsibilities or financing the entire purchase price. At the end of the operational lease, the lessor takes back the aircraft, which means the lessee is not concerned with the aircraft's residual value or its marketability after the lease term ends.

This structure allows businesses to maintain flexibility with their fleet. An operational lease is typically utilized for short to medium-term needs, making it an ideal solution for companies that may require access to aircraft without the long-term commitment of ownership. The focus remains on the operational use of the asset rather than the long-term investment.