Lease Example

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Airline X determines a need for 500 PMC pallets,

plus a 10 % repair allowance.

Conventional purchase process (assumed $800.00 per PMC)

	An order for 550 PMCs is placed with a pallet manufacturer
	50% down-payment ($220,000) is due on order confirmation
	Manufacturing takes 2-3 weeks in the best case.
	Shipping will take another 2-3 weeks
	Pallets arrive at a US hub and need to be distributed
	The balance of $220,000 is due by now
	Pallets go into Airlines X’s system

It is now 6-8 weeks and $440,000 after the initial order.

ACL lease program with maintenance

	An order for 500 PMCs is placed with Airline Container Leasing
	A lease down-payment is agreed upon and paid
	Pallets are delivered to Airline X’s stations – anywhere in the US, in any quantity

It is now 1 week after the initial order.

Damages happen. BUT, with ACL, when the first units are reported damaged, they are exchanged by ACL with repaired pallets.

Airline X is making comparatively low monthly lease payments on 500 PMCs, without worrying about repair cost.

From a tax perspective:

Airline X can write off the lease cost 100 % immediately, while the purchase price would have to be written off over a number of years.

And, as an added incentive:

Assuming a long term lease (min. 3 years), ACL will completely exchange the 500 leased PMCs for new ones every three years.

Airline X’s leased equipment will never be older than 3 years………

Visitors since May 2006