The IFL’s an aircraft is the major financing options for the purchase of an aircraft are, Finance leases, Operating leases are an operating lease for the purpose that allow the lessee an option to further purchase the aircraft and the end of contract the the lease, also some deal during the lease period, at the purchase price determined at the commencement of the lease.
Synthetic leases are also used as a type of finance lease. A synthetic lease is an operating lease for the purpose of accounting, but which is intended as a finance lease. It is structured in a way so that the lessee does not recognise the aircraft as its own asset, and the rent is considered as a lessee’s expense.