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You are a senior airline captain finally making good money and decide to buy a new airplane for your personal flying. An FBO that is

You are a senior airline captain finally making good money and decide to buy a new airplane for your personal flying. An FBO that is an aircraft dealer seeking to sell you an airplane offers to lease it back from you for use in their charter, rental, and flight training operations. A different flight school operation that is not in the business of selling aircraft advises you that they'd be interested in leasing the aircraft from you. Having some income from the airplane would be financially helpful, and both companies are financially sound and have good reputations for paying their bills on time and taking good care of aircraft entrusted to them.

You have two options:

  1. Buy the airplane from the dealer and lease it back to them, or
  2. Buy the airplane from the dealer and lease it forward to the flight school.

Carefully analyze which of these options is the most likely to result in the lowest purchase price and the most reliable lease income. Explaining your reasoning clearly.

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