Our customers may own their aircraft. In some cases, the asset has built up equity. They also may be deferring the tax benefits of ownership. In a sale-leaseback, a business sells its aircraft to GE and then immediately leases the aircraft back, maintaining their right to use the asset. Businesses that use this product typically believe that equity tied up in aircraft can be better utilized elsewhere. The cash proceeds can be used to pay down debt, enhance liquidity, invest in other assets or prepare for potential acquisitions.

Sale-leasebacks can also be used as a tax-planning tool for taxpayers who find that ownership creates an overabundance of tax deductions, such as depreciation from ownership of assets.