Major bank leasing company wishes to finance a jumbo commercial jet freighter

SITUATION

A potential lessee requested a sale lease back of a jumbo commercial jet freighter, supposedly, ‘Advanced’ with Civil Reserve Air Fleet (CRAF).

SOLUTION

Alta’s aircraft appraisers determined that the jumbo freighter was not ‘Advanced’, but rather a base model, with a pricing discrepancy of 10+ million dollars. Lessee presented their documentation, which the appraisers found unconvincing. Thus, the bank leasing company did not finance the jet. Meanwhile, potential lessee approached another lessor, who leased the jet as an ‘Advanced’. The lease commenced, unfortunately with a first payment default. Thus, Alta, by not validating the sale lease back, saved the leasing company $10+ million.