ABSTRACT
Airline capital expenditure can be financed internally from cash or retained earnings or externally from lenders or lessors using a variety of financial instruments. It is difficult to obtain comprehensive data on the sources of finance for aircraft deliveries. The airline sells the equipment trust certificates to investors to pay for aircraft, which is then owned by a trust on behalf of the investors. The London Inter-Bank Offered Rate is the annual rate of interest calculated daily by averaging the responses from the major banks operating in each currency in the London markets. Islamic finance is any form of funding that satisfies Islamic principles, especially on interest payments. Many of the larger international banks have traditionally been involved in aerospace and aircraft financing, and have often had specialist departments dealing with this industry. Operating lessors have their own aircraft out on lease and also act as advisors to other aircraft owners or holding companies to manage their aircraft leases.
