In order to protect his work from 2007, Dragonair, needed to replace the spare engine, which has been recognized beyond economic repair in the back end of 2002. Three options are available to meet this need. First, Dragonair is offering direct drive, which would require to place an order with the manufacturer 12 months in advance and pay an upfront deposit. Second, airlines could choose sale and leaseback transaction with a leasing company which he would sell the engine he bought to the leasing company and then lease it back from the leasing company for a specified period. Third, the airlines can lease a new motor directly with the leasing company, in this case, the leasing scheme will be the same as the sale and leaseback transaction. "Hide
Su Han Chan, Ko Wang, Andrew Lee Source: University of Hong Kong, 6 pages. Publication Date: January 15, 2010. Prod. #: HKU882-PDF-ENG
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