Analyzing Transportation Equipment Lessors Aug 97
- ID: 1828375
- August 1997
- Standard & Poors
Leasing is a popular means of financing transportation equipment because of its tax advantages and flexibility. About half of all aircraft operated by U.S. airlines is leased, along with close to half of the world's marine cargo containers. Leasing also finances smaller but significant proportions of the U.S. truck and railcar fleets. Companies typically lease equipment when they cannot use additional depreciation deductions for tax purposes. The alternative minimum tax enacted in 1986 raised the break-even point of profitability at which owning becomes attractive, prompting even companies with healthy book income to lease much of their new equipment. The lessor receives tax benefits of ownership and passes most of them on to the lessee in the form of lower rates....
Companies mentioned in this report are:
- GATX Corp.
- Hertz Corp.
- International Lease Finance Corp.
- Flexi-Van Leasing Inc.
- Sea Containers Ltd.
- Enterprise Holdings Inc.
- Interpool Inc.
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