Ownership
Leaseback
An arrangement where an aircraft owner leases their airplane to a school or club, which rents it out and pays the owner per hour flown.
In practice
Leasebacks promise owners revenue against fixed costs and give operators fleet capacity without capital. The economics live or die on utilization and honest accounting: the owner needs enough rental hours to cover their costs, and both sides need clean records of hours, fuel, and maintenance responsibility. Ambiguity about who pays for what - especially surprise maintenance - is the classic leaseback dispute.
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