End of Lease (EOL) compensations are an important way for lessors and lessees to calculate and compensate utility consumed at the end of a lease.
The definition of the EOL Compensation Rate is equally important since it involves specific costs and operating intervals that ultimately define the compensation rate utilized. The definition of these variables during lease agreement negotiations is critical as they define what will occur at the lease end.
Understanding the mechanics of EOL compensations enables lessees and lessors to effectively plan aircraft returns and corresponding monetary compensations.