I'm in a financial pickle

I leased too many aircrafts and now I will be unable to pay the week end closing plus the leasing costs which are coming up on 17 November.

What will be the consequences if I am unable to pay the lease? Will they be immediate?

What if I cancel the lease contract? Will I get back the security deposit and will there be a penalty?

You don't get money back if you cancel the lease, but you won't need to pay any money as far as I know.

I think you get a grant to survive from week to week if you are in trouble

Don’t cancel any leases! You will only get the money back at the end of the lease term (next lease payment), so it will not help you.

If you can’t pay the weekend salaries you will receive an emergency loan (at horrendous interestb rates). Be aware, you will only get two consecutive such loans, the third one will liquidate your company.

After the weekend closing your bank balance will be zero. Any following lease payment that you can’t make will breach the contract and your aircraft gets returned. The positive thing is, you’ll get the deposit back (less the lease rate payment), but any cabin configuration is obviously lost.

Don't cancel any leases! You will only get the money back at the end of the lease term (next lease payment), so it will not help you.

But my lease payment is due today (end of lease term). If I cancel the lease, won't I get the security deposit back today?

But my lease payment is due today (end of lease term). If I cancel the lease, won't I get the security deposit back today?

Yes, you'll get the money back when the contract is due (use the cash flow list too look for the most convenient contracts you could cancel). And you don't need to cancel any flights on the affected plane (you won't have to pay any compensation for remaining flights), so better save that money..

Yes, you'll get the money back when the contract is due (use the cash flow list too look for the most convenient contracts you could cancel). And you don't need to cancel any flights on the affected plane (you won't have to pay any compensation for remaining flights), so better save that money..

This is quite helpful. Thank you! :D

The first time you can't pay a lease, the plane will be automatically returned to the owner. You get back the deposit minus the weekly fee (so essentially, you get back 90% of your deposit). That money should be good enough to cover the other payments so you won't lose more planes. If it's not, you might lose a second plane.