Total cost to the air carrier for all property obtained under leases that meet one or more of the following criteria; 1) The lease transfers ownership of the property to the lessee by the end of the lease term; 2) The lease contains a bargain purchase option; 3) The lease term is equal to 75 percent or more of the estimated economic life of the leased property; or 4) The present value at the beginning of the lease term of the minimum lease payments, excluding the portion of the payments representing executory costs such as insurance, maintenance and taxes to be paid by the lessor, including any profit thereon, equals or exceeds 90 percent of the excess of the fair value of the lease property to the lessor at the inception of the lease over any related investment tax credit retained by the lessor and expected to be realized by him.
(BTS4)
Property that is owned by a lessor or landlord and rented to a lessee or tenant who receives rights of use and possession in accordance with the terms of a lease agreement.
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