Leasing Flight Simulators and Training Devices: What Schools Should Check First
You can lease a flight simulator or training device the same way you lease other equipment, but the lease is only worth signing if the device is FAA qualified or approved for the training you plan to credit. Under 14 CFR 61.4, a simulator or flight training device must be qualified and approved for the specific training, and the credit limits in parts 61 and 141 then decide how many hours it can replace. Confirm the approval first, then negotiate the lease structure, term and end-of-lease options.
Key takeaways
- Approval comes before financing: a device that the FAA has not qualified or approved for your course earns no training credit.
- Basic and advanced aviation training devices are approved through a manufacturer letter of authorization under FAA AC 61-136B, which is valid for a limited period.
- Credit is capped. For example, 14 CFR 61.65(i) allows up to 10 hours in a basic device and 20 hours in an advanced device toward instrument time.
- A simulator lease is an equipment lease, so compare a fair market value lease with a $1 buyout lease the way you would for an aircraft.
- Ask what happens to the lease if the approval lapses, the device is revised or the school stops using it.
Can a flight school lease a flight simulator or training device?
Yes. Simulators and training devices are equipment, and schools acquire them with loans and leases much like aircraft. The difference is that the device is only valuable if the FAA has qualified or approved it for the training you want to credit. A lease on an unapproved device is a payment stream with no training benefit, so approval is the first check, not the last.
This guide covers the device categories, how much credit each can earn, the lease structures to compare and a checklist to run before you sign. For the wider picture of lease structures, start with our aircraft leasing guide.
What types of simulators and training devices does the FAA recognize?
There are two regulatory tracks. Full flight simulators (FFS) and flight training devices (FTD) are qualified under 14 CFR part 60, which governs the initial and continuing qualification and use of flight simulation training devices. Basic and advanced aviation training devices (BATD and AATD) sit outside part 60. The FAA approves them under 14 CFR 61.4(c), which says the Administrator may approve a device other than a simulator or FTD for specific purposes.
| Device | How the FAA recognizes it | Typical user |
|---|---|---|
| Full flight simulator (FFS) | Qualified under 14 CFR part 60 | Airline, charter and training center programs |
| Flight training device (FTD) | Qualified under 14 CFR part 60 | Training centers, type-specific and part 141 programs |
| Advanced aviation training device (AATD) | Approved under 61.4(c), AC 61-136B | Flight schools, instrument and commercial training |
| Basic aviation training device (BATD) | Approved under 61.4(c), AC 61-136B | Flight schools, early instrument training |
Under AC 61-136B, a manufacturer whose device meets the guidance receives a letter of authorization (LOA) from the FAA. Sample LOAs published by manufacturers state a fixed validity period and say that unreviewed modifications can end the approval. That matters to a lessee: the approval attaches to a specific configuration, so ask the lessor how upgrades and software changes are handled.
How many training hours can a simulator or device replace?
Less than most new schools assume. The rules cap credit by rating and by device type. Three examples from the regulations:
- Instrument rating: 14 CFR 61.65(i) allows a maximum of 10 hours of instrument time in a basic aviation training device and up to 20 hours in an advanced one, if the device is FAA approved and an authorized instructor provides the time. Paragraph (j) caps the combined time from simulators, FTDs and aviation training devices at 20 hours, with an exception for paragraph (h)(1).
- Private pilot: 14 CFR 61.109(k) allows up to 2.5 hours in a full flight simulator or flight training device representing the category, class and type of aircraft, and up to 5 hours if the training is in a course at a part 142 training center.
- Part 141 schools: 14 CFR 141.41 requires simulators and flight training devices used for credit to be qualified under part 60 and approved for the tasks they support, and basic and advanced aviation training devices to be evaluated, qualified and approved.
Part 141 course outlines and other ratings carry their own limits. Read the rule and your approved syllabus for each course you plan to run, because the credit you can actually claim sets the value of the device to your school.
Which lease structure suits a simulator?
Most simulator leases fall into the same two families as aircraft leases. A fair market value (FMV) lease keeps payments lower and lets you return, renew or buy the device at the end. A $1 buyout lease behaves more like a loan: payments are higher, and you own the device at the end. Our guide to fair market value vs $1 buyout leases explains the trade-off, and the finance lease page shows how a lease that works like a purchase is built.
Technology risk makes the end-of-lease option more important than usual. Redbird, a training device manufacturer, advertises financing through Lion Technology Finance that includes 100 percent financing covering services and support as well as equipment, application-only programs up to $500,000 and protection against equipment becoming outdated. Those are the manufacturer's own claims on its financing page, and terms vary by applicant, so treat them as a prompt to ask questions, not as an offer. Compare any manufacturer-arranged program with a quote from your own bank.
The payment follows the standard amortization formula, the same one in our aircraft loan calculator. An FMV lease on the same device would carry a lower payment because the lessor assumes a residual value, but you would pay a purchase price or return the device at the end. Run both through the lease vs finance calculator with your own quotes.
What should you check before signing a simulator lease?
- Get the approval documents. For an AATD or BATD, ask for the current FAA letter of authorization and the qualification guide version it covers. For an FFS or FTD, ask for the statement of qualification.
- Match approval to your course. Confirm the device is approved for the tasks in your syllabus, and that your instructors and, for part 141, your training course outline reflect it.
- Check the approval date. If the letter expires during the lease term, find out who is responsible for renewal and what happens to your payments if approval lapses.
- Understand modifications. Ask which upgrades keep the approval intact and who pays for them.
- Clarify the end of the lease. Compare purchase option price, return conditions, renewal terms and any early termination charge. See our guide to early termination options and costs for the questions to ask.
- Check maintenance and support. Software updates, hardware repair and downtime are often outside the lease. Get them in writing.
- Look at the guarantee. Lessors may ask for a personal guarantee, especially from a new school. Our guide to personal guarantees covers how to limit one.
How does a simulator lease fit into a fleet plan?
A device that replaces a limited number of hours does not replace an aircraft. It can lower your cost per hour for those hours, reduce weather cancellations and give students extra practice, and some schools find it helps scheduling. What it cannot do is cover hours that the regulations require in an aircraft. Model it as a complement: include the lease payment, the hours it will realistically absorb and the aircraft hours it frees up. Our flight school fleet planner is a place to test that, and how to finance a flight school fleet covers the aircraft side.
Lenders and lessors will want to see utilization assumptions that hold up, so build them from your enrollment and scheduling data rather than the manufacturer's brochure.
What are the next steps?
Pick the device that matches the credit you need, confirm the approval documents, collect two or three lease or loan quotes and compare total cost, not only the monthly payment. Have your tax advisor review the treatment of the lease and aviation counsel review any approval or regulatory questions. If you are also financing aircraft, you can start a deal file at JetFinex to keep the quotes, approvals and fleet plan in one place.
This article is general information, not tax or legal advice.
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Frequently asked questions
Can a flight school lease a flight simulator?
Yes. Simulators and training devices are commonly acquired through equipment loans and leases. Before signing, confirm the device is FAA qualified or approved for the training your school will credit, because the approval, not the lease, determines its value to your program.
How many training hours can a simulator or training device replace?
It depends on the certificate or rating and the device. For instrument time, 14 CFR 61.65(i) allows up to 10 hours in a basic aviation training device and up to 20 hours in an advanced one, and 61.65(j) caps the combined simulator and device time at 20 hours. Other ratings have their own limits, so read the rule for your course.
What is the difference between a flight training device and an aviation training device?
A full flight simulator and a flight training device are qualified under 14 CFR part 60. Basic and advanced aviation training devices are approved by the FAA under 14 CFR 61.4(c) and AC 61-136B, usually through a manufacturer letter of authorization.
Does a leased simulator count toward a part 141 school's approved course?
It can, if it meets 14 CFR 141.41. Simulators and flight training devices used for credit must be qualified under part 60 and approved by the Administrator for the tasks they support, and basic and advanced aviation training devices must be evaluated, qualified and approved.
Is leasing a simulator better than buying one?
It depends on cash, tax position and how long you expect to use the device. Leasing preserves cash and can include upgrades. Buying or a $1 buyout lease builds ownership. Compare total cost over the term and confirm tax treatment with your advisor.
Sources
- Cornell Law School LII, 14 CFR 61.4 Qualification and approval of flight simulators and flight training devices
- Cornell Law School LII, 14 CFR 61.65 Instrument rating requirements
- Cornell Law School LII, 14 CFR 61.109 Airplane rating: Aeronautical experience
- Cornell Law School LII, 14 CFR 141.41 Flight simulators, flight training devices, and training aids
- Cornell Law School LII, 14 CFR 60.1 Applicability
- FAA, AC 61-136B, FAA Approval of Aviation Training Devices and Their Use for Training and Experience
- Redbird Flight Simulations, Simulator Financing
This guide is educational and is not tax, legal or investment advice. See our editorial standards and disclosures. Spot an error? Tell us.
