How does aircraft engine leasing work?

Aircraft engine leasing involves a leasing company or financial institution providing engines to airlines or operators for a specified period, often through operating or finance leases. The lessee pays regular lease payments and is responsible for maintenance and operational costs, while the lessor retains ownership of the engine. This process allows airlines to access new or additional engines without large upfront capital investments and often requires industry knowledge of aircraft and engine specifications, maintenance standards, and lease agreements.