On December $31,1998,$ American Airlines reported that it leased $42$ percent of its fleet of

aircraft $(273$ planes$)$ for lease periods of $10$ to $25$ years. American Airlines reported that it

had annual obligations under these leases in excess of $$1$ billion for each of the next five

years and $$13\mathrm{.}4$ billion thereafter. In its annual report the company noted that $$aircraft

leases can generally be renewed at rates based on fair market value at the end of the lease

term for one to five years. Most aircraft leases have purchase options at or near the end of

the lease term at fair market value, but generally not to exceed a stated percentage of the

defined lessor$$s cost of the aircraft or at a predetermined fixed amount.$$ In $1998$ American

capitalized leases for $187$ planes and recorded a lease liability for these aircraft for $$1,671$

million. The lessee then reports rental expense throughout the lease term. American

Airlines reported only $86$ lease agreements as operating leases in $1998.$ Who was the

effective owner of these aircraft? Did American Airlines effectively purchase them using

financing provided by the lessor, or were the leases really rental arrangements?