Imagine this: You have an aircraft on lease and operate this successfully, you pay 450,000 USD a month for the aircraft and an airworthiness directive is required in the near future. This was not scheduled when you leased the aircraft and now this is a requirement. You complete the inspection and need to repair post inspection – you loose a week of aircraft availability, the parts must be purchased and all maintenance costs covered.
ADs, issued by aviation authorities, address safety concerns and supersede even the Aircraft Maintenance Program (AMP).
While seemingly disruptive and essential for airworthiness, they hold benefits for lessors and lessees alike, but also have a cost attached for this benefit and it is important to think about these costs.
The Ripple Effect: Costs and Benefits
An AD might require engine removal, inspections, or even costly repairs, impacting lease costs and maintenance reserves. But here’s the twist: these actions enhance the aircraft’s value and safety, benefiting not just the current lessee, but future ones too – the lessor is the real sole beneficiary.
Negotiating the Skies: ADs and Lease Agreements
It is really very important to recognize the importance of addressing ADs in lease negotiations – sharing costs, adjusting lease terms, and ensuring clear communication can mitigate financial burdens and ensure a win-win situation for all parties.
Investing in Airworthiness: A Long-Term Vision
AD compliance, while sometimes costly, is an investment in the aircraft’s long-term value and safety. It demonstrates a commitment to airworthiness, attracting future lessees and minimizing potential liabilities.
Access to maintenance reserve funds, cost sharing, and considerations for long term aircraft non availability are considerations for lease discussion and while they might not seem paramount can act as a protection for lessees and lower risk exposure.
IALTA.AERO: Your Partner in Navigating ADs and Lease Transitions
IALTA.AERO’s expertise extends beyond technical knowledge to the strategic aspects of aircraft leasing. We can help you navigate ADs, negotiate favourable lease terms, and optimize asset value and having partaken in multiple lease negotiations we are familiar with different options and terms from perspectives of lessors and lessees.
Ready to master the art of aircraft leasing? Visit IALTA.AERO or email info@ialta.aero today and discover how we can elevate your aviation career.
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