Navigating the Turbulence of Aircraft Lease Returns: Common Pitfalls and Best Practices

Aircraft lease returns are a critical juncture in the lifecycle of an aircraft, demanding meticulous attention to detail and a thorough understanding of lease agreements. While the goal is a seamless transition, several recurring issues can disrupt this process, leading to disputes, delays, and unforeseen costs. By understanding these common pitfalls and implementing proactive strategies, both lessors and lessees can ensure smoother transitions and protect their interests.

For operation  maintaining airworthiness is paramount, but this does not mean lease compliance and any discrepancies in this area can be a major source of contention. Key challenges include:

  • Record-Keeping Deficiencies: Incomplete or inaccurate maintenance records are a frequent issue. Missing logbook entries, undocumented repairs, or discrepancies between physical condition and recorded data can raise concerns about airworthiness and compliance with the lease agreement. Remember that compliance with airworthiness is not the same as the lease conditions, compliant records for airworthiness does not mean compliant records for lease return!
  • LLP and HT Item Management: Life Limited Parts (LLPs) and Hard Time (HT) items require strict adherence to maintenance schedules, but often have an underlaying more restrictive condition relating to the lease conditions. Failure to track and manage these components can lead to components remaining airworthy, but not being accepted at lease return.
  1. Beyond Airworthiness: Physical Condition and Configuration:

While airworthiness is fundamental, lease returns also involve scrutiny of the aircraft’s physical condition and configuration. Common issues include:

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Aircraft Structural Repairs & Airworthiness Considerations

Enormous whire airplane is flying high in the clear sky, bottom view. Time saving. The fastest way to travel

Structural Repairs on aircraft are a complex topic with a large amount of variations regarding the types of repair (permanent or temporary), materials such as composite or metallic, classifications major or minor, repair categories, inspection impacts, instructions for continued airworthiness (ICA) and the list goes on.

When an aircraft is damaged then it will be “repaired” even if the repair is an assessment of the damage, and it is concluded to leave “as is” – this is still classed as a repair.

Often, we focus on the repair itself, especially in a live environment when you have an aircraft grounded, compensation claims, lease costs etc. All this aside, the repair itself is of paramount importance and depending on the damage the repair might be issued by an approved document such as a structural repair manual (SRM), it might be from the OEM such as Airbus or Boeing, or it can also come from a Part 21 approved company.

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Aircraft Hard Time Items: Unveiling the Hidden Complexities

Building a little from the prior post where we touched on the fact that the LDND (Last Done, Next Due) expands the specifics from the AMP regarding maintenance another consideration can be the HT or Hard Time components.

While Life Limited Parts (LLPs) have a definitive lifespan, Hard Time (HT) items are less straightforward. These components don’t have a predetermined lifespan; instead, they require specific maintenance actions at defined intervals. This could be an overhaul, inspection, or even replacement, depending on the component and the OEM’s instructions.

The task list of maintenance provides an instruction such as “off wing cleaning each 10000FH” for an air conditioning pack heat exchanger” – but we need to track the part number and serial number installed on the aircraft.

This is where the maintenance task translates into the part number and serial number for tracking on the LDND and why the HT listing is so important.

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Aircraft Configuration vs Records: AMP and LDND Explained

In aircraft maintenance, the Aircraft Maintenance Program (AMP) and Last Done/Next Due (LDND) records are critical tools for ensuring compliance, airworthiness, and operational efficiency. While the AMP defines maintenance tasks, thresholds, and intervals, the LDND is the actionable record that tracks these tasks against the actual status of the aircraft and its components.

AMP and LDND: Breaking Down the Roles
AMP (Aircraft Maintenance Program) is a structured guideline that specifies:
Tasks: What needs to be inspected, repaired, or replaced (e.g., “Overhaul fuel pumps every 5 years”).

Thresholds: The initial limits for completing tasks (e.g., 5,000 flight hours, 3,000 cycles, or 5 calendar years).

Intervals: The repetition frequency after the initial task (e.g., every 500 cycles).

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Hidden Discrepancies: OCCM, LDND, and the Role of Audits in Aircraft Leasing & CAMO

In leasing and CAMO alike the real place an aircraft shines is the records – the gleaming exterior and pristine interior promise operational efficiency and passenger comfort; but beneath the surface, is the aircraft’s records.

Details such as the parts installed like OCCM which are on condition and condition monitored components. These are the components which remain in service based on their capability and serviceability as part of a system or standalone – they are not governed by a life span or a mandated overhaul based on time such as safe life items and hard time item.

The records should reflect the accurate listing of the parts, but the list is vast and so incomplete historical data can lead to costly surprises and operational disruptions down the line – when a component is replaced it might well be recorded and certified with the correct paperwork, but crucially if the component list does not reflect or capture the change, we can have discrepancies.

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