Aircraft Leasing and “Quiet Enjoyment” contract conditions.

While the aircraft is leased the lessor wants to maintain the value of the asset and in doing so wants to be updated as much as possible as to the aircraft’s condition and status etc. This is of course important, but there could be a level where this management of the asset could become intrusive and costly for a lessee if there was no guidance or conditions for this process.

There are multiple conditions and updates that must be regularly provided to the lessor at all times throughout the lease and to protect the lessee we often refer to a term called “Quiet Enjoyment”.This is basically the right of a lessee to operate the aircraft without intrusive and costly requirements from the lessor for in-depth records reviews.

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Aircraft Reliability –value of data vs informationand effectiveness of your reliability program

When we mention aircraft reliability, we open up a lot of different topics all at once; ultimately though we get out what we put in as with many systems such as safety management also.

It is important to know the difference between data and information –information can be created from data. Data on its own can be meaningless or hard to interpret, the data is just facts and details for example that we must analyse.

The reliability programme is only going to be as good as you make it by determining the needs and objectives you want to achieve.

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Aircraft Leasing and Installation of Loan or 3rd Party Components. 

If you lease an aircraft, then you are making a legal agreement with the lessor, and they of course will want to maintain their asset and always have financial security of the asset. It means that the aircraft leasing agreement will have conditions for the installation of loan or 3rd Party components. 

This can be a challenge in certain circumstances such as a leased aircraft for example where the title engine needs to be overhauled and the aircraft needs to continue in operation. For this to occur it means the engine must be removed (the title engine that came with the lease) and another engine must be installed. This engine being installed may well be a loan engine or a pool engine for example, meaning it does not belong to the lessee and it might also not be owned by the lessor of the aircraft. 

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Aircraft Leasing and Repossession Clause Awareness

We have seen before how the aircraft lease is a document aimed at maintaining asset value and ensuring lessor has limited financial liability.
A key part of that protection comes from how we deal with an event in which the lessee defaults (does not make a payment based on the agreed payment schedule).
The contract can hold clauses that clarify and state what and how the event might be dealt with in the event of an occurrence. The easiest way to illustrate this is to consider a section of the lease agreement and note that this is a limited and isolated section only, it is not a complete example of protections, but an example to illustrate the point.

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Topics to consider for structural repairs

The leasing of an aircraft is a complex topic and an even more complex and very comprehensive review of the aircraft itself and the associated records.

While all the review is important, some areas have more potential impact than others due to their ability to impact cost or timelines significantly. Consider an out-of-date life vest Vs an engine that has damage revealed on a borescope inspection; of course, it is easy to see how one can be addressed with a small cost and time impact, and the other can have a significant impact on both.

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