Aircraft Engine Lease Return – Conditions associated with engine lease hand back

Aircraft Engine Lease Return – Conditions associated with engine lease hand back

The engine is a high-cost asset and the value of the asset is directly related to the condition of the engine both regards to the component’s remaining life, but also to the condition and implications of the condition – for example, a compressor blade damaged by an impact might require action within a certain time frame and this, in turn, could require a visit to an overhaul shop.

If on the wing then after satisfactory completion of the demonstration flight the full video borescope inspection of all accessible gas path sections of each Engine (accessible whether by borescope port or other means), including the low-pressure compressor, high-pressure compressor, combustion chamber, high-pressure turbine, and the low-pressure turbine area would be carried out.

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Mid-Lease Inspection – Technical Records Audit 

The mid lease inspection is a topic that we have considered in a couple of posts prior to this and we continue to look at how we break down the requirements and what we might look at.

A large part of the aircraft lease agreement will, of course, be focussed on aircraft maintenance; it is important to know that during operation the aircraft will operate with a maintenance plan based on the current environment, utilisation and include influences such as the airline reliability programme.

This means that the maintenance plan currently being used might have adjusted intervals for some tasks or additional tasks for example – during operation, this is normal and not a concern. Additionally, there may be some repetitive tasks and items with limited life being carried too heavy maintenance inputs also – again these are not an issue as long as they are controlled during operation.

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Mid-Lease Inspection – Technical Records Audit – Documents

Mid-Lease Inspection – Technical Records Audit – Documents


In the “Mid-Lease” or “Mid-Term” Inspections as we looked at in a prior post we have to consider certain areas of the aircraft for the lessor.

This information and data is used to market the aircraft as it is part way into the lease and can be used to get new customers lined up for the aircraft when it will be available at the end of the lease period.

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Mid-Lease Inspection – Technical Records Audit

During the asset Life-Cycle the lessor has a duty to carry out aircraft due diligence on a periodic basis at a frequency agreed in the Aircraft Lease Agreement, this due diligence is commonly referred to as the “Mid-Lease” or “Mid-Term” Inspections.

In advance of the mid-lease inspection if representing a lessor or owner then it is important to define the required scope of what data needs to be collected.

The requirements have changed significantly over the years and in particular the volume of Technical Records required has increased.

The checklist is broken down into several areas and we will consider these over a series of posts.

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