To close out a number of recent posts on the topic of “where to start” the review, we thought it was best illustrated in our diagram below.
Last week we talked about the Certified STATUS lists and with your help we collaborated on a comprehensive list.

Another step that is early on in the process is extracting the Technical Return Conditions from the Lease Agreement, we have listed some typical examples below but remember these vary from lease to lease so please put time in to extracting them accurately;
* Clear from a maintenance check (MPD,AMP) 24 months/ 7500 Flight Hours (FH)/5000 Flight Cycles (FC).
* Airworthiness Directives(AD) and Service Bulletins(SB) cleared for 1000FH/1000FC/6months
* HT components clearance 6 months/1000FH/1000FC.
* Looking back 3 years for OCCM components replaced and have certificates for all of these.
* Engines and APU no less than 3500FC to next Shop Visit(SV).
* LDG with no less than 3500FC to next SV.
* All Life Limit Parts (LLPs) with no less than 3500FC to next SV.
* All Structure Repairs to be Permanent and recorded on the Dent and Buckle (D&B).

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During an aircraft transition to a new lessee from a lessor an aircraft will be accompanied by a lot of existing records and technical documents.

In many cases such documents will be “historical” maintenance or records and not performed by or on behalf of the new lessee.

There is of course multiple considerations during an aircraft lease being signed and the aircraft put into operation – an airline typically will want to operate the aircraft for revenue and as such has a main focus on airworthiness, safety and regulation compliance.

The lease will ensure as best as possible at the time it was written that the aircraft has been returned in an airworthy condition and will often have requirements that exceed that of regulation compliance – remember that the lease is about protecting asset value and has a slightly different focus that an airline which is focussed on airworthiness / safety / compliance.

Of course, the lease, by design will want to ensure airworthiness / safety and compliance as this essentially means that the aircraft will be prepared for a new lessee after the existing lease ends.

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The APU or Auxiliary Power Unit will have its own history and it is commonly not shared with the aircraft as they are not always the original upon installation.

The APU can be completely removed from an aircraft and another one installed in its place at any stage.
The APU will have its own status reports including AD’s and SB’s along with its own history.

This ease of removal and installation for the APU is important to understand as if the APU installed does not meet return conditions it can simply be replaced.

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Aircraft leasing when considered from a high level can help to put understanding around the different requirements and conditions that any lease agreement will put in place.

The lease agreement is there to protect the asset value and also the lessor exposure should the unexpected happen to the lessee such as financial difficulties.

Initially the lease will progress from interest from a potential lessee and this interest is then formalised by a LOI (letter of Intent) before moving on to execute the lease itself.

The discussions during this initial stage will look to address many different topics and areas, but some of the key conditions include:

–         Length of the lease
–         Rent payments for the lease
–         Maintenance Reserve Funds MRF (these are supplemental payments to the rent which essentially mean that as the aircraft is utilised an according percentage of the estimated maintenance cost for that utilisation is also paid)
–         Deposit structure for the lease
–         Return conditions for the end of the lease
–         Insurance
–         Termination Clause(s)

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With a large number of aircraft due to be reactivated from storage programs in 2022 it will be important for the technical teams to evaluate the work performed during the storage, review the Airworthiness Directives (AD’s) for compliance, the Hard Time (HT) component lists and the Last-Done-Next-Due (LDND).

On a typical review of a LDND report the technical personnel will perform a line-by-line review of each task to see when they were last done and when they are next due.
The report will contain the following;
*Operator Specific Maintenance Tasks
*System Maintenance Tasks
*Zonal Maintenance Tasks
*Structure Maintenance Tasks
*Certification Maintenance Requirements
*Soft Life Items Listing
*Optionally – Structural repairs requiring repeat inspections

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