Heard the term “supplemental rent” before and wondered what it means? “Supplemental Rent” is a term often used to describe “Maintenance Reserve Funds” (MRF).
The payments are made along side the lease cost to the lessor and will accumulate over time toward scheduled major maintenance events on the airframe, engines or landing gear for example.
An aircraft transition between lessor and lessee is a complex transaction – one to which there are many different aspects to, across multiple key areas.
Ensuring asset value for lessor with lease conditions and meeting those return or delivery lease conditions for lessees.
One phrase you might have heard a lot more recently regarding lease types is “power by the hour” or PBH.
This kind of lease is a little different in that the lessor provides the asset on a fixed cost base. This fixed cost is typically driven per flight hour, or a calendar period such as monthly.
When considering Life Limited Parts (LLP), which can also be called Safe Life Items (SLI) it is important for any lease review to be especially aware of the different considerations involved.
What to look for with regard to Structure Repairs at Lease Transition, see a typical extract from the technical lease return conditions below.
All repairs to the Aircraft will have been accomplished in accordance with Airframe Manufacturer’s Structural Repair Manual (or EASA-approved data supported by supported by EASA Part 21J design approval or Airframe Manufacturer’s Repair Design Approval Sheets).