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A Simple Way To Make Lease Returns Easier

Here is one way to save money and headaches when returning a leased aircraft.

Lease returns are frequently battles--the "tricky triangle" between leasing companies, airlines and maintenance providers performing the redelivery work. Many of the headaches arise from not understanding the requirements of the lease agreement, which results in ever changing work packages. 

Several industry groups--from IATA to the Aviation Working Group--are trying to standardize the process--but in the meantime, here is a great piece of advice that Gerry Kenneally, BOC Aviation's chief technical officer, told attendees at Aviation Week's MRO Baltics, Eastern Europe and Russia Conference here in Budapest.

1. First of all, airlines need to know the lease conditions. (It's obvious, yes, but this doesn't always happen.) "Understand the obligations," and "if you don't understand something," ask the lessor as questions arise, suggests Kenneally.

2. Consider setting up the lease return conditions like a balance sheet. For each leased aircraft, list the requirements and keep track of the progress in meeting them.

An alternative: "sleep with the lease agreement under your pillow so you memorize it!" jests Peter Buckaert, VP redelivery services for Fokker Services. 

His point is the same: know your lease agreement!

 

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