Seat Leasing Is Now an Option
With the extended boom in air traffic growth continuing, airlines are eager to keep older aircraft in service but often need to refurbish or upgrade cabins with new seats. Responding to the market, aircraft seat manufacturer Geven and Velantis Seat Financing Solutions plan to offer passenger-seat leasing to airlines, operators and aircraft lessors. Geven will give all its customers, both line-fit and retrofit, the opportunity to lease the seats from Velantis, an Irish financial and leasing specialist.
The idea has been circulating in the cabin interiors industry for several years, but until now there was no system available that offered this option from the seat vendor to the seat end-user. Velantis will be much more familiar with customers, leases and residual values than a typical unaffiliated financial institution and thus should be able to offer more attractive terms.
The program will work much like aircraft or engine leases. Upon agreement, Velantis will pay Geven the purchase price for the seats. Velantis and the customer will arrange mutually agreeable lease terms.
Geven Marketing Manager Rodolpho Baldascino says the leases are likely to last 3-7 years. The customer may pay a flat rate per month or perhaps a charge per flying hour. During the term of the lease, Velantis will own the seats, but Geven will provide technical support as it usually does for its equipment.
S7 Grows MRO Capabilities
S7 Technics completed its first heavy checks on Airbus A320neo aircraft. Conducted at S7’s Domodedovo Moscow Airport hangar, the C check work was timed to include the 7,500-flight-hour, 5,000-flight-cycle and 24-month checks.
The company’s Novosibirsk Tolmachevo Airport facility is set to perform A320neo heavy checks soon.
“We are getting ourselves ready for even heavier checks on this aircraft type that imply maintenance work at six-year intervals. Those mean more thorough checks of the airframe structural elements according to the manufacturer’s recommendations,” said Denis Bogdanov, S7 Technics’ leading engineer for airframes and engines.
S7 Airlines began flying the Pratt & Whitney PW1100G-powered A320neos in 2017. Its maintenance arm performs third-party work for many operators in the region and in March signed a five-year deal to support Kazakh flag carrier Air Astana’s A320s and Boeing 767s.
MRO Growth Rates by Region, 2019-28
Over the next decade, India is expected to be the fastest-growing MRO demand region, with 9.5% compound annual growth rate (CAGR), followed by the Middle East and China, with 7.3% and 6.0% CAGR, respectively.