Standardizing Lease Contracts?

RSS

Is there a need to create industry standards for lease contracts and agree on guidelines for maintenance reserve calculations? This was the subject of discussion in a session today at MRO Europe.

Yes, says Ran Ackerman, Head of Aircraft Acquisitions & Sales at El Al Israel Airlines, who argues that maintenance reserves are the main concern for an airline when it comes to lease contracts. Ackerman, whose airline leases 16 aircraft, says “there is no leasing company that doesn’t see maintenance as a source of revenue.”

AirCap’s Chief Technical Officer, Joe Venuto, points out that lease contracts (often 200 pages long) need to provide the protection that an owner of a 40 million dollar asset would expect. 

He also says that maintenance reserves are unique to the individual lease contract depending on the aircraft and conditions in which it is being operated and maintained. Lessors and operators have different databases which form the basis for expected maintenance reserve rates, says Venuto. While the airline’s database is unique to its operations, the lessor takes data and makes calculations from it worldwide fleet.

Please or Register to post comments.

A Century of Aviation Week

Aviation Week & Space Technology is celebrating its 100th anniversary this year. In a series of blogs, our editors highlight editorial content from the magazine's long and rich history.

 

Aug 23, 2016
blog

When Aviation Week Was Accused Of Treason 21

Aviation Week editors routinely get blowback when they write about sensitive topics, and the best example of that may be an October 1957 story that revealed the U.S. had been tracking Russian missile launches from advanced long-range radar units in Turkey....More
Aug 5, 2016
blog

Airbus A-300: This Is The Start Of Something Big (1968) 16

The A-300 was touted as quiet, spacious, more efficient and twice as reliable as other airliners of the day....More
Blog Archive
Penton Corporate

Sponsored Introduction Continue on to (or wait seconds) ×