Performing the Lease Returns of 1,381 Aircraft Components from a Big 3 Middle Eastern Carrier
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Overview
Our client, an integrated provider of MRO services and lease finance solutions across the global aerospace industry, had a significant components leasing agreement with one of the three large Middle Eastern airlines.
The lease agreement was ending, so our client had to initiate the lease return and remarketing process of 1,381 components.
Challenge
ACC Aviation was engaged to perform the lease return process on our client’s behalf, performing the physical and technical inspection of the components, ensuring the components met lease return conditions, preparing and managing an open items list, and preparing the technical data room files in support of the remarketing process.
Given the storage cost and loss of value on calendar time parts, the client required ACC to work under tight time constraints and tight deadlines.
Our solution
To complete this assignment, ACC deployed two onsite inspectors for 15 days, inspecting an average of 90 components per day, in addition to the administration work performed after the physical inspection. The team reviewed the documentation and the contract obligations, raising an Open Items List (OIL) for a reliable track of the components that were found in non-compliance.
As part of this assignment, we were responsible for:
- Tracking, reporting, and resolving all issues relating to the collection of the components.
- Developing an OIL, hosting and moderating open-issue meetings, resolving project-related issues with the lessee, and collecting information from outside parties such as repair vendors and OEMs.
- Identifying areas of non-compliance with the redelivery conditions or regulatory criteria, such as PMA components or alternative part numbers, and identifying any unscheduled maintenance, repair, or overhaul that the lessee needed to perform before returning each part.
- Where components did not comply with the return conditions, we advised our client on appropriate remedial measures to address such non-compliance to maximise the residual value of their assets.
The project was highly challenging, with a large percentage of the components unready for inspection, an above-average level of findings (including 489 OIL items), and numerous negotiations around the buyout of non-compliant components.
Client outcomes
ACC Aviation completed this assignment promptly and with a focus on generating the best financial outcome for the client. Based on our inspection work, our technical division completed the lease return of 1,381 parts and supported the lessee’s buyout of 218 non-compliant components.
With its inventory of components organised and stored in a central warehouse, supported by a complete, indexed, and robust records data room, in addition to follow-up meetings, our client can now remarket its inventory efficiently.
Key achievements
Experience counts.
Our achievements prove it.
- Successfully returned 1,381 parts, and supported the lessee’s buyout of 218 non-compliant components
- Organised the inventory of components for a client, enabling the client to remarket its inventory efficiently
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