IATA Aircraft Lease Guidance

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Guidance Material and Best Practices for Aircraft LeasesIntroductionSince the 1980s, when aircraft operating leases represented less than 5% of the overall aircraft operatingmarket, the number of aircraft operating leases has grown significantly. Airlines have realized the advantageof aircraft leasing; adding aircraft to the current fleet for a convenient period of time, without the economicrisk of aircraft ownership. Prior to the actual lease, a complicated process is enacted to make sure a leasecontract satisfies both the Lessor and the airline. Over time this process has become more cumbersome andtime-consuming due to the associated delivery and redelivery processes. The complexity and timespan of thisprocess often catches airlines off-guard. It is therefore important for the Lessee to understand whatdifficulties must be dealt with, and how to avoid any time-consuming and costly pitfalls. Since there is nouniform protocol for engaging aircraft leases, the International Air Transport Association (IATA) has taken theinitiative to provide guidelines and best practices for IATA airline members and other interested parties in thisdocument.This document may be used by airlines to effectively manage and optimize the leasing process. Thisdocument is written with an attempt to consider the airline’s perspective, and also the perspective of theLessor and the regulator to provide insight into the different points of view.This document consists of five different sections which cover the entire aircraft leasing process, starting atthe negotiation phase, through to operations and subsequent redelivery. Figure 1 illustrates the structure ofthis document.Section 1Section 2Section 3Section 4Section 5describes the background of this document.provides legalities which should be considered at the pre-delivery phase.describes other legal as well as technical considerations, and formal acceptance of theaircraft in the delivery phase. The challenges of importing the aircraft from one state toanother are also described in this section.advises on best practices for minimizing costs for maintenance events, and offers someconsiderations in case the lease is at risk of early termination.sets out guidelines for the redelivery process. In the final phase of the lease period, theLessee and Lessor have to review the aircraft’s compliance with the redelivery conditions,with regard to both the physical conditions of the aircraft and the technical records anddocumentation status.xvi 4 th Edition 2017
IntroductionIATA recommends a process of continual review to ensure lease compliance throughout the leasing life cycle.1Background2Pre-delivery3Delivery4Operations5RedeliveryFigure 1.Document StructureThe annexes provide detailed insights into the most important procedures outlined in these guidelines.4 th Edition 2017 xvii
Page 1 and 2: Guidance Material and BestPractices
Page 3 and 4: Table of ContentsList of Figures ..
Page 5 and 6: Table of Contents4.4 Engine Power b
Page 7 and 8: Table of ContentsAnnex X: LLP Back-
Page 9 and 10: List of FiguresFigure 1. Document S
Page 11 and 12: List of TablesTable 1. Different Ty
Page 13 and 14: AbbreviationsACACMIADAIRAMCAMMAMOCA
Page 15 and 16: AbbreviationsIPCLDNDLLPLOCLOILOPALR
Page 17: ScopeIATA’s ‘Guidance Material
Page 21 and 22: Section 1—Background1Background2P
Page 23 and 24: Backgrounddetermined period. As a r
Page 25 and 26: Backgroundthe repair is within SRM
Page 27 and 28: Pre-Deliveryin certain circumstance
Page 29 and 30: Pre-Deliverylimit, however it will
Page 31 and 32: Pre-DeliveryThe net lease is often
Page 33 and 34: Pre-Delivery●●Fixed costFlexibl
Page 35 and 36: Pre-Deliveryreserves rates depends
Page 37 and 38: Pre-DeliveryAs of July 2015, sixty-
Page 39 and 40: Deliveryredelivery conditions of th
Page 41 and 42: DeliveryOther items, such as wheels
Page 43 and 44: Deliverymodification and without an
Page 45 and 46: Deliveryand registration process in
Page 47 and 48: Deliveryimportant, as the continuou
Page 49 and 50: Delivery3.2.6 InspectionDuring the
Page 51 and 52: DeliveryooooGear TSN / CSN at Overh
Page 53 and 54: Deliveryminimum standards set by IC
Page 55 and 56: Deliveryimporting states recognize
Page 57 and 58: DeliveryIn Europe, under EASA rules
Page 59 and 60: Deliveryspecial procedures, phraseo
Page 61 and 62: Deliveryprogram, which effectively
Page 63 and 64: Section 4—Operations1Background2P
Page 65 and 66: OperationsFor maintenance reserve c
Page 67 and 68: OperationsIt is advisable to the Le
Page 69 and 70:
Operations4.2.7 Other Important EoD
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Operations●●●Reduced flexibil
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Operationspractices; for example th
Page 75 and 76:
Operations4.5 Engine SubstitutionIf
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RedeliveryA specific example of one
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Redelivery●Project plan issued -
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RedeliveryoLessor or Lessor represe
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Redeliveryincludes a “redelivery
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Redeliverythe redelivery of the Air
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Redeliveryrecovery plan. Lessee Pro
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Redeliveryrepresentatives fails to
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Redelivery4. Remediesa) If Lessee f
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References in AnnexesAnnex V Struct
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Annex I: Example Physical Inspectio
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Annex I: Example Physical Inspectio
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Annex II: Typical Redelivery Record
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Page 103 and 104:
Page 105 and 106:
Annex III: Typical Index of Deliver
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Annex IV: Engine Documentation Chec
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Annex V: Structural Repair File Gui
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Annex VI: Modifications Guidelinesd
Page 119 and 120:
Annex VI: Modifications Guidelineso
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Annex VII: Aircraft Maintenance Pro
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Page 125 and 126:
Page 127 and 128:
Annex VIII: Airworthiness Directive
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Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Annex IX: Components GuidelinesAirc
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Annex IX: Components GuidelinesFAA
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Annex IX: Components GuidelinesOper
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Annex X: LLP Back-to-Birth Guidelin
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AcknowledgementsIATA:Chris MarkouGe
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www.iata.org/publishingcustserv@iat
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IATA Aircraft Lease Guidance

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