IATA Aircraft Lease Guidance

Redelivery
A specific example of one of these smaller items is the redelivery location. Lease agreements typically provide
for a redelivery location either as designated by the Lessor, or by mutual agreement of both parties. It is
advisable to the Lessee never to accept wording to the effect that the redelivery location shall be determined
by the Lessor. At the very least, the redelivery location should be designated by the mutual agreement of both
parties. Ideally, a firm redelivery location will be agreed in the lease, however, sometimes practicalities do not
allow for a specific location to be designated (i.e. where there is uncertainty with a long lease term). By
leaving the seemingly unimportant choice of redelivery location to the Lessor, the Lessee may be exposed to
substantial, and otherwise avoidable, ferry flight costs.
5.2 Redelivery Process
The amount of effort and time required to properly plan and execute the redelivery of an aircraft depends
largely on how well the individual requirements from the lease have been implemented by the Lessee at the
start of the lease. The redelivery process can be divided into three separate phases; the initial phase, the
operating (pre-redelivery) phase and the redelivery phase. An overview of the different phases and their
timing can be found in Figure 7 which provides a detailed breakdown of all activities and milestones of a
redelivery.
Activity
Initial Phase
24 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
Initial
Months prior to Aircraft Redelivery
Confirmation of Lease Return
Pre-redelivery phase
Pre-redelivery
Detailed Analysis of return conditions
MRO selection
Initial meeting with Lessor
Project plan issued
Cabin and Cargo Bay inspection
Preperation of aircraft records
Preliminary aircraft check package
Preliminary Engine and APU(if
applicable) boroscope inspection
Final workpackage, Lessor approval
Pre-input meeting with MRO
Redilevery phase
Redelivery
Records presentation
Receipt of maintenance plan from MRO
Completion of records review by Lessor
Engine high power run
Acceptance / Demonstration flight
Engine / APU(if applicable) boroscope
inspection
Final discrepancy list
Commercial and contract
Aircraft Return
Figure 7.
Proposed Redelivery Plan
4 th Edition 2017 57