IATA Aircraft Lease Guidance

Guidance Material and Best Practices for Aircraft Leases
Details for each step in the delivery process are as follows:
●
Confirmation of end of lease, airline internal process – 24 months prior
o
o
o
This timing can vary from airline to airline but a good practice is to prepare more time then less.
Review of major component returns condition like engines, APU, landing gears etc. And any
upcoming maintenance event on those components should be reviewed as well.
The decision of returning or continuing the lease needs to be discussed as well.
●
Detailed analysis of Return conditions – 12-15 months prior
o
o
Lessee to make an interpretation of each element of the detailed return conditions.
Identify any problem areas, potential compliance issues, and perform technical and commercial
evaluation of options to resolve these issues.
●
MRO selection – 9-12 months prior
o
o
o
This timing is individual for each operator.
Lessee to review MRO options with consideration of MRO qualification (EASA, FAA etc., component
and accessory overhaul capability). Booking of a maintenance slot for the lease return check.
Lessee to consider MRO on dock date for any required parts or equipment changes.
●
Initial meeting with Lessor – 9-12 months prior
o
o
o
o
o
o
o
o
o
o
Set up a face-to-face with the Lessor
Appointment of Project Managers from both Lessee and Lessor
Agree on schedule for both face-to-face meetings and/or teleconferences.
Lessee and Lessor to discuss, clarify and record in detail each element of the return conditions to
ensure the terms are clear and that both parties have a common understanding.
Record any agreed amended return conditions, elaborated items, buy-outs etc. through formal
documentation or at minimum record in the official meeting minutes.
Discuss/agree the baseline costs and interval assumptions for any return compensation payments (if
applicable).
Discuss aircraft configuration requirements (cabin configuration/component age vs airframe age
etc.).
Lessee and Lessor to discuss general issues related to aircraft return process and conditions.
Lessors remarketing inspection protocols in the period leading up to the return (limit to prospective
Lessee’s with signed LOI and agree attendance limit numbers and duration).
All Lessors requests should be discussed, e.g. paint livery of the next operator, modifications etc. Also
discuss Lessor’s approach to application of delay provisions to ensure that these will be carefully
weighed.
Discuss with Lessor the engine return conditions
58 4 th Edition 2017