IATA Aircraft Lease Guidance

Guidance Material and Best Practices for Aircraft Leases
It is also impossible to describe in full detail such a specific process as delivery and redelivery of an aircraft.
Each scenario is never 100% the same and the necessary skills for this topic mainly comes from experience.
Each aircraft has its own identity, history, and problems and every time there will be different people,
mentalities and places.
An important question that often arises at this time is whether the aircraft lease will be extended or not. This
can be a major issue for many airlines if they don’t prepare and analyze what affects each decision will have
financially and operationally. A good practice is to do a thorough analysis of all case scenarios. If the lease is
extended at the last minute what cost will have been spent that otherwise would not have been spent? What
if preparation for extended lease is taken and the aircraft is returned? What potential cost will be incurred?
Late re-delivery penalty due to little preparation, maintenance slot, conditions of major components etc. Each
airline should consider doing this analysis if there is any uncertainty on lease extension or not.
5.2.6 Example “Redelivery Inspection and Acceptance Protocol” 16
1. Objective
a) It is in both the interests of Lessor and Lessee to ensure the redelivery of the Aircraft in compliance
with the Redelivery Conditions on the last day of the lease term (the “Project Objective”).
b) Accordingly:
(i) Lessee and Lessor will cooperate in good faith and in a timely manner to facilitate achieving the
Project Objective and;
(ii) Lessee and Lessor will implement and adhere to its obligations pursuant to the Redelivery
Inspection and Acceptance Protocol.
2. Redelivery Process
2.1 Principles
a) Lessor and Lessee will conduct the redelivery in accordance with the contractual obligations and
acceptance protocol and a project plan to be developed and agreed pursuant to Paragraph 2.4
below (the “Project Plan”) to achieve the Project Objective.
b) Lessor's commitment to perform its required actions pursuant to the Redelivery Inspection and
Acceptance Protocol to facilitate the Project Objective will not lessen Lessee's obligation to
redeliver the Aircraft in the Redelivery Condition, subject to Acceptable Discrepancies.
2.2 Project Managers
No later than (X) 17 months before the end of the lease term, Lessor will appoint a Project Manager
and Lessee will appoint a Project Manager to oversee on behalf of Lessor and Lessee, respectively,
16
This chapter can be inserted into future lease agreements
17
“X” will depend on various factors e.g. Aircraft type, Operator, MRO etc. This applies to all instances in chapter 5.2.6 were “X” is
inserted.
64 4 th Edition 2017