Aircraft and engine recovery or repossession is complex. IBA has extensive, in-depth, practical experience of repossessing aircraft and engines in both work-out and default situations. Aircraft on lease to defaulting airlines can be monitored on site for a period of time so as to provide banks, lessors and investors with real time information, enabling critical decisions to be made.
We approach each situation on a case by case basis and provide recommendations to either repossess aircraft and engines, or allow continued operations by taking full account of the high cost implications of repossession. Even when an airline is not making lease rental or debt payments, it may be preferable for the lessor or lender to have a monitoring team on site, for a fixed period of time, so that aircraft and engine records, manuals and technical logs, can be recovered in an orderly manner.
We are custodians of industry benchmark repossession data, and our consultancy team have supplied numerous financial institutions and other organisations with detailed repossession cost analysis.Read More
Example Case Study
A financier became concerned over late payments of a B737-600. The operator had sub-leased the aircraft to a North African airline. The situation became politically complex and IBA was appointed to ensure asset value was not at any greater risk and any costs would be minimised.
IBA had copied records the previous month as part of risk monitoring escalation. A team was sent to ensure the aircraft was made secure and worked with the legal advisers to ensure an appropriate court order was arranged. A flight crew, maintenance release, insurance and clearance of liens was arranged in under a week in order to gain custody and safe storage of the aircraft and its records
IBA recovered the asset and also managed to sell the aircraft in as-is condition for part-out, creating a sale at above book value for the financier.