Slowing traffic, declining geopolitical stability and rising concerns over defaults and bankruptcies are three contributors to the increased need for monitoring services. Early warning of airlines facing challenges can be the difference between removing aircraft quickly and efficiently, or facing a default or repossession.
With a formidable network, a team of expert researchers and an independent view, IBA is uniquely positioned to gather, analyse and report on events and triggers. We combine the technical and regulatory aspects of lease management with the commercial and externally-focused analysis to provide a comprehensive overview of how the aircraft is being utilised and if the risk of grounding or default is increasing or decreasing.
Such research will alert you to activity that you might decide is an indicator of a struggling lessee.
Examples might include:
- Key staff changes.
- Route changes and cancellations.
- Records & maintenance systems issues.
- Economic & regulatory changes.
- Order deferrals.
- Rumours of payment difficulties.
Example Case Study
A lessor was concerned around the liquidity of an Asia Pacific operator and its ability to cover both rental and maintenance payments as utilisation dropped
IBA conducted a thorough review of desktop sources, analysed utilisation data and made discreet enquiries with local MRO facilities in respect of the operation’s current performance. While media searches only indirectly alluded to a problem, utilisation analysis and conversations with local stakeholders revealed cashflow concerns. The lessor insisted on IBA being permitted to conduct an audit which confirmed that the operator was in difficulty.
The lessor was the first to remove its assets and was able to re-lease them before the airline filed for bankruptcy. Competitors with aircraft in situ faced a supply glut for airworthy aircraft and large bill for aircraft in need of maintenance.