Delivery of new aircraft, particularly when an operator or lessor is receiving new assets for the first time, is a complex and frequently underestimated project. Redelivery at the end of a lease is even more complex and time consuming. Unfortunately the process is also frequently the catalyst for unscheduled maintenance, unbudgeted costs and legal disagreements. Contrary to the efficiency advancements achieved elsewhere in aviation, very little has changed in the redelivery process over the last two decades, it is still very manpower intensive, requires a broad financial, technical and operational skillset and frequently involves robust negotiations between parties.
IBA has been central to the process of transitioning aircraft for almost 30 years. We have worked across all elements of the process, assisting lessors, advising the airlines and informing financiers.
Ultimately, no party benefits from a late redelivery or a larger, unexpected cost. At IBA, the team typically:
- Manages the process years in advance, allowing the operator to focus on their core business and ensuring a smooth redelivery with no surprises.
- Negotiates on behalf of lessors and lessees in relation to extensions or disputes over return conditions.
- Advises either side on minimising costs, penalties and disruptions on occasions where it is apparent the redelivery will not complete as contracted.
Example Case Study
Having been heavily penalised previously, a lessee retained IBA to redeliver two aircraft – one with four months remaining on the lease, the other with 18 months.
Two distinct strategies were employed by IBA:
1. For the aircraft with 18 months remaining, we were able to liaise with the technical team and manage maintenance in accordance with the redelivery conditions, not the MPD. In particular, we procured engine components with sufficient cycles to avoid further expensive replacement at redelivery. Additionally, several repairs that did not have accurate or sufficient repair data were then scheduled for replacement at the end of lease check. Without this planning, the aircraft redelivery would have been at least two months late as the structural parts were not readily available from the manufacturer.
2. For the aircraft with four months left we first met with the lessor to understand that it was expecting to re-lease the aircraft immediately. We then mapped the areas where the client would likely fall short on redelivery and negotiated with the lessor which of these issues would need addressing, as all parties clearly benefited from a timely return.
IBA’s negotiation and project management skills saved the client over $3m in maintenance costs and penalty payments.