At IBA, our expert analysts have extensive experience and full understanding of trading lease rates, leasing terms, aircraft values and residuals

Fleet Selection

A key component of fleet growth is the careful selection of the assets that are best suited to you and your needs. Decisions around the fleet mix, maintenance options and contracts can all have a significant impact on the operational costs and the exit values of aircraft

Fleet Selection

Dr Stuart Hatcher

Stuart Hatcher

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Here at IBA, as well as our supporting of global leasing companies and investors to further develop as well as successfully manage their portfolios, we also pride ourselves in guiding new entrants to the sector on the best practices. This enables them to be able to confidently establish themselves in the market, competently structure successful portfolios and efficiently deliver profitable new platforms.

The selecting of the correct aircraft for your fleet is a critical and complex task. Financial metrics including price, operating costs and potential revenue and operational attributes such as range, payload, reliability, fuel burn and speed are compared and analysed across our proprietary models and databases.

Alongside mission fit, our considerable knowledge and expertise in the understanding of drivers around financing or leasing, allow us to steer the ideal fleet choice around additional factors such as residual value and the leasing industry’s appetite. Typically the more liquid the aircraft type, the lower the overall finance costs will be, this is due to higher residual/lower depreciation. Finally, our combination of real-world analytics, complex modelling and robust experience often improves negotiating positions for our clients.

With our unique access to data, our models are built to answer specific questions around the fleet selection and costs as well as being largely bespoke given; airlines’ various business models, ability to maintain aircraft in-house and OEM maintenance programs. Based on our noticeable experience in fleet selection, we believe that a successful fleet evaluation needs must include the following:

  • Accurate data and assumptions
  • Expert modelling to capture and adjust the many inputs
  • A deliberate mix of quantitative and qualitative experience to ensure that the modelling results are replicable in real-world operations

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