Whilst we would always advise that asset repossession should be considered as a last and final resort, our experienced technical service team protect owners’ interest in aircraft by securing and preserving value

Repossessions

We have an extensive, in-depth and practical experience of repossessing aircraft and engines in both work-out and default situations. Each case is approached individually, we can then offer our clients recommendations to either repossess the aircraft and engines or allow the continuation of operations.

Peter Walter
Repossessions

Peter Walter

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Our remarketing team is always on hand to provide a wealth of technical and strategic information and support to help you when it comes to the situation of recovering or repossessing of assets at your request. At IBA, we have significant technical resources available, not only can we respond quickly, we are able to re-register the aircraft as well as further assess the condition of the aircraft once it has been returned. We can also additionally assess the robustness of the local legal systems where the aircraft is currently sited as well as its future destination with minimum delay. This means that the extensive but required processes are finished and completed without our clientele having to wait for long periods of time.

We pride ourselves in approaching each situation on a case by case basis, as we know that no case is the same. By approaching each case individually, we can then offer our clients recommendations to either repossess the aircraft and engines or allow the continuation of operations. This process is done by fully taking into account the high-cost implications of asset 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 fully recovered.

Due to our status as custodians of industry benchmark repossession data, our team can rapidly provide detailed repossession cost analysis at your request.

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Case studies

Aircraft Repossession

IBA were asset managers for an A320 aircraft on lease to Monarch Airlines, owned by Investec Global Aircraft Fund. We were already aware of the tenuous financial position of the airline for some time, and as a result, had a team on standby, should the worst case scenario of airline collapse actually happen.

We had been tracking the aircraft movements on a 24/7 basis and were fortunate that the aircraft had just returned to Gatwick airport when the airline called in administrators.

Given the locality to IBA HQ, the repossession was relatively calm and easy compared to other scenarios we had previously experienced. However, Eurocontrol and two other suppliers of services were keen to withhold clearance to fly for our ferry crew until outstanding debts had been paid. This is a typical situation which most lessors have to agree or negotiate to arrange hassle-free access to aircraft, and to transfer them from expensive airport parking, into less costly storage facilities.

Meanwhile, the remarketing team were already talking to potential new lessees of the aircraft and quickly placed the aircraft.  That part of the transaction went relatively smoothly despite several interior changes being demanded and a fresh C check being required before delivery was finally made.

The planning required is intense and requires significant resources to arrange maintenance release for the aircraft – In this case, it was to fly from Gatwick to the storage facility in Kemble, along with bringing a flight crew and arranging fuel uplift.

Meanwhile, another team were accessing the technical records that were being held at Luton Airport by the airline’s MRO facility, Monarch Aircraft Engineering Limited, which was not in administration at the time. Various work was required on the aircraft to achieve a delivery condition to the new lessee, Iberia, which involved further ferry flights to Birmingham and also FL Technics for C check, reconfiguration and painting. Fortunately, the engines were in fine order.

IBA handled all of the tasks, from initial security at Gatwick, ferry flights, fuel and subsequent spares acquisition for the C check and reconfiguration work.