A key component of growth is the selection of the assets best suited to your needs. Decisions around fleet mix, maintenance options and contracts can all have a significant impact on the operational costs and the exit values of aircraft. As managers of over 100 aircraft, IBA has unequalled understanding of operational leases and maintenance efficiency.
Selection is complex and an independent opinion on real-world performance vs OEM claims can save millions of dollars, both at selection and over the asset’s operational life.
Typically we address key aspects including:
- Market overview.
- Route analysis.
- Operator and facilities suitability.
- Aircraft selection.
- Spares policy – initial provisioning.
- Operation and maintenance planning.
- AOC advice.
Combining data analysis, financial modelling and critically, decades of operational experience, IBA is well placed to drive value and highlight pitfalls. As well as the technical aspects of the aircraft we can review the airline operations and maintenance organisation to assess the ability of the operator to perform according to the lease contract. There is, on occasion, a mismatch between the airline’s airworthiness capability and its experience of managing leased aircraft.Read More
Example Case Study
An African operator was looking to select a new fleet of narrow bodies to service its domestic and international network, and had received conflicting advice on the ideal fleet mix for both type and specification of aircraft.
1. IBA needed to consider all costs of operations, maintenance, tooling and equipment, training and financing
2. IBA gathered intelligence, conducted interviews, provided research and modelled forecasts relating to the aircraft’s capabilities, the market size, threats for replacement, and likely impact of external factors
3. We also benchmarked the MRO costs against our proprietary data to highlight possible areas of improvement
4. The report highlighted various scenarios for the aircraft asset across the medium and long term and provided the Client with a comprehensive range of outcomes and recommendations
5. Sensitivity analysis was performed in relation to external costs such as fuel/navigation and airport costs as well as the airline specific expenditure
Comparing the OEM information to more tailored data, IBA was able to quantify key decisions. For instance, it demonstrated that winglets were superfluous despite being specified originally. Indeed, our data suggested that the additional weight of the winglets would have actually increased fuel burn on the sectors identified as a result of the extra weight. To date we have saved the airline in excess $40m in relation to reduced financing and leasing costs, MRO and redelivery costs and improved forecasting around future maintenance events.