Successfully reported this slideshow.
Your SlideShare is downloading. ×

Engine Leasing - Aeolus Guide to Maintenance Cost Savings

Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Loading in …3
×

Check these out next

1 of 12 Ad

More Related Content

Recently uploaded (20)

Advertisement

Engine Leasing - Aeolus Guide to Maintenance Cost Savings

  1. 1. Airline Maintenance Obligations for Engine Leases – Lessor Guide to Good Practice and Cost Savings. Fergal Whelan-Porter / CEO, Aeolus Engine Services. 4th Annual Aviation MRO Summit 25 November 2022 / Berlin, Germany
  2. 2. Company History  Established July, 2000 in Dublin, Ireland.  Privately owned with over 50 years experience in aircraft engine leasing, maintenance and trading.  Founded on a deep passion for excellence in service & innovation for aircraft engine solutions. NB Aircraft Engine Leasing: Focus on CFM56/LEAP family NB Aircraft Engine Trading: SLB; Exchanges; Used Serviceable NB Aircraft Engine Technical Services: ESV Mgmt; ECM; Field Inspections/Repairs; Evaluations.
  3. 3. Platforms Supported / Sample Client Base Aeolus Engine Services prides itself on being experts in the CFM family of engines CFM56- 3 CFM56- 7B LEAP 1A & 1B Global client base
  4. 4. Air Transport Industry emerging from most turbulent period in memory New Macro Economy 2022+ presents more challenges for Aviation than assurances. Airlines need to improve cost control structures
  5. 5. Engine Leasing: Growing • ENGINE LEASING MARKET CONTINUES TO GROW Y-O-Y • LEASING IS IMPORTANT TO AVIATION RECOVERY • LEASING IS CASHFLOW FRIENDLY FOR FLEET EXPANSION
  6. 6. Engine Leasing: MX Obligations; A Key Cost Consideration Types of Engine Leases: Understand your maintenance obligations  Long Term (5 yr +)  Standard Lease: Basic Rent + MR  Power-By-The-Hour  Sale and Lease Back (SLB)  Short Term:  Standard Lease (3mths – 3yrs)  Green Time / Run-out (No MX requirements)  Fixed Rent (inclusive of FC limit)  Lease to Purchase (Fixed Rent;All FC incl)  Spare lease (Fixed Rent + FC/FH Use extra
  7. 7. Negotiating Contracts: Maintenance clauses • Nota Bene: Obligations for MX costs defined by Lease Agreement. • Key objectives: • Clarity of language • Mutual understanding • Equitable terms • Important clauses: • Maintenance Reserve Rates ($/EFH; $/EFC) • Escalation Rates & Dates • Delivery condition and inspection • Maintenance obligations & influence • Engine build standards • Return Conditions • Open/Closed Program (PBTH)
  8. 8. Engine Maintenance: Planning • Align with Lease obligations – N.B.: Return conditions! • Align with operational requirements • Understand MX Phase & MTBO • Budget for escalation rates (MR; OEM; MRO) MRO) • Calculate MR Drawdowns: No surprises! Don’t forget built-up MR access. • Factor in EFH adjustments for thrust variation • AD / SB compliance: Pay attention! Prepare! • Unscheduled MX: Risk Analysis; Budget. • On-wing MX: Lessor blessing; MR Access.
  9. 9. Engine Maintenance: Good Practice • Workscope focus: Lease obligations + Operational needs (within Lease Term). • Workscope optimisation: Performance work with LLP Replmts = Less cost exposure. • Workscope decisions: Ensure Lessor acceptance. • Part Replacements/Repairs: Careful! Consult Lease Agreement / Lessor. • Part Replacements (incl. LLP): Buy parts in advance of scheduled SV. Savings! • Component changes: Paperwork; Paperwork; Paperwork! • Off-coming material = Assets. Monetise! Operator responsible for maintaining engines on par with industry standards while keeping proper records.
  10. 10. Maintenance Reserves • Understand $/EFH rates & distribution per module. • Understand $/EFC rates & OEM CLP escalations. • Adjust MX budgets for operating thrust variations. • MR account ledgers: Lessee-Lessor reviews • Ensure access to built up MX Reserves. • Submit MX bills on-time. • Understand SV Cost Split: Understand MR
  11. 11. Lease Return: A Smooth Handover  Read your contract!  Delays = Unnecessary Costs!  Review QEC changes prior to lease return.  Return Checks / Inspections / Test – Prepare!  Engine Certification: Know your obligations!  Records: Paperwork! Paperwork! Paperwork!  Transport Stand: Is it the same one?  Transportation: Follow OEM guide - No short-cuts!  Redelivery: Not just physical return – Comply with all Return Conditions. Both the parties must work hand-in-hand to expedite the lease return process.
  12. 12. Unit 2, 2050 Orchard Avenue, Citywest Business Campus, Dublin, D24 ER27, Ireland +353 1 8219095 engines@aeolus-engineservices.com

×