The document outlines airline maintenance obligations related to engine leases, emphasizing the importance of understanding maintenance responsibilities defined by lease agreements. It discusses various types of engine leases, maintenance planning, and best practices to optimize costs and ensure compliance with industry standards. Key focus areas include clear contractual language, budgeting for maintenance reserves, and the smooth return of leased engines to lessors.

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Unit 2, 2050 Orchard Avenue, Citywest Business
Campus, Dublin, D24 ER27, Ireland
+353 1 8219095
engines@aeolus-engineservices.com