European Airline - End of Lease Maintenance and Fleet Transition Planning
Nyras worked with the Director of Fleet to carry out a detailed review of the end of lease (EOL) planning. The main areas of focus were as follows:
- Ensuring full alignment of fleet and maintenance plans with lease requirements.
- ‘Flying forward’ each aircraft from current maintenance position to end of lease.
- Identifying areas where maintenance plans and lessor return conditions were not aligned.
- Devising alternative strategies for aircraft and engine maintenance to reduce cost, and ensure compliance with lease return conditions.
Our team of industry experts conducted a detailed analysis, which allowed us to make specific recommendations for each aircraft and engine and to determine the net financial impact of our recommendations.
By ‘flying forward’ each aircraft, we were able to identify the planned future maintenance events, forecast spend, determine the ability to draw down on lessor reserves, and understand the return condition compensation to EOL.
As a result, our client was able to reduce the number of V2500 engine shop visits required before EOL and establish a revised Life Limited Parts (LLP) replacement programme. Together, after consideration of any EOL lessor compensation, these delivered a substantial benefit to our client’s bottom line.
The project was able to identify total savings in excess of $18m across the fleet. Importantly, our work also ensured that our client’s maintenance and fleet plans were brought into full alignment with the financial plan and that clear negotiating strategies were in place for the pending discussions with the aircraft leasing companies and external maintenance providers.