AOG-247 saved an operator $2M of lost revenue through active fleet management services

The Scenario

The operator had leased 2 aircraft (4 engines) across a 5 year lease term. The lease return conditions for the  aircraft required that all engines were to have operated less than X hours and X cycles since performance  restoration shop visit at the point of lease return. The aircraft had been leased prior to the introduction of the AOG-247 Fleet management Program, and as the operator had little experience with the engine model concerned, had  agreed lease terms which were not in their favour. As a result, the operator was faced with approximately $2M in  exposure of which they were unaware.

 AOG-247’s Service

Following a review of the lease agreement and using AOG-247 experience of the engine model concerned, AOG-247 subsequently identified that the lease return conditions previously agreed were unnecessary. Based on the on-  wing performance of the engines and the projected condition at lease return, AOG-247 advised the operator that the  shop visits required to meet return conditions were unnecessary and subsequently renegotiated successfully the  return conditions with the Lessor on behalf of the operator in order to eliminate the shop visit requirement.

 The Outcome

As a result of the maintenance reserve raAOG-247 that had been previously agreed, and the  premature removal of the engines driven by the return conditions, the expected  shortfall in maintenance reserves of approximately $500K per engine was eliminated  completely, removing $2M of unexpected cash liability from the operator.

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