For Lessors, the holy grail is undoubtedly to achieve the following objectives:
- Acquire a portfolio of highly sought-after aircraft and/or helicopters in the right configurations;
- Invest in an aircraft/helicopter portfolio with the lowest possible rate of depreciation over the ownership lifecycle;
- Lease all portfolio assets at the highest possible market rates, for the longest possible terms;
- Acquire aircraft/helicopters that can be repurposed or retrofitted at the lowest possible cost, and then leased out in the shortest possible time;
- Enter lease agreements with lessees or operators that maintain extremely strong balance sheets and operate in countries with outstanding credit ratings;
- Have stringent protocols in place to guarantee that all leases are properly served by lessees, i.e. no late payments or unpaid monthly lease commitments;
- Make certain that lease return conditions are fully complied with by lessees;
- Ensure all aircraft are up to date with their maintenance reserve payments, i.e. power-by-the-hour agreements (PBH); and
- Ensure actual maintenance on the aircraft portfolio is not only up to date but also performed by the most reputable maintenance professionals in the industry.
Unfortunately, no Lessor is immune to external shocks that can impact its business, such as the following:
- Major economic downturns;
- Drastic variation in oil prices, up or down;
- Government taxation of commercial flights;
- Grounding of aircraft by aviation authorities or manufacturers (e.g. Boeing 737 Max and Airbus H225);
- Tighter carbon emission targets as a result of global warming; or
- Bankruptcy of commercial operators.
- Major natural emergencies, e.g. flu pandemics, tsunamis, hurricanes, earthquakes, fire, etc.
It is when the going gets tough that Lessors can count on Uplifting Aviation to deliver an optimal solution to manage crises such as those described above.
Uplifting Aviation can design, engineer, implement and execute the following missions, to name a few:
- Sell, (dry or wet) lease or part out your underperforming assets, particularly in the event of your aircraft portfolio being idle, unleased, unsold and giving rise to substantial costs.
- Provide oversight services to preserve the value of each aircraft listed in your portfolio and, to the extent possible, reduce any liabilities impacting the asset values. For more information as to how we can provide a precise valuation for each serial number in the portfolio please visit our Valuations page.
- Develop a unique strategy to transform the underperforming asset into cash or a cash flow-generating vehicle.
- Promote your aircraft leasing business to clients worldwide.
This is no more and no less than a pain and pleasure situation! The greater the extent your portfolio is affected by conditions such as those set out above (e.g. oil price variation), the greater the pain. Uplifting Aviation will turn pain into pleasure and restore your business to profitability. </
Contact us to find out how we can ensure successful outcomes for your business, even in the most challenging circumstances.