Most Operators Receive Penalties During a Lease Return and for some it is “Major League”

Does this issue concern you as an Operator?

Take this opportunity to engage with the challenge of Lease Management by your CAMO – see the forthcoming training for details:

Managing Aircraft Lease Agreements and Maintenance Reserves – 3 Days – Bangkok, Thailand November 25th to November 27th 2019

Sofema Aviation Services looks at the potential exposure when Lessees failed to plan effectively.

The majority of issues encountered during the redelivery process can be traced to poor planning on behalf of the lessee – the costs can be dire. However, the reality is that it is well within the remit of all lessee’s to manage astutely the entire lease return process and to protect what would otherwise be a significant and unnecessary expenditure!

How confident are you in your overall lease management awareness?

Sofema Aviation Services is presenting a 3-Day training at our partner training facility in Don Muang Bangkok – Placing your core team on this training could be the best decision you make.
Delegates to the forthcoming training will gain an insight into all the areas where the operator faces challenges and often leads to un-budgeted financial loss.

See Examples Below

a) Not carrying out Borescopes on the Engines and APU, in general, creates an additional exposure which could again bring significant unbudgeted costs to the project.
b) Documentation Issues sit very much at the top of the list of end of lease anomalies. Often related to repair documentation in particular connected with the repair certification, material certification and full traceability.
c) Back to birth traceability of components fitted (not available outside of Life Limited Parts (LLP) within the EASA jurisdiction.
d) Parts Manufacturer Approved (PMA) parts are usually precluded within the terms of the lease so that can create multiple issues if they have been installed on the aircraft.
e) Within the FAA jurisdiction, Designated Engineering Representative (DER) repairs can be an issue, pay particular attention to the certification and acceptance into EASA as well as the terms of the Lease Contract.
f) The process of gathering together and accepting the aircraft technical records can take from a few weeks to several months. If there are gaps or disconnects then the costs can grow quite rapidly.

Final Note

Not appreciating the volume of work and time required to comply with the end of lease conditions is a common error which is made by the lessee.

Sofema Aviation Services and SofemaOnline offer regulatory and vocational training both online and within the classroom environment. For details or enquiries please email or