Aircraft Transition

An aircraft lease gives the airline increased flexibility in fleet expansion. At the same time, it is also the main source of income for any leasing company. Consequently, the lessor will seek to maintain its asset value by specifying the aircraft‘s use in a contract and ensuring that the lease agreement is strictly followed by means of aircraft and records audits. As a result, lease contracts are extremely complex agreements. These contracts span many aviation regulatory regimes and legal jurisdictions, and incorporate many protection mechanisms as pre-mitigation for potential adverse events (e.g. airline bankruptcies). To maintain the asset value a few basic principles are stipulated below.

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- The asset value depreciation must be in line with other similar aircraft under similar conditions.

- The asset must be transferable without any significant burden

- Protection must be in place against events of default.

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Our Services

Blue Horizon promote that a review should be done during the whole leasing life cycle, not only when ―nearing the end‖ as mentioned above

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