Lessors at Airline Economics’ Growth Frontiers London 2024 conference said regulators should step up to support lessors in the event of defaulted payments as well as establish rules for operators.
One lessor advised to look out for any “unusual patterns of operations and utilisation”, while one said to ensure maintenance is being carried out properly on the aircraft.
With some jurisdictions potentially being riskier, one lessor said: “If the appetite is there to place an aircraft in that jurisdiction, you just need to make sure you have the instruments in your lease agreement to able to open up those line of communication areas.” He said if troubles are on the horizon, the instruments can be deployed to protect the asset and the airline “is not surprised when you turn up someday asking for the keys.”
Maintaining a strong relationship with the lessee will also prove fruitful for both parties. “The best way to approach anything is to maintain that relationship, understanding not only your obligations, but the wider issue.”
The panel was moderated by Rolls-Royce Partners & Finance chief strategy officer Ben Hughes. It was attended by IBA Group technical and asset management director Peter Walter; Aeroconsultant CEO-CTO and president Neha Mishra; Avolon head of technical and engine OEM Enda Swan; and ACC Aviation director of consulting Rob Watts.