IAFC manages maintenance reserves, monitors the technical compliance of the lessee with periodic technical audits of the lessee including regular inspections of the aircraft and aircraft records. A dedicated team is also present at significant maintenance events.
IAFC monitors all operational functions of the special vehicles (“SPV”) owning and leasing the aircraft assets such as invoicing rent payment, maintenance reserve payment, compliance with lease terms and covenants. IAFC also monitors compliance regarding the insurance obligations, ongoing credit risk monitoring and evaluation of the lessee.
IAFC manages all aspects of the transition to a new lessee when a lease comes to its end or following an event of default. IAFCs objective is to reduce the downtime and transition costs to a minimum. As such, remarketing the aircraft starts well before the end of the lease or aircraft repossession following a default.
Our team negotiates with the new lessee or purchaser and manages all of the technical aspects of the transition including compliance with redelivery conditions and the contracting if required with Maintenance and Repair and Overhaul facilities.
IAFC capitalizes on its strong research capabilities and market knowledge to actively and continuously assess divestment options in order to ensure investors take advantage of market opportunities and to ensure they do not stay tied to assets that may become unlikely to meet their performance expectations. Our team has a worldwide network and considerable experience trading and leasing aircraft in the secondary market with or without a lease attached.
Our team is also experienced in phasing-out aircraft at the end of their life including part-out by arranging for the disassembly of used aircraft and engines and then consigning the individual piece parts to any one of several leading distributors of aircraft and engine parts. The sale of surplus after-market aircraft and engine parts, in aggregate, is a multi-billion dollar annual business. Its primary competition is the significantly higher priced new parts market that is tightly controlled by the Original Equipment Manufacturers. More and more airlines are seeking lower cost material, such as the used parts that we supply, to lower their maintenance costs.