Ben Jacques, IBA Group Ltd. Asset Management and Maintenance

Transcription

1 Ben Jacques, IBA Group Ltd Asset Management and Maintenance

2 - What are the biggest threats to aircraft values? - How to monitor and manage assets - Documentation and CAMO - Managing maintenance costs - The life cycle of costs - Maintenance programmes

3 Refurbishment and placement Re-sale or charter Options Identify Opportunity Pre-Contract Assessment Refinance? Contract Negotiation Monitoring during lease / finance term Delivery of Asset

4 Biggest threats to values - The market itself and confidence shown by investors - During showed unprecedented trends in corporate jet values - Never been more corporate jets types to choose from - Never been a bigger used market to choose from

5 Residual Values $35,000, $30,000, G550 $25,000, C300 $20,000, Old B $15,000, New A $10,000,000 $5,000, Days on Mkt Days on Mkt $

6 Per aircraft threats - OEM Programmes - Adherence to OEM guidelines - Damage / Repairs - Modifications - Operating Base/Area - Utilisation - Unique fitments - EASA kit Premium - Actual Sale condition

7 Repossessions Asset Management Expert Witness Feasibility Study Manufacturer Support Engine Tech Support Maintenance Cost Analysis Data Analysis & Modeling Inspections Regulatory Work Technical Records Technical Services Continuing Airworthiness Management Due Diligence Transaction Analysis Conferences Publications Commercial Services Remarketing & Sourcing Ad-hoc Research Asset Valuations Market Opinion

8 Pre Contract Assessment - Regulator / Jurisdiction - Operator - Operating Environment - Current/future market for that aircraft type

9 - Attend the delivery and copy all key documents - Visit the operator at least once a year & perform a robust inspection - Perform annual operator due diligence. - Have a contingency plan in place for next placement. - Be aware of standard fit and changes in buyer expectations. - Perform loan to value assessments - Maintain a relationship with the Operator key personnel. - Obtain monthly utilisation data to ensure continued operation - Keep abreast with regulatory and airworthiness compliance

10 Contigency Planning - Have a plan for common eventualities - Ensure the plan is accurately costed - Consider payment holidays and refinancing - Have contingency relationships

11 Learn about CAMO in this particular jurisdiction and this aircraft Documentation and CAMO: - Mods approved in accordance with national requirements - English language, - Compliance with manufacturer s storage requirements - Hard copies in fire proof container - Records well order and up to date - Records actually meet with aircraft spec and condition - Sign offs and approvals adequately recognised

12 Managing maintenance costs - Most corporate aircraft are maintained on programmes - A fixed hourly rate which should cover the cost of most work - Make sure you know how much it costs to overhaul that engine etc Understand your agreements, what they do/don t cover and how/when to use these plans for your benefit

13 Noteworthy Costs and Considerations - No global tertiary market - Little chance of there becoming one in great numbers - OEM control is unlikely to change - Niche aircraft likely to become more niche

14 Ben Jacques Commercial Manager IBA Group Ltd (0)

15

16

17