Lease vs. Buy vs. Repair
The reasons why leasing of a spare engine might be the best solution for your current operation are various:
Traditional Spare Engine Support
Engine Leasing in the past has been a great way to keep your aircraft in the air while your engines were being repaired in a MRO shop. No heavy upfront investment were required, no dealing with residual value risks while still having the security for a continuous aircraft operation.
Saving Repair Cost
Operating an external lease engine instead of your own engines can save you millions in repair cost – depending on your aircraft lease return conditions. Many airlines park their own engines at the end of the lease term to comply with the minimum return conditions and avoid an additional shop visit / LLP change.
Other airlines use spare engines to add some additional life (“Green Time”) into their airframes until they perform the final tear down of the aircraft.
Staggering of shop visits
Engines have become very reliable and predictable over the past decades. However, shop visits due to performance restorations or LLP changes are still required during a typical engine life cycle. Since airlines typically ramp up their fleet very quickly ad over a short period of time many engine shop visits will occur in the same time window. This will lead to major peaks which can be challenging to handle from a operational and financial perspective. Operating a spare engine and parking some of your engines will help to smoothen the scheduling of your shop visits and provides more breathing room for unexpected events.
At BPS we support all types of typical spare engine leases and will be able to assist you in every scenario with:
- Short Term Leases
- Long Term Leases
- Sale and Lease Backs