Skip to main content

Reducing risk and increasing efficiency with accurate aircraft lease management and forecasting

 

Summary

Maintaining commercial aircraft is a capital-intensive business, so Aircastle needs to manage its lease income carefully to ensure that it always has the resources available at the right time.

Aircastle has built a powerful lease management platform using AMT-SYBEX Leasepoint software, with advanced forecasting capabilities that help the company stay ahead of the competition.

Today, Aircastle has instant insight into critical lease accounting metrics, reducing the risk of human error and saving weeks of manual work.

The Challenge

Planned maintenance on an aircraft and its engines can cost tens of millions of dollars, and when you are dependent on the tight margins of the airline industry, managing cash flows is a significant risk. As a lessor, Aircastle must be able to accurately forecast lease income and maintenance costs.

The Solution

Since the beginning of its business, Aircastle has relied on AMT-SYBEX’s lease management solution. A recent upgrade to the latest version of Leasepoint is helping the company enhance its forecasting capabilities—delivering a depth of insight that is the envy of many other companies in the industry.

The Benefits

  • Aircastle can now set up a new aircraft in the system within minutes and gain a full view of maintenance requirements throughout its lifecycle
  • High-quality, detailed data on every aircraft helps to ensure that forecasts accurately anticipate maintenance events and costs
  • Monthly cashflow forecasts for the entire fleet can now be generated at the press of a button
  • A central system reduces the risk of errors and saves hours of manual consolidation work
  • Lease incentive accounting, which used to take four to six weeks per quarter, can now be completed in under a week
  • New capabilities such as recoverability analysis and return compensation will be added to the system soon—reducing manual work even further

Aircastle is one of the world’s leading commercial aircraft leasing specialists, with a track record of delivering value for its investors through regular dividends. Over the past decade, its fleet has almost doubled in size—as of December 31, 2018, it owns and manages 261 aircraft, which are leased to 81 lessees in 44 countries.

Howard Brewer, Vice President Technical Operations at Aircastle, comments: “In my 12 years at the company, I’ve seen tremendous growth in the size and complexity of our operations. The reason we’ve been able to scale so successfully is that we have always focused on understanding our fleet down to the smallest detail. To make the right operational and financial decisions, you have to be able to see what’s coming—and that means you need a data-driven approach.”

Download the full case study now...