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Streamlining processes and boosting visibility with a powerful lease management platform

 

Summary

To keep its finances in sync with its aircraft and engine leasing partners, the Lufthansa Group needs to manage and monitor complex leases and contracts throughout their entire multi-year lifecycle.

SWISS, a member of the Lufthansa Group, has harnessed the AMT-SYBEX Leasepoint platform to build a sophisticated lease management solution, which has now been adopted group-wide.

By replacing spreadsheets and manual processes, the solution automates lease reporting, minimises the risk of errors, and helps to ensure that maintenance reserve claims are always timely and accurate. The application also provides audit trails and the data-input is validated through a 4-eyes principle, ensuring the correctness and quality of the data.

Key points

  • Enable substantial savings by enabling the Lufthansa Group airlines to make accurate maintenance reserve claims and track incoming claims in a transparent way
  • Provides a single source of truth for lease data for stakeholders across the Lufthansa Group
  • Eliminates errors by replacing spreadsheets with robust digital workflows
  • Accelerates analysis and reduces manual effort by automating reporting

The challenge

Like most airlines, SWISS and its sister-companies within the Lufthansa Group relied on a combination of spreadsheets and calendar reminders to manage the contracts for the leased aircraft and spare engines that make up 20 percent of their fleet. With the whole airline industry facing challenging economic conditions, SWISS wanted more control and visibility of lease conditions and lessor contribution claims’ status.

The solution

Working with AMT-SYBEX, SWISS replaced its manual, spreadsheet-based processes with a comprehensive lease management platform that provides a single source of truth for contracts and relevant financial and engineering data. All Lufthansa Group airlines as well as relevant central functions are now using the new system, which provides a 360-degree view of aircraft and engine leases across the group.

The benefits

  • Automates the generation and distribution of monthly reports to relevant stakeholders
  • Saves hours on answering queries from the business by digitising lease information into a standard, easy-to-access format
  • Eliminates the risk of spreadsheet errors and inconsistencies, and provides greater transparency for management and auditors
  • Increases visibility of leased aircraft across the group, and makes it easier to transfer lease information between Lufthansa Group airlines
  • Creates greater confidence in lease data and strengthens Lufthansa Group’s position in negotiations with lessors
  • Provides more detailed insight into maintenance reserve balances on a component level, helping to avoid disputes and ensure lessors pay the correct amount for maintenance work
  • Ensures information regarding the various lease transactions is centralised in one database, especially relevant when people are leaving the team or organisation

Lufthansa Group is the largest airline in Europe and the founding-member of the Star Alliance, the world’s largest airline alliance. With subsidiaries including SWISS, Austrian Airlines, Brussels Airlines and Eurowings, the company operates one of the largest fleets in the world, with over 700 aircraft, of which around 20 percent are leased from third-party lessors.

Fabiola Jaymond, Senior Manager Aircraft Asset Management at Lufthansa, comments: “Leasing is a complex business, and the ramifications are often misunderstood even within airlines themselves. It’s vital for asset management teams to provide accurate, timely information to help all kinds of stakeholders—from engineering to finance—make the right decisions about leased aircraft.”

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