Everything you need to know about Aircraft Repossession by AMROS Global

Aircraft Repossession is a crucial procedure in the aviation industry that safeguards stakeholders' interests and upholds operations' integrity. As aircraft financing and leasing arrangements are commonplace, repossession serves as a safeguard against lessee defaults, financial instability, or breaches of lease agreements.

Today, the topic of Aircraft Repossession has become extremely important against the background of the GoFirst crisis - it is the latest airline in the Indian aviation sector that has filed for bankruptcy.

"More than fifty planes are in uncertainty. The aviation watchdog has put requests from lessors to repossess these aircraft on hold, indicating that they cannot reclaim them due to bankruptcy proceedings," Cipriano Pizarro, head of Fleet transitions at AMROS Global, says.

With this article, we aim to explain why you should choose repossession and describe the AMROS Global approach to handling this procedure.

THE IMPORTANCE OF AN AIRCRAFT REPOSSESSION

Aircraft Repossession is characterised by higher costs than a normal redelivery process due to various factors, such as legal expenses incurred in navigating complex contractual arrangements and jurisdictional regulations, operational costs associated with locating the aircraft, securing storage options, deploying specialised personnel, and managing transportation logistics. So why should you prioritise repossession, and in what cases you cannot avoid it??

Financial Protection

Aircraft Repossession helps lessors and creditors protect their financial investments. If lessees cannot meet their financial commitments, repossession enables lessors to regain control of the aircraft and reduce the risk of financial losses. Using their lease agreement rights, lessors can safeguard their assets and consider other options for leasing or monetising the aircraft.

Legal Compliance

Repossession is conducted within a well-defined legal framework, ensuring a lawful and transparent process. The terms and conditions outlined in the lease agreement serve as the foundation for repossession procedures, clearly defining the rights and responsibilities of both lessors and lessees. Following legal requirements, everyone involved is treated fairly, and their interests are protected.

Risk Mitigation

Opting for repossession allows stakeholders to mitigate financial risks and exposure to volatile market conditions. When a lessee defaults, repossession enables prompt action to minimise losses and proactively manage the lessor's risk. By regaining control over the aircraft, lessors can replace underperforming assets, optimise their portfolio, and explore opportunities that align with market demand and profitability.

Asset Preservation

Repossession ensures the preservation of the aircraft's value and condition. Lessors can protect the asset from potential damage, misuse, or neglect by regaining control. By preserving the aircraft's market value, it can be more easily leased or sold in the future.?

STAGES OF AN AIRCRAFT REPOSSESSION PROCESS

At AMROS Global, we employ a comprehensive approach to repossession, so the whole process consists of several additional phases and the repossession phase itself. Let's consider each of them in more detail.

The repossession stage marks the beginning of the aircraft recovery process and includes the following steps:

1. Establish Aircraft Location

The first step involves determining the precise location of the aircraft in question. This stage ensures the correct aircraft is targeted, minimising the risk of repossession errors or legal disputes.

2. Secure Storage Options

Once the aircraft's location is determined, we explore suitable storage options. The goal is to safeguard the aircraft against potential risks associated with vandalism, theft, environmental damage, and unauthorised access, maintain its condition, and preserve its value throughout the repossession period.

3. CAMO?

The CAMO stage concerns managing the aircraft's technical aspects, ensuring its airworthiness and compliance with regulatory standards.

The following teams are involved:

1. AMROS Global CAMO Team

2. AMROS Global Part-21 Team

3. AMROS Global Commercial Maintenance and Components & Inventory Team

4. Part-145 Maintenance Team

4. AMROS Team Deployment

At this stage, an experienced and specialised team is dispatched to the aircraft's location. Do not doubt that these are professionals proficient in repossession procedures, legal aspects, and logistics. Their presence at the aircraft's location ensures a seamless and efficient repossession process, minimising disruptions and potential conflicts.

5. Management of Airline Support

In Aircraft Repossession, the level of airline support can vary, resulting in two scenarios: soft repossession with cooperation from the airline and hard repossession with limited or no airline support.

In a soft repossession, we establish a cooperative relationship with the airline to coordinate logistics, access documentation, and ensure compliance with regulations.?

In a hard repossession, our team takes a comprehensive and self-sufficient approach, legal knowledge, and logistics to navigate the complexities independently.

Regardless of the level of airline support, our goal is to execute the repossession process efficiently, adhering to legal obligations and ensuring a seamless transfer of the aircraft into our controlled environment.

6. Ensure Parking & Storage/Maintenance Option

The AMROS team ensures that the parking & storage facility aligns with regulatory requirements and possesses adequate infrastructure and maintenance capabilities. This meticulous evaluation guarantees the protection of the aircraft and mitigates potential risks associated with improper storage conditions.

7. Ferry Flight to Maintenance Facility (if necessary)

The importance of the ferry flight lies in its ability to securely move the repossessed aircraft from its original location to the designated storage facility. Utilising our team's expertise in flight operations we minimise operational risks and ensure the aircraft's physical integrity throughout transportation.

8. Digital Technical Records Management

Meticulous management of technical records is fundamental for establishing ownership and compliance with regulatory requirements. Accurate and up-to-date documentation is essential for future inspections, maintenance, potential redelivery, or aircraft resale.

To streamline this process, we use our own tool called LISA. LISA enables us to organise, digitise, and securely store records. Additionally, we use advanced scanning technology to convert physical documents into digital copies when necessary.

To learn more about LISA, follow the link.

9. Future Plan/Aircraft "Redelivery"

This plan may involve identifying potential lessees or buyers, exploring leasing or sales options, or even considering asset disposal if necessary. The importance of this step is to optimise the value and profitability of the repossessed aircraft. We tailor a plan that aligns with our client's objectives and market dynamics by analysing market demand, assessing leasing rates, and considering the redelivery conditions in our project management.

The following teams are involved:

1. AMROS Global CAMO Team

2. AMROS Global DTAM Team?

3. AMROS Global Ferry Flight Team

4. New Lessee Phase-In Team

5. New Lessee CAMO Team

10. Delivery

The delivery stage smoothly transitions the aircraft's CAMO to the next lessee.

The following teams are involved:

1. AMROS Global CAMO Team

2. AMROS Global DTAM Team?

3. AMROS Global Ferry Flight Team

4. New Lessee Phase-In Team

5. New Lessee CAMO Team

CONCLUSION

Aircraft Repossession is a critical process that requires expertise, precision, and strategic planning. That's where AMROS Global comes in. Our Aircraft Repossession Service is designed to protect everyone involved, meet legal requirements, and make the transition as smooth as possible.?

Choose AMROS Global and experience the pinnacle of Aircraft Repossession services!

To learn more about Aircraft Repossession by AMROS Global, follow the link and read a story about the repossession of an aircraft from an airline into our CAMO.

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