Leases and aircraft status

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joefremont
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Leases and aircraft status

Post by joefremont » Sat Jun 15, 2019 6:17 pm

I have seen a few VA's that have leased aircraft that have a fairly low repair status with a requirement that they be repaired back to 100% at the end of the lease. Often these aircraft are leased by new VA's created with trial accounts who never fly the aircraft but hold them a few days and cancel the lease, or just let it end at the end of the week when they have no funds to pay.

Basically VA's are using the lease system to get free repairs of there aircraft. Some Ideas I had to fix this.

Ideas:
- A VA should not be able to require someone who leases there aircraft to repair it to a state better than they received it.
- A VA should not be able to lease an aircraft with a repair status less than 95%.
- If a VA that leased an aircraft does not have the funds to repair it, then the aircraft is returned without being repaired, maybe a loan is created between the two VA's to pay it back (if the leasing VA goes into bankruptcy then obviously they won't be able to pay it back).

We would probably not implement all of these, if we do anything at all, but wanted to get some feedback.
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MrJTSZ
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Re: Leases and aircraft status

Post by MrJTSZ » Sat Jun 15, 2019 8:35 pm

Sounds good!
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Buschpilot
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Re: Leases and aircraft status

Post by Buschpilot » Tue Jun 18, 2019 5:19 pm

I have already taken care of the rental of some aircraft for our VA myself.
Rental is a small source of income for our VA.
This allows us to cover the parking fees better.

But at the moment there are such dumping prices.
Thus a renting is not worthwhile any more.
The low prices hardly cover the expenses for parking fees and maintenance.

Normally I rent an airplane to test whether it fits to the VA fleet and it is worthwhile to buy such an airplane.
So you should think about renting a plane beforehand.

The rental contract should then also be kept.
If the aircraft is returned prematurely, I would be for a compensation, for the loss of the rental income.
Best regards
Mike

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joefremont
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Re: Leases and aircraft status

Post by joefremont » Tue Jun 18, 2019 9:16 pm

You have great freedom in setting the prices for your aircraft leases, and maybe I should increase the default price a bit to compensate for extra costs, but you are of course free to set a higher price.

We pretty much assumed that if a lease is cancelled, they have already paid for a period of time they are not going to use, and if you can turn around and rent the AC again you have the chance to get double paid.
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joefremont
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Re: Leases and aircraft status

Post by joefremont » Tue Jun 18, 2019 11:35 pm

I have been doing some work on this, my basic idea is that if someone rents an aircraft and does not use it for a month, they should not have to repair it. Also someone should not be able to lease an aircraft that already needs a B-Check or more. This will make it so that when an aircraft is rented, the maximum required repair status will be less than the current status with enough margin so that if the 0.2% decline happens for idleness it does not trigger the required repair.
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