Aircraft lessors are discovering how digitalizing leasing operations simplify and streamline Back-to-Birth (BtB) traceability. We uncover how to retain your fleet’s true value.

During the early 1980s, aircraft operating leases accounted for only 1.7% of the global aircraft operating market. By 2021, leased aircraft comprised 51% of the commercial fleet. These noteworthy growth statistics indicate that airlines see great value in leasing aircraft. Aircraft lessors let airlines expand their fleets for a set period without the financial burden associated with aircraft ownership.

Aircraft leasing operations demand highly involved, laborious, and time-consuming procedures. At the core of these processes is the documentation that proves the value of the lessor’s asset.

The complexity and time span of delivery and redelivery procedures, as well as detailed contracts, often catch airlines off-guard. Manual document and data processing methods are increasingly becoming obstacles to many aircraft lessors and lessees.

With the upsurge of digital transformation in aviation, the benefits of digitalizing aircraft leasing operations span far beyond minimizing paper trails.

Impact of Poor MRO Documentation in Aircraft Leasing

Although aircraft lease agreements are extensive and detailed in technical, operational, and legal requirements, their complexity doesn’t eliminate lessor-lessee misunderstandings. Lessees look only at their own operation and lease term, while aircraft lessors look beyond the redelivery of the aircraft. As such, they often interpret certain requirements differently.

For example, back-to-birth traceability (BtB) of life-limited parts (LLP) requires strict tracking and recording of the total operational life of the part. The lessee might use maintenance software to record the total time of each LLP. However, the aircraft lessor requires more detailed documentation: proof of every step in the LLP’s life, including the consumed time in flight hours and cycles. They must substantiate their asset value with 100% certainty. Poor quality documentation isn’t admissible.

Two other requirements often cause misunderstandings: maintenance, repair, and overhaul (MRO) documentation and records presentation and consolidation.

Lessees must ensure the lease requirements governing repairs and documentation are achievable. They should also confirm consistency with industry practices and manufacturer guidelines. If the lessee’s maintenance organization capabilities don’t match the requirements—or they haven’t made provisions from the start—retrieving the needed documentation can be extremely time-consuming. Building a complete historical records file will seem almost impossible.

Furthermore, different expectations of records standards can lead to delays, resulting in additional unnecessary costs.

Many aircraft lessors still work with paper copies of MRO and other critical documentation. However, this archaic process locks key information in stacks of paperwork that can’t be efficiently extracted and processed. Digitizing documentation and automating record keeping can be a game changer, providing significant value increases for both the lessee and the aircraft lessor.

Why Aircraft Lessors Should Consider Digital Documentation Solutions

Many facets of aviation are undergoing digital transformations that simplify and improve the accuracy of big data management and connectivity. Making the most of these developments means better products and services for passengers. It also significantly improves overall operational efficiency.

Automated features, dynamic digital record, and data processing saves aircraft lessors and airlines a noteworthy amount of time and money in several ways:

1. Seamless Cooperation and Information Sharing

Airlines use airworthiness software to streamline maintenance, reduce personnel workload, and cut printing costs. However, the documented files aren’t always searchable, complete, or easy to retrieve. So, aircraft lessors must place representatives on-site to sort records manually and scan documents for their record system, compliance, and next customer review.

Employing continuous digital record sharing between lessees and aircraft lessors during the entire aircraft operating period can significantly reduce labor and travel costs, transition delays, and penalties. Plus, during the end-of-lease transition process, all documents are readily available to the aircraft lessor for remote evaluation. This enables the lessor to prepare for the delivery process months in advance.

2. Operational Efficiency and Adaptability

Automatically processing digital records makes it easy to back them up, reducing the risk of loss or damage. It also limits access to only authorized parties, which improves data security. Records can be accessed and used more efficiently as well.

For example, instead of searching through thousands of paper records manually, you can simply do a digital database search and retrieve the required information within seconds. Once located, you can instantly send or share the specific data with the requesting party.

This level of data organization improves operational efficiency and accuracy while reducing manual workloads. It also minimizes the risk of delays at return. No one wants to pay thousands of dollars daily on an aircraft that can’t be used simply because of missing records.

3. Uncover Insights from Existing Data

While scanning or uploading paper documents for digital storage may reduce physical office storage space, it doesn’t provide aircraft lessors with reports, automated error notifications, or maintenance tracking. By employing dynamic processing software, you can gain real-time insights on demand from anywhere at any time.

In addition, effective audits ensure you know the location and condition of every asset. They provide accurate records that improve compliance, management, asset value, and depreciation tracking. This enables relevant parties to make strategic financial decisions.

4. Preserving the Underlying Value of the Asset/Aircraft

Aircraft records are essential for proof of compliance to gain a Certificate of Airworthiness and to determine aircraft value. Records offer insight into aircraft historical operations and maintenance—both indicators of future reliability and longevity. For example, an aircraft that isn’t flown frequently or travels in polluted environments is more prone to engine corrosion.

With dynamic historical record keeping and automated data processing, information and reports are on-demand for prospective buyers. Digital records also have a significant advantage in terms of data quality. Paper checks are sometimes illegible and prone to human error. But digital solutions will automatically check data for validity and coherence; for instance, typos in serial numbers are commonplace, but with an automated system, these errors can be found and corrected before a major issue arises.

Simplify and Streamline BtB Trace Insights with ProvenAir

Aircraft lessors know accurate and highly detailed historical data lies at the core of their business. With many hands involved in aircraft operations and maintenance, ensuring the submission of consistent and comprehensive documentation can be challenging and cause costly delays.

ProvenAir simplifies and streamlines data capturing and processing. The service platform dynamically generates consistent BtB trace insights for engines, commercial landing gear, and other LLPs. ProvenAir’s system uses proprietary algorithms and artificial intelligence (AI) to scan and sort maintenance records. It accurately interprets LLP usage and creates exception reports, and traces timelines for landing gears, engines, and auxiliary power units (APUs).

The ProvenAir platform also enables you to identify gaps in full BtB instantly. You can run real-time reports for any assembly, sub-assembly, or individual LLP.

Get in touch with the ProvenAir team today to gain more value out of your data while saving significant time and money and enjoying a reduction in human errors.

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Aircraft Lessors, What’s Your Fleet Really Worth? How Digitizing Your MROs’ Documentation Helps Retain Your Fleet’s True Value