A significant and not un-noticed Achilles heel to the majority of aircraft owners is the lack of regular interface with the lessee / user and a failure to undertake due diligence, operational standards audits and appraisals on the carriers / users throughout the full term of the lease period. 

A further weakness is that within the majority of asset owning organisations there is a lack of operational, commercial, technical aviation experience and qualifications.

The full ramifications of which are that warning signs of poor operator performance within the commercial, operations and engineering divisions of a carrier go unobserved until the situation runs critical.

A basic and incorrect assumption made is that any redress of grievance would be resolved either by persuasion or through a legal process. However, the globe is littered with failed carriers and grieving Lessors who wear the scars of bankrupt carriers, repatriated abused neglected assets, reserves payment shortfalls, outstanding lease payments and impounded assets pending release by the liquidators and courts.

Litigation is expensive and in the case of a bankrupt, liquidated or insolvent company it is an almost fruitless task shadowed by loss of revenues where assets are impounded. Default Management is costly and time consuming and can be avoided by a more proactive approach.

In specific, the asset owners need to focus regularly on: –