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Capacity adjustments caused by Covid-19: The challenges of accelerated lease returns

When Covid-19 hits a prospering leasing market, the effects will be substantial. It is expected that significant capacity adjustments will lead to a wave of premature lease returns and present unprecedented challenges to aircraft operators (lessees) and leasing companies (lessors). 

This article provides a short-list of the most common problems aircraft operators face over accelerated lease returns with recommendations on how to resolve them to ultimately limit the cost of the aircraft transition process. 

Looking ahead: planning for the future

While Covid-19 will change the fundamentals of the aviation industry, it will also change the composition of aircraft fleets towards newer and more fuel-efficient aircraft. This transition however will challenge aircraft operators and owners over the next couple of years and requires a high degree of attention. 

Therefore, aircraft transition management will become a very important agenda item in the near future in order to limit the drain of cash towards lessors looking to recover lost lease fees through penalty schemes over contract non-compliances. 

Read the full article here

Further insights from Lufthansa Consulting’s aviation experts are available here

To learn more and discuss how your organization could benefit from Lufthansa Consulting’s expertise on Crisis Recovery, please get in touch at ALcrisis-solutions@LHConsulting.com.

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