Blog

June 30, 2017

Types of Aircraft Transactions

It is possible to evaluate the delivery process of an airliner under four main scenarios;

1. Where the owner of the aircraft passes the new operator from the previous operator

2. When the aircraft is returned to the owner

   a. By the running operator
   b. By the operator on the verge of bankruptcy or bankrupted

3. Where the aircraft is delivered to the new operator by the owner

4. Where both the operator and the owner of the aircraft change

The first situation is probably the favourite of each technical rep among the processes from the most common to the least frequent. A balanced and controlled communication is manageable between both the owner of the aircraft, and the former operator as well as the new operator to ensure compliance between them. Even if it is the busiest environment as a workload, there are many advantages of instantly communicating with the previous and the next operator. Demands can be satisfied quickly. Expectations of the new operator determines the demands from the old operator. It enables to produce an intermediate solution for all kinds of problems. Since the old operator has full control over the plane and the records, all the questions of the new operator are quickly answered. A better project than a new operator who is not very rigorous and wants to fly urgently cannot be found.

In the second case two different situations may occur;

If the current operator is a company that continues to fly and does not have financial difficulties, the responsibilities of the rep is somewhat increased as the demands of the next operator is not clear. In the end, he has to make all his return readiness with the precision to answer the questions of the most rigorous operator. If there is a system on which the owner of the aircraft stipulates and demands regularly, things go smoothly. If it is done for a lessor that does not have a particular system, rep will use its knowledge and skill, so all its abilities will be tested.

If the current operator is on the verge of bankruptcy or bankrupted, then a process requiring a lot of patience and stability is waiting for the rep. The most common problems are the inability  to find people to address questions, the missing records of aircraft, and the inability to rectify critical problematic points that prevents flight. Most of the time is spent with a batch of unfinished documents and a struggle for reaching lost records alongside those who leave the job, for an airplane that has been detained and malfunctioning. Almost all time is used to recover the documents to ensure that the aircraft return to safe flight conditions.

In the third, there is no previous operator that can be referred to anymore. It is best to communicate with the CAMO team constantly for the aircraft entering a CAMO control. Of course, the CAMO crew can go a little slower because they don’t have a full practise on the entire history of the plane as dominant as its original operator. The process of transition from aircraft operator to CAMO control is probably managed by another team, so there may be some breakdowns. The good news is that the demands of the new operator are under the operator's standard of returning the aircraft. Thus there will be no or little difference to be closed between occasions. But in the opposite case, that is, if the demands of the new operator are higher than the standard of the operator returning the aircraft, many points will have to be re-examined. Additional descriptions, details, confirmations, assurance, and additional work take a significant portion of the work. Although the process is relatively rapid, it will be a cosmetic and format-focused process rather than technical work.

In the latter case, both the owner and the operator of the aircraft may change. This is probably the most intensive process for the rep. Just like a traffic policeman on cross roads, questions and requests from four separate channels will work for their administration without hitting each other. At the same time, it will update many documents and formats for both the new owner and the new operator. Even though it is progressing simultaneously due to a much more controlled and extensive team work, difficulties will arise due to the intensity. Long working hours will be most needed in this case.

Another common difficulty that is independent of the situations we rank is the geographical location of the owner of the aircraft, the former operator, the new operator, and the place of delivery. For example, the complexity becomes more apparent when a California-based firm delivers an aircraft operated in Portugal to a Malaysian operator at a maintenance center in the United Arab Emirates. Differences in time between countries, legal and bureaucratic differences, cultural differences between teams, work, sharing and interpretation differences all directly affect the process. We can say that the rep will be a full test of ability.

On the other hand, an increase in the number of aircraft that are shot when serious crashes happen like September 11, 2001, or can intensify projects at the end of the economic recession like the 2008 oil crisis. Increasing number of aircraft participating in flights due to low fuel prices, proliferation of newly established or bankrupt companies can also directly affect project intensity.