Why should I have a digital records budget?
Across the globe airlines are restructuring and modernising their business models to become more agile and operationally efficient through the adoption of digitalisation to protect and manage valuable corporate assets.
The commercial airline business model is witnessing an even greater dependence on the leasing market with many already turning to asset leasing and sale & leaseback structures to improve liquidity. As a consequence, leasing companies will take a more active role in managing asset values to reduce their risk exposure. This in turn is impacting how airlines manage a growing fleet of leased assets. Through the acceleration of digitalized end of lease software solutions such as ROAM and enhanced business processes, airlines can optimize operational profitability from reducing the likelihood of late returns and keeping the asset in service as long as possible.
The COVID effect is refocusing the commercial airline industry efforts in all facets. It’s widely acknowledged that the industry will recover, however, the shape and form will greatly depend on the readiness and ability to quickly adapt and change to the new business environment.
Airlines and Lessors are likely to be engaged in a high number of lease transitions over the coming years as operators seek to stabilise operational requirements in the wake of COVID and recent geopolitical issues.
Directly affecting airline profits are poorly managed lease return projects which continue to burn through cash reserves.
Bad projects can cost approximately:
Narrow body (A320/B737)
Wide body (A330/B777)
(Source: Ishka and IBA.aero, 2020)
Key issues for consideration
Key Engagement Drivers
Actively manage lease return projects and avoid overspending on penalty fees:
The Statistics
In a study performed by IBA.aero, they found that 80% of Airlines acknowledge that they cannot fulfill lease return conditions.
According to Boeing Capital Corporation in 2019 aircraft purchases viewed as a comparison between aircraft direct purchases vs sale / lease back transactions, it is evident that external finance (aircraft leases) are a growing fact of commercial aviation.
(Credit: Boeing 2019)
In addition to the above, Banks and Capital markets are taking a greater role in asset ownership. The result is that engineering leaders must align their processes with the commercial realities of how the financial market is evolving. In the below chart it is evident to see this progress:
(Credit: Boeing 2018)
ROAM is the solution
A solution called ROAM is a centralised web-based platform for asset record keeping, accessible by multiple stakeholders delivered by Gamit based in London, UK.
ROAM offers a full suite of solutions from digitalising paper to PDF at enterprise scale through to linking those PDFs with Maintenance & Engineering planning solutions and other digital solutions such as e-Techlogs.
ROAM works in harmony with most M&E systems to enhance the value to the data stored within them.
Engineering leaders using ROAM can optimize valuable staff resources to meet lessor end of lease requirements delivering a faster and more accurate outcome benefiting the airline bottom line.
Contact us to find out more about ROAM, the most advance software solution in the Aviation industry today.
Mark Turner - Business Development Manager : m.turner@gamit.co.uk