Скачать или смотреть Basic Understanding of Maintenance Reserves

Dive deep into the critical financial mechanisms governing aircraft leasing: Maintenance Reserves (MRs) and Power-by-the-Hour (PBH). Learn how MRs, often referred to as "Supplemental Rent," function as a vital tool for lessors to mitigate credit risk, ensuring funds are available to cover the "maintenance utility consumed" by the lessee.

These funds accrue in advance for predictable, high-cost scheduled maintenance events, such as heavy structural inspections, landing gear overhauls, and engine performance restoration.

MR rates are typically calculated based on utilisation, such as per Flight Hour (FH), Flight Cycle (FC), or on a Calendar basis.

Explore how PBH is transforming the aviation maintenance industry by shifting unpredictable engine costs to a fixed, hourly operating expense paid to the service provider (OEM or MRO).

PBH converts irregular expenses into small, consistent per-hour payments, which improves airline budgeting and protects cash flows. This model creates a natural alignment among the airline, lessor, and maintenance provider, ensuring consistent, professional maintenance which protects the engine’s long-term asset value. Ultimately, both MRs and PBH protect the asset's full value by accumulating funding that offsets depreciation due to maintenance consumption.

Ready to master complex maintenance economics and asset protection strategies? Get in touch with aeropoda to discuss specialized aviation asset management and risk mitigation solutions.
Email: [email protected]

Disclaimer: The information provided draws on technical analyses, industry practices (e.g., maintenance reserve concepts, and PBH agreements), and financial reporting examples (such as from AerCap Global Aviation Trust). This content is for general familiarization and educational purposes only and does not constitute financial advice, warranty, or guarantee of performance.

#MaintenanceReserves #PowerbytheHour #PBH #AircraftLeasing #AviationFinance #AssetValue #EngineMaintenance #TechAssetManagement #AerCap