To accurately predict the value of a transaction over the life of a lease, a model of the maintenance reserve collection and expenditures or cash flow must be created.
AVITAS can review the lease agreements and airline operational characteristics including utilization and historical maintenance costs to accurately predict a maintenance reserve cash flow model.
Maintenance reserves provide the risk mitigation to ensure your asset will have adequate funding to keep up with the scheduled heavy maintenance. To ensure the funding is commensurate with the utilization and the forecast maintenance, AVITAS will work directly with the operator to monitor utilization and heavy maintenance work scope. Upon completion of a heavy maintenance visit, AVITAS will review the invoices to ensure only those items that are eligible for reimbursement are funded.