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Repossessions and remarketing after the repo
05 January 2009
Aircraft financiers planning to repossess aircraft or expecting them returned should be prepared. New research suggests that aircraft will be parked for between three months to over a year, on average, and cost owners more than $780,000 before they earn new lease rentals. Sophie Segal reports.
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Repossession
repo
aircraft repossession
aircraft remarketing
Sage-Popovich
IBA
"It's pretty exciting walking through customs with $30,000 in cash strapped to your stomach," says one lessor. "But you need it when you are repossessing an aircraft."
Almost every hostile repossession guarantees at least one good story. In extreme cases pilots have ended up in African jails. One owner forgot to remove full food trolleys from the galleys and it took months to remove the rotting food smell even after seats were removed. On another repossession the consultants and lawyers sent to seize an aircraft ended up trading blows with maintenance engineers (not surprisingly the engineers won). Most lessors and bankers who have been in the industry for more than a few years have at least one good repossession tale.
But once the excitement of the repossession is over the hard work really starts. Research by IBA, a leading aviation consultancy, which has tracked every repossession since 1999, suggests...
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