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Aviation Contract Negotiation

Negotiating aircraft or engine purchase agreements can be a complex and time consuming process; however the stakes are high with millions of dollars to be gained if done professionally.

Aviation Asset Management (AAM) will assist with the preparation of negotiation strategy, prepare a detailed negotiation plan and when requested attend commercial negotiations.

Preparation for Purchase Negotiation

Once the appropriate aircraft type has been chosen to serve the airline's network AAM staff have many years experience dealing with aviation equipment manufacturers and can assist in the preparation for commercial negotiations.

This support can include:

  • Preparation of Requests for Information (RFIs)
  • Preparation of Requests for Proposal (RFPs)
  • Managing the distribution of, and responses to, RFIs and RFPs
  • Preparation of negotiation strategy
  • Preparation of the negotiation plan

Commercial Contract Negotiation Support

AAM staff have also led commercial negotiations for the new purchase of

  • turboprop aircraft
  • regional jet aircraft
  • single aisle fleets
  • twin aisle fleets

with aircraft and engine manufacturers and can assist in the commercial negotiations with a view to maximising cost savings and cost benefits, both short and long term.

This support can include:

  • Analysing the responses to Requests for Information (RFIs)
  • Analysing the responses to Requests for Proposal (RFPs)
  • Analysing the commercial impact of the competitive offers
  • Identify the shortcomings of each commercial offer and advise negotiation tactics to improve the offers

Once best and final commercial offers have been agreed, AAM can:

  • Assist legal counsel prepare letters of intent
  • Assist legal counsel negotiate the final detail of the purchase agreements

AAM staff can also support aircraft and engine leasing negotiations on behalf of operators.

Lease Agreement Negotiation Support

AAM staff have successfully led commercial negotiations for the leasing of turboprop aircraft, regional jet aircraft, single aisle and twin aisle fleets with aircraft and engine lessors, resulting in significant savings for our clients.

The AAM team has conducted negotiations for the sale and leaseback of new narrow body and wide body commercial aircraft fleets.

We understand the commercial implications of the terms and conditions of lease agreements.

If the preferred solution is to lease aircraft capacity AAM can:

  • Source suitable candidate aircraft
  • Prepare lease negotiation strategy
  • Prepare a lease negotiation plan
  • Liaise with legal counsel in order to prepare the final lease documentation
  • Engage with the lessor to negotiate an appropriate Letter of Intent
  • Provide ongoing lease negotiation support
  • Review and recommend the final version of the lease agreement

Lease Advice and Support

During the term of an aircraft lease contract, specialist AAM staff can comprehensively audit contract compliance to ensure that all operational and commercial requirements are being met and alert both operators and lessors of any discrepancies that may occur. AAM can also provide advice as to how to resolve those shortcomings.

Through this specialised service AAM can provide cost effective solutions to leased asset management.