RevolutionizingAircraftEngineLeasing,FinancingandMROSectors

Dear9100+MembersofInt’lAircraftEngineAssociation,IhavebeenadvocatingThrust Leaseprogramfor severalyearsat several conferencesandcompanieswhereaeroenginesbecomeacommodityrevolutionizingtheengineMRO,leasingandaircraftfinancingsectorsdramatically.Thrust Leasewill separate theengine fromairframeentirelyeven right fromtheaircraft production line opening doors to more versatile investment vehicle with a longer maturitywindow.Overtheyears,Ihaveheardresponsessuchas“Whowouldinvestinnewairframeonly?”,“Wearealreadydoingit!”,or“Wemusthavedoneitbefore.”untiltheCFOofamajorfirmfinallysaid“Whywehaven’tdonethisbefore?”whilesigningaproposalthatIputtogether.Airlinesattheendofthedayneedlift,basicallyenginestofly.TheycommittoPower-By-HouragreementsdepartingfromdealingwithMROentirelywhilefinancingitwithmonthlypaymentsandcoveringtherisksassociatedwiththeEISofnewtechnologies.Oncetheaircrafthitssecondengineshopvisit,airlinestakeoverengineMROtryingtolowermaintenancecosts.However,whydealingwithMROtobeginwith?Howaboutweoffer10enginesonleaseprovidingliftto5aircraftfor5to10yearsneverdealwithMROatall?Whenenginesrunout,wewillprovideyouwithanotheroneforfullrun.Wewillreplacethemaintenanceand ownership headacheswith flatmonthly lease ratewith nomaintenance reserves for the airlinesallowingthemtofocusontheircorecompetencywhichisflyingpassengers.Partcompaniesareprovidinggreentimeleaseenginesonsunsetenginemodelsduetopartout.Thatiswhattheyaredoing“it”now.WhatImeanbyThrustLeaseProgram,islet’sdotheoverhaulourselvesandleasetheenginebacktotheairlineseventuallyacrossALLenginemodels.Oncetheengineisrunout,asanaircraft/enginelessororpartcompanyperformtheoverhaulatamuchlowercostutilizingthefleetsize,technicalknowledge,andmaterialleveragetobuildtheenginebackupandlettheairlinesflyitforaflatmonthlyrate.Justimaginehowmuchextraworkandresourcesarecurrentlybeingutilizedonbothairlineandlessorsidestojustgothroughmaintenancereserveflush,checkingrecords,dealingwithtrueups,andmakingsureworkscopesgoingintoenginestomeetleaseagreements,hoursoflegalworktobuilduptechnicalprotectionatthe leaseterminationordefaults, regular inspectionof theassets justcheckingtheoperatorsmaintainingtheenginesandrecords….Millionsofdollarswillbeeliminatedoncethelessorisowningtheenginesandtakeoverthebiggestmaintenancecostoftheaircraftthroughitslifetime.ThrustLeaseisnotathreattoenginelessors.Theyjusthavetoreconfigurehowtheyleasetheengines.ThrustLeasewilldramaticallyreduceworkloadfortheEngineCentersdealingwithoperatorsandlessorsto get their invoicespaidat theendaswell asmarketingoverhaul services around theworld. Sellingoverhaulservicesto5000airlineswithIATAcodescanbesimplifiedtoonlyapproximately100lessors!!!Isn’tthatrevolutionizingtheengineleasingandMROindustry?ItriedimplementingThrustLeaseattheOEMlevelsinceallrequiredplayerswereunderoneumbrella,however, buy in from several P&Ls was a significant challenge. I am pulling together independentinvestors,lessors,partsuppliersandEngineCenterspartnerswhoareinterestedinbeingthefoundersofmodernizingtheengineindustry.Iaminvitingallinterestedparties,especiallytheairlines,tocontactmesothatwecanlaunchthefirstsuccessfulprogramstartingwithCFM56-5B/7Benginefamilies,17000+ofwhichareflyingoutthere.

RevolutionizingAircraftEngineLeasing,FinancingandMROSectors

IwillattendtheAeroEngineEuropeConferenceonSeptember15andavailabletodiscussthisfurtherwithallpotentialpartners.Otherwise,pleasecontactmedirectlyandwecandiscussthisone-on-one.Regards,HoomanDr.HoomanRezaeiFounder&President Int’lAircraftEngineAssociation(9100+Members)Mobile:+1(949)293-7284Email:hooman@aeroenginecloud.com