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Lease Renegotiation
Medium
Jan 27

Renegotiate A7-AAC lease terms with Avolon

Lease for A7-AAC expires on 5/7/2026. Market rates have decreased by 8-12% since lease inception. Renegotiation could secure better monthly rates or improved return conditions.

Potential Cost Savings
$985,647
Source
Market Rate Analysis
Current State· Before recommendation
Current monthly rate (36 mo)Existing lease rate obligations
$2.19M
Maintenance reservesRequired reserve contributions
$914K
End-of-lease provisionsRedelivery cost provisions
$549K
Total Projected Cost$3.66M
Recommended State· After recommendation
Renegotiated rate (36 mo)New market-adjusted rate
$1.47M
Reduced reservesOptimized reserve structure
$748K
Improved return termsFlexible return conditions
$454K
Total Projected Cost$2.67M
Before
$3.66M
After
$2.67M
You Save
$986K
AI Reasoning

Current market analysis shows similar Boeing 787-8 aircraft leasing at $713,875/month vs current rate of $793,194/month. Avolon has shown flexibility in recent negotiations with other operators.

Recommended Action

Initiate discussions with Avolon commercial team. Prepare counter-proposal with market rate data.

Affected Aircraft & Leases
A7-AAC
Boeing 787-8
LessorAvolon
Monthly Rate$793K
Lease EndMay 2026
View Lease
Generated Jan 27 via Market Rate Analysis