Loan Abatement Program

HomeLoan Abatement Program

While it may not be possible to avoid borrowing from other airlines, there are ways to keep those expensive costs to the absolute minimum! Once a part is borrowed and the AOG condition is resolved, contact Aviation Concepts to arrange an immediate replacement for the HIGH COST borrowed part. In many cases, due to our quality approvals and working relationships, the replacement part can be shipped directly to the loaning airline (RIK), avoiding the need for the maintenance to remove and reinstall, at the same time reducing in-transit days on loan!

Each transaction is individually structured, based upon unit value, the length of the loan or exchange period, and the customer’s requirements. Following are example terms:

Exchange, 30 Day Core Return

Exchange fees range from 10% to 15% of unit value plus repair costs. Loan fees are contained and terminated within the first few days of the borrowed period. Excessive Loan fees are avoided. An Additional exchange fee may be assessed after the first 30 days if core return is delinquent. Doesn’t a 10-15% exchange fee sound a lot better than 30 days of “Borrow” fees at 1.5%, 2.0%, and even up to 3% per day?

Low Cost Loan

Aviation Concepts’ loan fees are considerably lower than standard airline rates. Fees are case-by-case, based on the item value, condition and length of loan. Aviation Concepts basic loan fees are: 5.0% uplift or availability, 1.5% per day for the first 30 days of the loan. After 30 days, loan fees may be subject to a small escalation.

Short or long-term leases are also available and fully negotiable.

IATP Supplier Provided Parts

For IATP Members, parts can be consigned to your airline on a “No Charge” PO in consideration of “shared” pooling fees. See “Spares Pooling” page for more details.

Outright Purchase

In some cases an increase in spares may be the best way to terminate a loan and the same time avoid future loan costs and improve maintenance reliability. Again in many cases the purchased part can be shipped directly to the loaning airline as a “Repay in kind”

Charter Member

Founding Member

Aviation Concepts will make the transaction fit the requirements.

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