Lease Management – Aircrafts, Engines and Components
Overview
High-value parts often place an economic burden on operators to purchase parts outright thus making lease a super attractive alternative. Moreover, lease provides a great option for operators in case of emergency. Tracking lease usage in terms of times and cycles, monitoring and managing maintenance events (scheduled and nonscheduled) are all critical and come with a significant administrative burden on or the lessor and lease alike. The accounting and reporting for leases (operating and financial lease) presents its own set of unique challenges.
Hours and cycles get recorded against each lease, so lease billing reflects how the part was actually used. This supports both operating lease and finance lease agreements, whether you lease out one engine or manage aircraft parts leasing across many customers.
Real Business Value from Aviation Lease Management
Power Aero Suites helps lessors bill accurately, keep track of leased parts, and cut manual work at month end. Leases can be managed across management structures and in multiple currencies.
Accurate Monthly Billing
Each lease follows its own billing method: flat rate, flat rate plus overrun, or usage-based billing. Charges are calculated from recorded hours and cycles, which reduces billing errors and customer disputes.
No Missed Overrun Revenue
Minimum and maximum limits for hours and cycles are set on each lease. When usage goes past the agreed limit, overrun charges get added to the invoice without manual checks.
Clear View of Leased Parts
Leased parts are selected from the item master, with available stock shown at the time of selection. Teams can see which parts are out on lease, with which customer, and under what terms.
Fair Billing for Partial Months
When a lease starts or ends mid-month, the system calculates a prorated lease billing amount. Customers pay for the days the part was on lease, and finance teams avoid manual adjustments.
From Spreadsheet Tracking to Connected Aircraft Leasing Management
Challenge
Aircraft parts are expensive, so many operators lease engines and components instead of buying them. Lessors then need to track every lease, its usage, and its billing terms. When this sits in spreadsheets, hours and cycles get missed, and overruns go unbilled. Partial months get calculated by hand, which leads to delayed invoices and billing disputes. This gets harder when one lessor manages leases for many customers.
Solution
Power Aero Suites was created to handle the burden and complexities of lease transactions from beginning to end in its single well integrated platform. Specifically, PAS handles:
- Generating lease agreements and spec sheets
- Periodic web updating/reporting of usage data and delivering reminders letters
- Tracking and automatic billing for overage of times and cycles
- Managing and invoice for service activities such as maintenance, insurance and taxes
- Managing maintenance events – schedule and nonscheduled
- Depreciation of the lease asset, where applicable, via its asset tracking and accounting capabilities
- Reporting on lease economics – quasi-P&L for each leased asset
- PAS is compliant with FASB ASC 842 and IFRS 16 standards
- PAS supports operating and financing type leases
Tools to Manage Leases from Setup to Invoice
Power Aero Suites brings lease agreements, usage records, and lease billing into one aviation lease management software platform. It works across management structures and currencies.
Lease Setup & Lifecycle Control :
Create leases with customer details, references, contacts, salesperson, and management structure. Choose between operating lease and finance lease types. Each lease moves through Draft, Active, and Closed states, and billing calculations start only once the lease is active.
Three Lease Billing Methods :
Set each lease to flat rate, flat rate plus overrun, or usage-based billing. Flat rate charges a fixed monthly amount. Overrun adds charges past the agreed limits. Usage-based billing charges for actual hours and cycles recorded.
Hours and Cycles Tracking with Usage Limits :
Record operating hours and cycles against each lease, where one flight from origin to destination counts as one cycle. Set minimum and maximum hours and cycles to define billing thresholds, and review usage history and notes in one place.
Prorated Lease Billing :
When a lease starts or ends partway through a month, the system prorates the charge for that period. This removes manual date calculations and keeps the first and final invoices accurate.
Service Components & Multi-Currency Billing :
Add maintenance, insurance, and taxes as predefined service components that pass through to the customer. Record leases in local or foreign currency, with an FX rate applied, for customers billed in different currencies.
Inventory-Linked Leasing & Invoice Workflow :
Select leased parts directly from the item master, with available stock quantities shown. Review base charges, usage, overruns, and service components before invoicing, then preview, send, post, or cancel invoices from the same screen.
Integrations & Resources
Power Aero Suites connects lease records with inventory, invoicing, and accounting in the same ERP. Leased parts come from the item master, and lease invoices flow into finance without re-entry. This helps lessors manage aircraft engine lease management and parts leasing without switching between systems.
Helpful Resources:
Track leases, usage, and billing in one view, so invoices go out on time and match the agreement.
TAKE THE FIRST STEP
Bring Your Leases and Billing into One System
Lease billing works better in one system than in spreadsheets and manual calculations. Whether you lease out a single engine or manage aircraft parts leasing across a full customer base, Power Aero Suites gives your team one place to track leases, usage, and invoices.
Request a demo to see how the system can support your aircraft lease management and billing work.
