While the attractive interest rates from EDC are certainly worth consideration, it’s common for profitable, well-established businesses to seek a secondary option. Viking offers lease finance options through its sister company Longview Aviation Asset Management (LAAM).
The LAAM application process also includes a financial and operational due diligence, which could require a guarantor, whether that be a personal high-net-worth individual, corporate, or a government, as in a sovereign guarantee. We will also require annual audited financial statements during the lease.
In order to cover the cost of maintenance requirements on the aircraft, there are two options; maintenance reserve payments or Viking's Maintenance + program
Under this scenario the aircraft lessee will make a series of reserve payments to cover upcoming major maintenance events on the aircraft such as engine, propeller and landing gear overhaul.
“If you fly 100 flight hours and 50 cycles one month, you pay a certain rate for the life consumed on the asset. If you fly 50 flight hours 25 cycles the next month your reserve payments change and you are charged only for the actual life consumed. You just turn in your usage reports at the end of each month and pay for each area of the aircraft covered by the reserves.”
“We recover the reserves monthly as security to protect the aircraft and its components. It never becomes our own money. For example, the operator would access the reserve funds after an engine or propeller returns from rework that is covered by the reserves. If no work was completed during the lease term you would receive all your reserve funds back when you make your final lease payment.”
- Rob Mauracher
Viking Maintenance+ Program
- The M+ program provides the operator with budget predictability, a simplified ordering process, and expedient parts logistics through a Viking-managed repair, overhaul, replace system, as well as subscriptions to up-to-date technical publications and maintenance tracking/planning tools.
- Viking provides complete Airframe, Systems, Propeller, and Avionics support for the the operator DHC-6-400 fleet. Engines are covered by our partner Pratt and Whitney
- Aircraft are to be operated and maintained in accordance with OEM recommendations and airworthiness limitations, including POH/AFM and Inspections/Maintenance Manuals.
- The operator is responsible for all late exchange, return, core charges and for customs fees and local transport. Viking ships Delivered at Terminal (DAT).
Says Mauracher :
“We supply all the rotables you will require under an exchange program and manage your rotable repair and overhaul activities so you don’t have to make a huge investment in inventory, manage multiple repair and overhaul vendors, nor burden your bottom line with the staff required to oversee all these functions. We send you the part you need; you send your broken part back to us, and we repair it and it joins our pool, waiting and ready for the next M+ customer who requires it. In M+ the operator selects coverage from the services offered, from LRU’s, to all rotables, to engines, brakes and propellers. There’s just one fee per flight hour and one fee per month.”