Royal Aero to green-time lease one CFM56-3 engine to Sriwijaya Air

Royal Aero has leased a CFM56-3 engine on a green-time lease to Sriwijaya Air, one of the largest domestic carriers in Indonesia with over 700,000 passengers per month. The special advantage of green-time leasing is the minimal level of inspection at lease return. The leasing period equals the remaining operational life of the engine (green-time), therefore no costs are incurred due to inspection and repairs as the engine will not be put through a shop visit or further lease at return. Return conditions are very flexible which reduces the risk to the lessee and leasing contracts are typically easier to negotiate. “Airlines need fully operational, efficient aircraft while maintaining flexibility to easily reduce or increase fleet capacity in order to secure liquidity. Green-time leasing makes it possible to achieve these goals at minimum cost”, says Calum M. MacLeod, CEO of Royal Aero. This CFM56-3 engine leased to Sriwijaya Air is the third engine to go into the lease pool of “Alpha Aircraft Leasing International”, an engine lease fund initiated by Royal Aero and Gulf One Investment Bank in 2013. In total the number of lease engines managed by Royal Aero since 2005 has been increased to 25.