July 10, 2019
CMS helps lessors be more efficient and more effective by consolidating data pertinent to the lifecycle management of leased assets. With comprehensive experience in both the aviation industry and CMS, Zeevo is ready to help your company effectively leverage the full functionality available in CMS.
“CMS can significantly improve your aircraft leasing operations. To ensure the success of your system’s implementation, the first step is to gather, organize, and setup a plan to maintain the system reference information.”
Setup for Success
Initial setup and ongoing maintenance of your CMS reference data is a must for optimizing your operations. Successful ongoing system optimization requires planning, policy and procedure definitions, and an ongoing investment of time of your trained team members. Performing ongoing updates to the core company, asset, and contract information is a requirement to be able to effectively leverage the comprehensive functionality available in CMS.
CMS can be configured to support non-lease agreements including engagement letters, residual value guarantees, servicing agreements, and general terms agreements (GTAs). Several more specific servicing types can be configured; examples include acceptance certificates, aircraft sale agreements, loan agreements, guarantees, and aircraft purchase agreements. Decide the system features your team are going to use and make sure the system is configured properly from the outset.
Company information is used through the system including asset setup, lease and LOI entry, and invoicing. Your CMS system should be kept up-to-date with all of your asset and lease related companies including any legal owners, financiers, trusts, lessors, lessees, operators, banks, and insurance servicers to name a few.
Payment Schedules and Invoicing
Bank branch and bank account details are required for invoicing and the allocation of cash settlements. just as currencies and exchange rates are required to facilitate currency conversions. Each receivables schedule requires a corresponding payment bank account to be defined. The selected account is used to output any required wire details on the invoice and to record the bank account detail when the customer makes a payment. CMS can also be configured to use a different bank account for different invoice types. Holiday calendars can be populated to track non-business days. Accurate receivable and late payment interest calculations require holiday calendar information. Non-business day information is used to calculate receivable due dates based on the countries specified in the contract terms.
Well-Defined Manager Roles and Teams
To support efficient business processes within CMS, the application should include well-defined manager roles/types and teams. Teams (of users) with designated manager roles can be defined based on any number of criteria; including but not limited to: customer teams, portfolio teams. The effective use of teams within CMS supports the designation of tasks and the distribution of automated notifications related to tasks within each team.
Technical Data Configuration
The Airframe, engine, landing gear, and auxiliary power unit (APU) models and maintenance plans data require different levels of ongoing maintenance depending on the type of technical details you want to track for each asset type. For detailed technical specification tracking component configurations, ATA codes, engine ratings, operational measurements, and operational weights should also be configured.
Accurate Technical Event and Cost Forecasting
For detailed and accurate technical event and cost forecasting, the CMS Knowledge Base (KBS) should be configured with the first run and subsequent run hour, cycle, and calendar limits and prices for all major components (airframe, engine, landing gear, APU) across all applicable operating environments, maintenance plans, and engine ratings. Detailed life limited part (LLP) analysis requires the configuration of LLP stack information including module, part, life, and price details.
“Which agreement details are relevant to your leasing platform? Proper policies and procedures, and a correctly configured system from the outset supported by trained staff will ensure optimized use.”
Start out recording the basic agreement details, including the asset, parties, and the term details. Track insurance stipulations and sub-lease information, while integrating your system to enable the attachment of reference documents, such as: amendments, side letters, and acceptance certificates, directly to the agreement record in CMS.
The feature set also supports the recording of lease term adjustments, and a variety of lease options, including extension options, early termination options, and purchase options. Non-lease agreements can be entered and linked to lease agreements for easy reference. A detailed contract event history showing all data changes and approvals is available to the business team associated with the lease.
Track the details of cash and non-cash securities, as well as financial statement obligations for the lessee. Set up fixed and floating rent, maintenance reserve, fee, and ad-hoc receivable payment schedules and invoice customers. Detailed customer statements can be generated on demand.
In addition, tracking of asset provisions, such as: utilization reporting requirements, delivery details, and redelivery conditions for each agreement, is also supported.
A number of non-lease agreement types can be configured. For example, non-disclosure agreements, loan agreements, residual value guarantees, and sale agreements. The agreement details, including any asset, components, parties, and the term detail, are recorded. Similar to lease agreements, integrate your system to enable the attachment of any relevant non-lease reference documents directly to the agreement record in CMS.
The feature set also supports the assignment of a business team to be responsible for the non-lease agreement. Fee and ad hoc receivable schedules can be set up and invoiced as needed and securities and insurance stipulation detail tracking is also supported.
Disclaimer: These insights are independent articles and have not been authorized, sponsored, or otherwise approved by AerData. Corporate Management System (CMS) is a trademark of AerData.
About Zeevo Group LLC:
Zeevo Group LLC (“Zeevo”) is a leading global professional services company, delivering advanced solutions designed to reinvent our clients’ operations and unleash their competitive edge. Combining unparalleled experience and deep industry expertise in improving the effectiveness and success of processes, policies, teams, and technology, Zeevo delivers proven results that create sustainable value for our clients’ shareholders and achieve their desired vision. Our business-led, technology-enabled solutions cover all aspects of business, including process design, performance improvement, operations and IT optimization, and finance transformation. www.zeevogroup.com
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