SofemaOnline takes a look at the Purpose of Maintenance Reserves within an Aircraft Leasing Arrangement

Introduction

The concept of Maintenance Reserves is designed to “protect” the Lessor by ensuring funds are available to cover major activities.

Maintenance reserve payments are typically calculated on flight hour, flight cycle, and/or calendar basis and are usually paid on a monthly basis in arrears.

At the time an aircraft is taken out of service for maintenance, the lessor should already have funds to cover the cost of outstanding maintenance.