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Aircraft Parts, aviation, PMA

Spirit Airlines Will Own 14 More A319s

Are you selling aircraft parts to Spirit Airlines?  If not, then perhaps now is the time to approach them about the ways that your parts can improve reliability while saving money.

Spirit Airlines issued a press release detailing its quarterly performance and revealed that it was purchasing 14 A319 aircraft that it had previously been leasing:

On March 28, 2018, the Company entered into an agreement with an aircraft lessor to purchase 14 A319 aircraft, which the Company was operating under lease agreements.  The purchases of all 14 aircraft are scheduled throughout the second quarter of 2018, for an aggregate gross purchase price of $285.0 million, which will be reduced by the application of maintenance reserves and security deposits held by the lessor.  Effective March 31, 2018, the lease agreements associated with these aircraft will be classified as capital leases on the balance sheet until the closing of each individual sale.  All transactions are anticipated to be completed prior to June 30, 2018.

As those aircraft come off lease, this should eliminate artificial impediments to use of PMA on those aircraft.  There are many FAA-approved PMA parts that have been shown to increase reliability, and are typically more readily available than PC-holder counterparts that have long lead times.  The fact that PMA parts tend to be less expensive is simply icing on the cake.

About Jason Dickstein

Mr. Dickstein is the President of the Washington Aviation Group, a Washington, DC-based aviation law firm. Since 1992, he has represented aviation trade associations and businesses that include aircraft and aircraft parts manufacturers, distributors, and repair stations, as well as both commercial and private operators. Blog content published by Mr. Dickstein is not legal advice; and may not reflect all possible fact patterns. Readers should exercise care when applying information from blog articles to their own fact patterns.

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