Acumen Aviation has released its 2023 Operational Review. Throughout 2023 the post-pandemic impact continued to be felt across the industry. Not so much in terms of recovery itself, as the industry again showed its resilience to withstanding such seismic shocks, but more in terms of changes experienced in client behaviours as well as shifts in business priorities and approaches. One example of this would be the dynamic shift experienced within aircraft leasing to prefer to proffer aircraft lease extensions over previously determined scheduled returns. Acumen, through shrewd observation and planning, successfully adapted to market demands and was well positioned to support these changes through several initiatives it had previously set in motion. Acumen continued with its steady acquisition of new clients; an eclectic assortment of banks, lessors, and operators.
Lease management, structuring advisory, trading, and remarketing remained buoyant and stable despite the continued and persistent challenges faced by the aviation industry. In the period, Acumen managed ten special purpose vehicles in Ireland as well as a combined pool of twenty-four assets, leased across the globe, with most funds backed by US and Japanese investors. Acumen was mandated by various operators and boutique lessors to source, trade, and remarket aircraft, whilst further participating in various aircraft investment opportunities, acting as a co-investor and servicer to asset-owning entities. During this period Acumen was also mandated to provide strategic structuring advisory services for a fund based in Ireland, specifically regarding investments in P2F converted aircraft. Acumen has built significant inroads into the financing of aircraft through its IFSC platform in India; lessors have expressed their desire to collaborate with Acumen and use this facility to serve the Indian aviation industry. Related to these positive developments, Acumen was also requested to advise a leading engine lessor on the opportunities of investing in the IFSC platform.
Technical asset management (TAM) services continued as the preferred one-stop for clients in addressing various aspects of asset management. The team supported a significant level of mid-term, pre-delivery, and delivery inspections, whilst, as was expected, surveillance and sales assistance services saw a modest fall, in line with global market activities. Aircraft are flying again and there is less appetite for the sale/transition of used aircraft, with many lessors and lessees opting instead to extend the leases of those assets previously scheduled for return. TAM’s dedicated client focus resulted in the further growth of service options being made available to the market. New services successfully introduced included final assembly line inspection (at OEMs during new delivery) and P2F aircraft delivery. In addition, its professional global engine management services team independently supported forty-five aero engine projects within the period. The TAM team continued to be chosen as the go-to service provider for monitoring distressed operators in the Asia region, and a combination of high-quality networking and acute local knowledge enhanced the support required in delivering challenging projects, and instilling clients with confidence, and ensuring expectations were appropriately met.
Advisory services recorded a high number of inquiries during this term, securing several new clients. Several customer portfolio valuations and bi-annual valuations were performed, and the total number of asset appraisals performed throughout the period exceeded fourteen hundred, over double that achieved in the previous year, plus an additional figure of over sixty assets valued for ABS. Acumen’s proprietary online asset valuation application, fin-S, launched last year, benefited from consistent upgrades and, at the time of this report, supported more than forty asset types and the associated engines fitted on those aircraft.
The CAMO team, also forming part of Acumen’s consultative service cluster, was rewarded for its efforts, retaining its previously awarded EASA Part CAMO certification, issued by the Irish Aviation Authority (IAA) under Approval No. IE.CAMO.117, as well as adding both the A320neo family and B737MAX family to its already comprehensive list of approvals, and restoring its DHC8 family approval too. In addition, the team
the team successfully retained the CAMO approvals from the Bailiwick of Guernsey Aviation Authority (2- REG), Bermudan Civil Aviation Authority (BCAA), and the Civil Aviation Authority of the Cayman Islands (CAACI) for respective registered aircraft. These CAMO approvals, now held by the CAMO team, enable it to supply a more comprehensive geographical reach. Acumen has continued to grow industry credibility by retaining valued clients through new and extended agreements, whilst simultaneously continuing to develop its customer network. In addition, Acumen has expanded and developed the capabilities of its Maintenance Management System (MMS) during this period, including the modules, Compliance Management (CMM), Personnel Management (PMM), and Document Management (DMM). Regulatory approval for this improved system was awarded in November 2023, and with the introduction of these additional modules, Acumen will be well-positioned to provide customers and other interested parties with a more efficient and tailored service. The addition of Safety Management Modules (SMM) is planned for 2024, so watch this space.
The Digital Transformation consulting services (DTS) has grown from strength to strength, offering innovative solutions to its customers both in terms of specialised products and independent domain-savvy services. Acumen’s digital transformation business has scripted significant success in its partnership with customers, delivering bespoke product development and maintenance support services. Through 2023, enhancements were made to Acumen’s SPARTA (comprehensive digital asset management) platform, and the team continued to further modernise using the latest technologies and third-party platform integrations. Acumen’s customer base continued to grow steadily and in line with the growing market confidence in the products and services being offered and it was delighted to welcome Dynam Aviation as a new addition to the SPARTA fold. Customers have continued to demonstrate their faith in Acumen’s solutions through the adoption of the DTS team’s digital platforms and digital success advisory (DSA) consultancy to manage their growing fleets and cover risk in a more efficient, comprehensive manner. Staying true to its aspirations, Acumen was able to launch a new product for Airworthiness Management catering to aircraft leasing, CAMO, and airline customers. The team also delivered comprehensive upgrades to its CommVerge (financial, simulated forecasting, and commercial exposure application) and fin-S (independent reliable commercial aircraft valuation application) solutions providing customers the ability to manage complex computations for their own fleet as well as those portfolios that they seek for transactions.
The Data Management (DM) team, also part of Acumen’s consultative service cluster, experienced growth in the number of assets managed, which increased to a total of nearly one thousand three hundred assets. This service, again part of the consultative group, encompasses the ongoing management of records for live assets; professional digitising and indexing, and commercial activities including, monthly utilisation review, MR invoice reporting, MR reconciliation, and forecasting end-of-lease adjustments. Included, within the large and varied number of data platforms the DM team can support, it continued to support AMOS, encompassing a comprehensive scope including stores, components, maintenance, and engineering.
Acumen’s Training team continued to provide educational services to the aviation community. Acumen enrolled more than two hundred and ten candidates within the period. Plans are advanced to commence its 2024 Executive Post Graduate Program (PGP) in Aircraft Leasing & Financing this month, in partnership with JAIN (Deemed-to-be-University), with over 60 students expected to enroll in two phases.
