Brinding data-driven value to aircraft leasing
TEKaviation, a new cloud-based solution from TEKenable, not only allows aircraft lessors to leapfrog legacy technology and drive new opportunities using data and artificial intelligence.
The aircraft leasing industry, a cornerstone of the aviation sector, has for decades been characterised by the need to manage complex, high-value assets, including both engines and the aircraft themselves, as well as manage a web of intricate financial arrangements and an intricate IT landscape comprised of on-premise function-focusses systems.
Traditionally, operations have been managed using these inflexible legacy systems and a variety of manual processes. While these systems have served their purpose, the industry is now at a crossroads: as digital transformation gathers pace across other sectors from finance to manufacturing, aircraft lessors are faced with the stark reality that outdated technology is hindering growth and profitability.
The weight of outdated technology
The reality today is that, despite aerospace itself being an inherently technologically forward-looking sector and the ongoing digital transformation occurring across industry sectors, aircraft lessors have been held back, left to grapple with a myriad of challenges stemming from their reliance on what is now outdated technology.
The crucial problem with existing solutions is that they hinge on on-premise legacy systems or single point systems that operate in silos, making data integration and analysis a formidable task. As a result, data fragmentation impedes strategic decision-making, as insights are obscured by disparate information – something that is doubly problematic because aircraft leasing is, fundamentally, a matter of finance and asset management and is therefore predicated on accurate use of data, including not only internal data but also macroeconomic information from fuel prices to interest rates.
Moreover, these systems are notoriously difficult to maintain, requiring substantial IT resources and incurring high operational costs.
A common pain point is inefficiency in lease management. Manual processes for lease documentation, contract management, and rent calculations are time-consuming and error-prone, thus slowing down operations and also increasing the risk of financial discrepancies. Additionally, typical leasing systems are infrequently updated and often lack the flexibility to adapt to evolving lease structures and regulatory requirements, hindering innovation and growth.
The financial implications of outdated technology
The financial impact of relying on outdated technology cannot be overstated. Legacy on-premise systems often require significant investment not only in hardware and infrastructure, but also in ongoing maintenance and upgrades, diverting funds that would be better spent on innovation and growth.
Additionally, the inefficiencies inherent in such systems can lead to increased operational costs, reduced profitability, and, ultimately, a diminished competitive edge.
For example, manual processes for lease documentation and contract management are not only time-consuming but also error-prone, potentially resulting in financial discrepancies. In addition, security and patch management for on-premise systems can hinder lessors’ ability to produce its financial statements in a timely fashion. In a highly competitive industry, such inefficiencies obviously erode profit margins and slow growth.
The human factor: employee morale and productivity
Finance is far from the only areas where technological drag has a negative impact. It also has an unwelcome impact on people, which is particularly important as leasing employs the best and the brightest executives and graduates making it imperative for human resources to deliver value to the organisation rather than leaving skilled staff to perform repetitive labour.
Indeed, across industries, reliance on outdated technology has a significant impact on employee morale and productivity. This is no less true in leasing, where inflexible systems have traditionally been augmented with manual processes. However, manual processes and their inherent inefficiency lead to frustration and burnout among employees, reducing overall productivity and job satisfaction.
In contrast, modern, user-friendly systems can streamline workflows, reduce the burden of administrative tasks, and empower employees to focus on higher-value activities.
Put simply, aviation leasing solutions should meet the needs of their users, not force their users to work how the system is designed. Therefore, by investing in modern technology, aircraft lessors can create a more positive and productive work environment. This not only enhances employee satisfaction but also improves overall operational efficiency and effectiveness.
The dawn of a new era: Cloud-based, AI-enabled solutions
The truth is that while lessors struggle with outdated technology there is an alternative: moving to a cloud-based solution, such as TEKaviation, that reduces reliance on legacy infrastructure, does away with data siloing, and introduces modern data analytics, machine learning (ML) and artificial intelligence (AI) to augment decision-making.
This is true digital transformation, something the aviation industry as a whole is undergoing, meaning aircraft lessors must embrace new technologies to remain competitive. A cloud-based, AI-enabled solution offers a transformative approach to lease management, risk mitigation, and operational efficiency.
Key to this is a centralised repository for all lease-related data, enabling real-time visibility and analysis. The resulting enhanced data accessibility empowers decision-makers with actionable insights to optimise lease portfolios and identify new revenue opportunities.
Additionally, moving to a cloud-based solution improves scalability and flexibility, allowing lessors to adapt to changing market conditions and regulatory requirements with ease.
AI and predictive analytics: Revolutionising maintenance and risk management
Following the explosion of interest in AI after the release of OpenAI’s ChatGPT and Microsoft Copilot, it will come as no surprise to read that AI can revolutionise various aspects of lessors’ information systems and how data is managed.
However, while generative AI has a role to play, particularly in interacting with the user, AI runs deeper than chatbots. Indeed, while AI-powered chatbots can provide instant support and assistance, real-time data analytics can help lessors anticipate and address customer needs more effectively.
In addition, AI-powered fraud detection systems can identify anomalies and protect against material financial errors. Furthermore, AI can enhance lease origination by automating routine tasks, improving efficiency, and accelerating deal closures.
However, the ability to put AI to work on data is not the only upside: by leveraging advanced technologies, lessors can improve customer service by providing real-time information and self-service portals. This enhances customer satisfaction and strengthens relationships. Additionally, automation of routine tasks frees up employees to focus on higher-value activities, such as strategic planning and business development.
Conclusion: Flying higher
Make no mistake: the transition to modern technology is not without its challenges, but the potential benefits are immense: by overcoming the limitations of outdated systems, aircraft lessors can unlock new opportunities, improve operational efficiency, improve risk management processes and enhance profitability.
There is also the risk of standing still, as ageing technology may already holds lessors back today, but this will only get worse as time passes.
A cloud-based, AI-enabled platform empowers lessors to make data-driven decisions, optimise lease portfolios, and mitigate risks. It enables them to adapt to changing market dynamics and regulatory landscapes with agility. Moreover, it enhances customer satisfaction and fosters innovation.
Embracing new technology is not just about staying competitive; it is about transforming the business. By investing in modern solutions, aircraft lessors can position themselves for long-term success in an increasingly complex and dynamic industry.
Ready?
To unlock the transformative potential of data and AI for aircraft leasing? TEKenable can help. We offer TEKaviation, a comprehensive suite of solutions tailored to lessors’ specific needs. Contact us today to schedule a consultation and explore how we can empower you to achieve digital transformation success.