Magnetic MRO’s team has extensive experience in technical support of aviation assets. Thus, in many cases, we are willing to include risk and rewards sharing initiatives in contracts with our partners. We understand that market and credit risks are already there for our financial partners to consider. Thus we are ready to minimize technical risks for asset owners and often turn remaining risks into our responsibility. We are open to discussing with any asset owner or investor how to help minimize the technical risks of their assets and contractually transfer the remaining risks to Magnetic MRO.
What is it?
Risk/Rewards Sharing Projects are customized each time for specific partner needs. In general, these are the types of engagements that Magnetic MRO is ready to discuss and create a project structure for our financial partners:
- Co-acquisition of aviation assets. Magnetic MRO buys aviation assets for part-out and short-term lease projects. We partner with other organizations in structuring high-value bids for fleets of assets or types of assets which are out of our scope. Together with partners we get into types of deals that none of us would approach individually.
- Project management for part-out projects. Magnetic MRO acts on the asset owner’s or investor’s behalf to acquire, part out, repair, and sell aviation assets. In a number of cases we are ready to commit to minimum ROI numbers for our financial partners.
- Fixed-return funds, backed by aviation assets. Our company is open to structuring fixed-return financial vehicles, backed by aviation assets, with long-term lease contracts for the assets from Magnetic MRO and our partner organizations.
- Avoidance of exceeding maintenance contracts for maintenance events covered by financial reserves. Magnetic MRO offers 3-way solutions, engaging operators and asset owners, capping maintenance costs at lower or equal to the financial reserves level. We shift the risk of exceeding expenses from the operator and asset owner to our organization.
Who is it for?
Magnetic MRO Risk/Rewards Sharing Projects cater to any type of asset owner or investor, i.e. leasing companies, banks, private investors or other financial organizations. They work best for new players in the aviation market, aiming at mid-life assets with premium returns and partner-shared risks.