Aeromexico is a global airline with deep roots in Latin America. Boasting 87 years of rich history and unmatched expertise, it provides extensive connectivity spanning the Americas, the Caribbean, Europe, and Asia. Aeromexico consistently delivers an unparalleled travel experience, offering over 500 daily flights to 70 domestic and international destinations.
Aeromexico relies on Nakisa’s lease accounting software (aka Nakisa Lease Administration or NLA) to streamline its lease accounting and IFRS 16 compliance.
The challenge
Aeromexico manages an extensive and complex leasing portfolio. In 2019, the company needed to oversee more than 1,000 lease contracts covering various asset types, including its aircraft fleet, properties, and equipment. These leases often had to comply with the specific contractual regulations of the airports and countries where they were signed and operationalized. The industry norms required separate contracts for each aircraft, engine, and component, posing challenges in lease asset tracking and contract lifecycle management.
Before adopting Nakisa, Aeromexico relied on a dedicated team that spent hours crafting detailed Excel documents—an approach that was both time-consuming and prone to errors. "There were several challenges for the team. These included technical issues and the need to adapt and verify the extensive contract inventory, as aircraft leases have specific and complex requirements”, explained the Fleet Investments and Assets Manager.
Fleet Investments and Assets Manager at Aeromexico
To efficiently manage this vast portfolio and comply with the IFRS 16 standard, the company needed a stable and powerful solution. Aeromexico was searching for the right co-pilot—an effective solution capable of managing the complexity of its operations, global leases, and the diverse standards it had to meet. After evaluating several vendors, they chose Nakisa's lease accounting software.
The solution
In 2019, Aeromexico was looking for a solution that could accurately calculate the rents associated with their aircraft fleet and property lease contracts, all while ensuring compliance with the IFRS 16 standard. During this search, they received positive feedback from other airlines, including Delta, who had already adopted Nakisa Lease Administration. After having thorough discussions with the Nakisa team and conducting several successful demo tests, the Aeromexico procurement department opted for Nakisa’s solution. The entire process of implementing Nakisa's lease accounting software spanned just over four months.
Nakisa has extensive experience working with companies in the aviation sector. Notably, Delta and KLM have been our clients since the early phases of the new standards’ introduction. Our global lease management solution has been crafted based on client feedback and needs, ensuring that we understand the unique challenges of the aviation industry, particularly given its extensive and intricate lease agreements.
Project Manager at Aeromexico
The result
Soon after the implementation of Nakisa's lease accounting software, Aeromexico experienced improvements in operational efficiency, thanks to reliable calculations and enhanced compliance with accounting standards.
Among the benefits of Nakisa Lease Administration, the team highlighted the contract records, accurate calculations, compliance with lease accounting standards, ease of lease management and month-end accounting, and the timely generation of reports required by various regulations.
Human errors decreased, and the Aeromexico team found they were spending less time on certain tasks. With our software, the team could focus more on strategic work. They no longer need to handle as many manual tasks or create reports without the reliable data provided by Nakisa Lease Administration.
Want to simplify lease management and lease accounting for your large enterprise?
Nakisa's lease accounting software is a cloud-native, enterprise-grade solution that reduces the cost and complexity of managing global lease portfolios while ensuring full compliance with IFRS 16, ASC 842, and local GAAP standards. Interested in learning how we can help you tackle your lease administration, accounting, and compliance challenges? Let’s have a talk. Our solution experts will answer all your questions, share best practices for lease management and accounting, and demonstrate how Nakisa streamlines the entire business process for global enterprises like yours.
