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 from the Americas and the Caribbean all the way to Europe and Asia. Aeromexico consistently delivers an unparalleled travel experience, offering over 500 daily flights to 70 domestic and international destinations.
Aeromexico has an extensive and complex leasing portfolio. In 2019, the company needed to manage more than 1,000 lease contracts with various asset types like aircraft fleet, properties, and equipment. These leases frequently had to align with the specific contractual regulations of the airports and countries where they were signed and operationalized. The industry norm required individual contracts for each aircraft, engine, and component, which posed challenges in lease asset tracking and contract lifecycle management.
Before adopting Nakisa, Aeromexico relied on a dedicated team who poured hours into crafting detailed Excel documents. This approach was not only time-consuming but also prone to errors.
Automated lease management and IFRS 16 compliance benefit Aeromexico, providing accuracy, lease portfolio visibility, and time savings for the team.
“With Delta, our main foreign shareholder, it was necessary to comply with monthly financial information, by determining and segregating the effects of the application of the IFRS 16 standard. Modeling the terms and conditions for aircraft leasing is a challenge, since it involves multiple variables. For this, we required a program with greater capabilities, since an Excel file was not enough for our needs”
To efficiently manage this vast portfolio and comply with the IFRS 16 standard, the company needed stable and powerful software. Aeromexico was looking for a good co-pilot: an effective solution up to the complexity of its operations, its global leases, and the variety of standards to be met.
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 solutions.
Nakisa has extensive experience working with companies in the aviation sector. Notably, Delta and KLM have been our clients from the early phases of the new standards’ introduction. Our global lease management solution has been crafted based on client feedback and needs. This engagement ensures that we understand the unique challenges of the aviation industry, particularly given its extensive and intricate lease agreements.
The entire process of implementing the Nakisa Lease Administration software spanned just over four months.
“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.
Interested in learning more about Nakisa Lease Administration software and how we can assist you in tackling your lease administration, accounting, and compliance challenges? Let’s have a talk. Our solution experts will answer all your questions, share the best lease management practices, and demonstrate how Nakisa helps streamline the end-to-end business process.
Throughout the journey, Aeromexico had unwavering support from Nakisa’s technical team. “They were with us from the very beginning, always exploring solutions inherent to the system,” comments the Project Manager.
Soon after the Nakisa Lease Administration implementation, Aeromexico saw the first improvements in operational efficiency thanks to reliable calculations and enhanced compliance with accounting standards.
Among the benefits of the Nakisa Lease Administration software, the team highlighted the contract records, accurate calculations, compliance with lease accounting standards, easy lease management and accounting at month-end, and the timely generation of reports required by different regulations.
Human errors dropped, and the Aeromexico team found they were spending less time on certain tasks. With our software, the team could focus more on strategic work. Now, they don’t need to handle as many manual tasks or create reports without using reliable data from Nakisa Lease Administration.