Cost-Effective AD Compliance: Why Leading CAMOs Think Commercially

In today’s leasing environment, cost efficiency and compliance are inseparable. The top CAMO organizations—like Avtrac—understand that technical airworthiness isn’t just a regulatory requirement; it’s a commercial strategy.

For lessors and operators alike, each airworthiness directive (AD) represents not only a safety obligation but also a financial decision that can influence asset value, residual position, and market readiness. The upcoming Fuel Tank Flammability Reduction (FTFR) compliance mandate is a clear example.

Under various FAA airworthiness directives, operators of Boeing & Airbus aircraft must implement an approved Flammability Reduction Means by 2026. While OEM nitrogen-generating systems have traditionally dominated this space, Jetaire’s INVICTA system—approved by the FAA and accepted by multiple regulatory authorities—offers a certified, cost-effective alternative that can significantly reduce modification expenditure and downtime.

AD 2020-18-13 – Boeing 737 aircraft & corresponding Jetaire STC: ST03450NY

AD 2019-24-01 – Airbus A320 & 330 family aircraft & corresponding Jetaire STC: ST03834NY

AD 2020-18-16 – Boeing 767 aircraft & corresponding Jetaire STC: ST04405AT

AD 2019-24-01 - Airbus A330-200 aircraft & corresponding Jetaire STC: ST04590AT

AD 2016-07-07 – Boeing 757 aircraft & corresponding Jetaire STC: ST04415AT

At Avtrac, our CAMO and asset management teams pay close attention to such solutions such as this one and various others. We continuously evaluate alternative paths to compliance that maintain safety and regulatory integrity while reducing cost exposure for our clients. This proactive awareness ensures lessors achieve the best possible outcomes when managing fleets through AD compliance programs, transitions, and redeliveries.

Recent developments underscore the importance of this approach. Following the Spirit Airlines bankruptcy, 87 aircraft are expected to enter the secondary market in the months ahead. As these assets return to lessors, competition will intensify—and legacy configurations or outdated modifications will weigh on marketability and residual value of other aircraft that will ultimately be replaced by this newly re-entering feedstock. Many of of the aircraft coming out of Spirit will be absorbed by operators seeking to replace even older technology.

By aligning technical compliance with commercial foresight, Avtrac helps ensure that every dollar spent on modification or AD compliance delivers measurable value to the aircraft’s long-term lifecycle.

In short:

✔️ CAMO strategy must be commercially intelligent, not just technically compliant.

✔️ Evaluating alternatives like Jetaire’s INVICTA safeguards cost efficiency and operational flexibility.

✔️ As aircraft re-enter the market, cost-effective compliance enhances asset competitiveness.

Avtrac’s experience managing more than 600 aircraft transitions and our multi-jurisdictional EASA, UK, Cayman, and 2-REG CAMO approvals position us as the trusted partner for lessors seeking both compliance and commercial advantage