A customized lease contract
IBM Asset Recovery Solutions helped Air Canada Rouge offset the original iPad purchase with a buyback program. It then developed a lease agreement so that the airline could procure 1,540 new iPads quickly, with a 3-year term and a price that will remain fixed for the duration of the contract.
“IBM bought up all of our old devices and provided us with new devices within three weeks of getting the contract signed. Not many companies can move that quickly,” notes Vidgen.
Air Canada Rouge’s business has grown, with new airplanes and new destinations, since the company secured the new iPad Air 2 devices, and the IBM Global Financing team continues to support that growth with speed and flexibility. Today, the airline is leasing 2,400 iPads with help from IBM, and Vidgen expects that number to grow again soon.
“For large enterprises, growth can sometimes happen quite slowly. But with this relationship and contract infrastructure, we are able to expand our program with ease,” says Vidgen.
Keeping expenses predictable
Air Canada Rouge chose to lease its iPads on a 3-year term that also shifts the iPads from a capital expense, which can depreciate quickly, to an operational expense, which allows for easier budgeting and creates a clear timeline for future upgrades.
“With predictable and stable cash outflows, we have all of the information we need to plan for our next technology refresh,” says Vidgen.