WHEN WOULD YOU USE ACMI LEASING?
Airlines face operational disruption on a daily basis. Capacity requirements can change at a moment’s notice. Adapting accordingly is vital.
ACMI leasing can provide a flexible solution to immediate and strategic capacity requirements.
What Are The Benefits of ACMI?
The Advantages of ACMI to the Aircraft Lessee
The main advantage of wet leasing is flexibility. Subject to availability, lease operations can be started quickly – filling immediate capacity requirements.
Alternatively, a wet lease can be used over longer periods – providing supplemental seasonal availability. Wet leasing is ideal for testing new routes and markets, without having to invest heavily in new aircraft and crew first.
An operating or finance lease, also known as a dry lease, typically requires a minimum-term commitment. Purchasing an aircraft represents a significant capital investment that simply isn’t practical for some operators.
Wet leasing is completely flexible – use it when you need it. ACMI allows lessees to supplement their fleet capacity – without committing to an investment that may never produce a return.
The Advantages of ACMI to the Aircraft Lessor
ACMI allows the lessor to achieve greater fleet efficiency with lower risk. By leasing surplus capacity during low operating seasons, lessors can continue to earn without the associated commercial exposure of selling tickets. The income generated from ACMI provides a consistent revenue stream, as opposed to ticket sales’ variable revenue – and generally avoids compensation liability under EU Regulation 261/2004.
By taking advantage of counter-seasonal demand in other international markets, fleet capacity is used year-round – spreading the operating costs across a greater number of flight hours and reducing flight hour rates.
A damp lease is similar to a wet lease – but the lessee has sufficient cabin crew to operate the leased flights. Damp leasing is tailored to an airline’s specific operational requirements to maximise efficiency, by removing the costs of all (or part) of the cabin crew and HOTAC.