WET LEASING (ACMI)
In today’s environment of regulatory restrictions and capital requirements it can be difficult for airlines to compete in new markets and increase their market share. Overcoming these hurdles can often be achieved by wet leasing aircraft to operate specific routes, which can be deemed profitable, but unattainable without assistance. By doing so airlines (lessees) can focus its core resources on commercial activities, while the lessor brings its turn-key solution, namely an aircraft with crew, maintenance and insurance ready to go. This saves both operational and financial resources, which can alleviate strain on the airline, equivalent to growing pain. Through the years we have helped put together a multitude of wet lease agreements for our clients and our experience undisputedly speaks volumes.
When airlines seek additional aircraft to serve in their fleet under wet lease conditions, it can be difficult to find placement for crew resources that are already on payroll. Under these circumstances, a Damp Lease can be the ideal solution for all parties, where the wet lessor brings its ACMI service to the table, however, the lessee utilizes its own cabin crew (as an example), trained under the lessor’s guidance and regulations. In some cases this can also extend to the cockpit crew members, where they can in part be provided by the lessee. In some scenarios this can prove beneficial to the lessor seeing as local staff may be better accustomed to the operational environment, which ultimately delivers a better service to the passengers.
LEASING VARIATIONS (AMI, CMI, MI)(ACMI)
When airlines, operators, and aircraft owners find themselves in a position where they lack the resources needed to put their assets to work and generate revenue, leasing varieties may be the solution. Linking with charter and ACMI operators that have an AOC and are in a position to facilitate the operational part required for air transport services, is one of our specialties. Our team has the experience to work with such scenarios and will invest their time in figuring out with our clients what arrangement may be the best one to apply. Dividing up the A-C-M-I concept and puzzling it together in various ways can often be the perfect solution.
THE BENEFITS OF ACMI SERVICE
The benefits of wet leasing can be various. Airlines may find themselves in a situation where they are interested in trying out a new route to see if it matches expectations. Adding additional aircraft and training crew members can take time and be costly thus not making such route test viable within the airlines own fleet. In some cases, the airline may lack the proper traffic rights in order to serve certain markets, in which case the wet lessor may be in a position to provide them under its own AOC (Air Operator Certificate). Wet leasing has also been viewed as a form of capital lending whereas the enormous cash outlay associated with fleet renewal and additions, including crew training and human resources, can often be the barrier to embarking on new markets and further expansion in existing ones. Knowing these elements and what effect they can have on the business model is essential. At Avico USA, we pride ourselves in having the skillset to act as a valued partner in wet leasing transactions, ensuring that our clients receive the best service available in the industry. We are not just another service provider, but rather an extension to our client’s team of professionals.