Think ACMI might work for you but unsure exactly what’s involved? Read on for our comprehensive guide to this flexible leasing solution.

What is ACMI?

ACMI stands for Aircraft, Crew, Maintenance and Insurance. There are two main types of ACMI lease: wet leasing, when a supplying airline (the lessor) provides all four of these elements to a customer airline (the lessee); and damp leasing, when the lessee provides their own cabin crew. In both cases, the lessee pays by the number of block hours operated and arranges its own ground services such as fuel, handling and catering. ACMI leases generally last up to 12-18 months and are a cost-effective alternative to buying a new aircraft when faced with issues such as:

• Seasonal demand
• Testing new routes
• Maintenance delays
• Late delivery of new aircraft
• Crew shortages
• AOG

Why choose ACMI?

ACMI leasing offers advantages for both the lessee and lessor. The lessee benefits from extra seasonal capacity without investing in the longer-term commitment of dry leasing or purchasing extra aircraft. An ACMI lease also gives them the flexibility to choose the aircraft type, operation period and route that best suit their needs.

On the flip side, the lessor can capitalise on counter-seasonal demand from other regions, allowing them to optimise their fleet and generate year-round revenue without worrying about incremental costs like fluctuating fuel and currency, ground handling charges and passenger delay compensation liability.

Types of ACMI Lease

• Short-term: Unforeseen emergencies like grounded aircraft, crew sickness, bad weather and strike action can disrupt an airline’s schedule for days, so operators need to act quickly to minimise delays. A short-term ACMI lease allows airlines to outsource the affected schedule whilst maintaining continuous service across the rest of their operation.

• Long-term: Longer-standing leases provide prolonged use of an aircraft without the financial commitment and overheads of a dry or operational lease. Long-term leases are an ideal solution for testing new routes and markets, meeting seasonal demand, and covering service disruption due to planned maintenance, lease deferrals, aircraft deliveries and crew training.

• Cargo: In these unprecedented times, cargo leasing allows airlines to meet increased demand for freight capacity without dry leasing or buying additional aircraft, similar to that in passenger aircraft leasing. Contracts can be arranged on a monthly or annual basis as needed and our team of leasing experts can source a wide range of specialist cargo aircraft as well as auxiliary freighters.

Alternatives to ACMI

• Dry Leases: Involving only an aircraft (without crew, maintenance or insurance), dry leases are a cost-effective alternative to ACMI longer term. The lessee adds the aircraft to its air operator’s certificate (AOC) and provides aircraft registration, but provides its own crew. Dry lease agreements typically last at least two years, depending on factors like depreciation, maintenance and insurance.

• Hybrid Leases: Also known as CMI (Crew, Maintenance and Insurance), hybrid leases involve the client’s aircraft being dry leased to an operator, who then wet leases it back to the client with a crew, maintenance and insurance. Hybrid leases are a great solution for airlines that have sufficient aircraft capacity, but need to outsource operational support due to factors like crew shortages and strike action.