ACMI

Characteristics of an ACMI provider

Aircraft

Crew

Maintenance

Insurance

Every wide body aircraft wet lessor/successful ACMI operation has the following characteristics:

PProvision of “airport to airport” transportation services
ØDedicated aircraft for each customer
ØACMI contracts for durations of 6 months - 5 years
ØCustomer guarantees of revenues of between 12-14 hours of flying time per day.
ØFixed rates per hour (with some escalation clauses)
ØTake or pay contracts
ØContract rates typically 30-45% below customer’s own cost.
ØContracting with investment grade credits as customers and selected new clients.
ØAvoiding the airline industry’s four most volatile risks:
- a)FUEL (Customer pay for fuel costs)
  b)YIELD (Fixed rate 6 month - 5 year contracts with blue chip and selected customers)
  
  c)LOAD FACTOR (Customer is responsible for filling aircraft)
  
  d)CURRENCY (All contracts priced in US Dollars)