The passenger ACMI market is led by Avia Solutions Group with ~8% of the total block hour market share
The passenger ACMI market is led by Avia Solutions Group with ~8% of the total block hour market share
Our airlines operate a total of 220 aircraft, which contributes to approximately 36,800 seats to the global passenger aviation market
Our airline companies hold 11 Air Operator Certificates (AOCs), with a further 4 in development
Our AOCs span 6 continents. Seasonal ACMI capacity is only sustainable if a lessors’ AOCs operate across 6 of the 7 world continents (excluding Antarctica)
Our airlines carry 35m passengers every year
Our airlines' aircraft can be fully branded with an operator's livery for the duration of the ACMI contract
With a diversified customer portfolio, our top 5 customers share just 48% of our fleet’s total block hours
Our ACMI services are complimented by our supporting network infrastructure, including MRO, crew training, and ground handling
An ACMI carrier in any country or continent must be well-established and operate all year round, primarily serving the local market, so that it can effectively adjust capacity during peak and non-peak seasons. Our airlines, distributed across 6 continents, fully fulfill these criteria. Discover our carriers below.
ACMI is a strategic profit-accelerating aircraft leasing practice that allows scheduled airlines to manage their fleets more efficiently, adjust to market fluctuations, and optimize operational costs. By integrating ACMI as part of an airline’s long-term strategy, both aircraft capacity and income can be maximized.
Much like birds migrating to new environments for the winter seasons, ACMI airlines take advantage of seasonality. This is because they have the freedom and ability to redeploy their aircraft to support client operations around the world when peak travel periods are in effect. This often coincides with summer holiday periods and school semesters, which start and end in a different month around the world.
From an airline’s operational perspective, ACMI wet leasing ensures that aircraft utilization is higher all year round for lessors, while lessees benefit from lower operational risks, leasing assets as opposed to purchasing them outright.
Adjusting seasonal ACMI capacity, expanding in peak seasons and reducing in non-peak seasons, is financially viable if it represents 6% -10% of the total scheduled airline fleet, with a minimum of 5 aircraft of the same type and configuration. For medium-sized airlines, this typically requires at least 10+ aircraft on an ACMI basis.
The ACMI leasing market has experienced significant growth over the past five years, driven by several factors that coincide with the commercial aviation’s recovery from the global COVID-19 pandemic.
2019 levels of passenger traffic have returned, driven by supply
Major EU legacy carriers quote 6% of seasonal capacity is now provided by 3rd parties
26,000 commercial aircraft globally, 1,560 as ACMI ops
Restrictions led by aviation authorities and unions allow cross-border investment
Supply chain disruptions and production backlogs in aircraft manufacturing, combined with the global shortage of qualified pilots, has compounded operational challenges for airlines. This has prompted further ACMI partnerships to allow airlines to meet service demand, without the need to wait for new aircraft or pilots.
Commercial airlines’ main business case for ACMI utilization is to provide additional capacity during peak seasons. This is particularly prominent in Europe where there is a 31% difference in passenger numbers between the low and high season, resulting in an additional 153 million passengers in the summer period.
EuropeM Passegers | AsiaM Passegers | North AmericaM Passegers | South AmericaM Passegers | Middle East & AfricaM Passegers | GlobalM Passegers | |
---|---|---|---|---|---|---|
Europe's low season Nov-Apr | 496 | 704 | 529 | 170 | 234 | 2130 |
Europe's high season May-Oct | 647 | 731 | 592 | 163; | 241 | 2375 |
Difference in passengers between Europe's low and high season | +153 | 27 (-25) | 63 (-15) | -7 (-50) | 7 (-20) | 245 |
% share of the gap, compared to high season | 31% | 4% | 12% | -4% | 3% | 11,5% |
Adjustment after sales to counter season areas | 31% | 0% | 9% | -34% | -5% |
ACMI leasing is a rental agreement where one airline leases both an aircraft and the necessary crew, maintenance, and insurance from another airline or leasing company. It's a flexible arrangement that helps airlines quickly meet short-term demand without committing to long-term investments.
Aircraft lessors are the party that owns the aircraft and provides the lessee with the aircraft, crew, maintenance services, and insurance under the ACMI contract. The lessor is responsible for maintaining the aircraft, providing trained crew, and covering insurance costs during the lease period.
Aircraft lessees are the airline or operator that leases the aircraft from the lessor. The lessee typically handles such operational aspects as fuel, airport fees, and flight scheduling. The lessee pays the lessor for the use of the aircraft and services and benefits from increased operational capacity without the financial and logistical burden of owning and maintaining an aircraft.
ACMI airlines can provide both immediate and longer-term strategic aircraft solutions for a range of business use cases.
ACMI can provide cover for crew and aircraft deficits alike. An airline may experience unexpected staff shortages or have aircraft on ground (AOG) due to maintenance driven outages, or in case of OEM delivery delays.
Additional business
ACMI allows airlines to experiment with new aircraft types (such as long-range or wide-body jets) to test new routes or market segments before committing to a full purchase or long-term lease.
Demand volatility
Airlines looking to enter new markets or test new routes can use ACMI services to trial such segments without the capital outlay of purchasing aircraft outright.
ACMI leasing provides long-term cost benefits by allowing airlines to scale capacity without the capital expenditure and financial risk of purchasing or maintaining additional aircraft.
Demand volatility
ACMI reduces the operational burden on airlines by including crew, maintenance, and insurance, while efficiently meeting fluctuating demand that comes with global travel seasonality.
ACMI (Aircraft, Crew, Maintenance, and Insurance) leasing can increase an airline's capacity in several ways. By providing additional aircraft and operational support, ACMI leasing enables airlines to respond quickly to market demands and efficiently manage their capacity, thereby improving their overall operational flexibility and performance.
§ Immediate Access to Aircraft: ACMI leasing allows an airline to quickly access additional aircraft without the long lead times associated with purchasing or leasing new planes. This rapid availability enables airlines to address sudden increases in demand or to cover unexpected maintenance issues within their own fleet.
§ Flexible Capacity Management: With ACMI leasing, airlines can adjust their capacity according to fluctuating demand. They can lease additional aircraft during peak seasons or for specific routes without committing to a permanent increase in their own fleet size.
§ Operational Expansion: For airlines seeking to test new routes or expand into new markets, ACMI leasing provides a way to do so without the immediate financial commitment and risks associated with purchasing new aircraft. This enables airlines to explore new opportunities while managing costs and risks effectively.
§ Operational Continuity: ACMI leasing ensures operational continuity during scheduled maintenance of an airline's own fleet. By temporarily leasing aircraft, an airline can maintain its regular flight schedules and services without disruptions, thereby ensuring customer satisfaction and minimizing revenue loss.
The main differences between ACMI leasing and other types of aircraft leasing lie in the level of services provided and the specific terms of the lease.
§ Dry Lease: With a dry lease, the lessor provides the aircraft without any additional services, such as crew, maintenance, or insurance. The lessee is responsible for all aspects of the operation, including crewing, maintenance, and insurance.
§ Wet Lease: A wet lease is similar to an ACMI lease, but it typically excludes the maintenance component. In a wet lease, the lessor provides both the aircraft and the crew, while the lessee is responsible for fuel and other operating costs.
§ ACMI Lease: ACMI leasing includes the provision of Aircraft, Crew, Maintenance, and Insurance. The lessor provides the complete package, which includes the aircraft along with a complete crew, maintenance services, and insurance. This is especially useful for airlines looking for a comprehensive, short-term solution without the burden of managing various aspects of the operation.