Definition of Leasing
In essence, an Aircraft is provided by a lessor (the owner of the Aircraft) to a lessee (someone who is leasing the Aircraft). The lessee is able to utilize the Aircraft any way they choose within the stipulations of the signed contract. The lessee pays the lessor an agreed monthly fee for the use the Aircraft. WAM & ZINGS AVIATION SERVICES acts as an intermediary in this process ensuring that the interests of both parties are taken into consideration. We provide a full wet lease turnkey solution from initial Aircraft choice to sourcing, contract negotiation and signing / operations management. In the interests of both parties, WAM & ZINGS also provides a full time onsite Operations Manager, ensuring smooth running of wet lease as per contractual agreement.
There are five different types of Leasing. These are Wet lease or ACMI, Damp lease, Dry lease, Operational lease and Financial lease.
Types of Leasing
Wet Lease or ACMI. A wet lease is a leasing arrangement whereby one “Airline” or aircraft operator (the lessor) provides an aircraft, complete crew / only cockpit crew, maintenance, and insurance (Hull and third party liability) to another airline or aircraft operator (the lessee), which pays by hours operated. The term ACMI is an acronym signifying Aircraft, Crew, Maintenance and Insurance. (The 4 main components of a wet lease) Wet Lease (ACMI) solutions are ideal for startup airlines, new route studies, seasonal or sudden demand peaks. Wet Lease Aircraft also fulfill the interim needs created by long term fleet expansion plans whilst maximizing market share in the immediate term.
Damp lease or AMI
AMI (Aircraft, Maintenance and Insurance) is similar to an ACMI or wet lease, but the crew is provided by the lessee. Damp lease includes the provision that that crew provided by the lessee undergo safety and Emergency Procedures (SEP) training for the particular type of leased Aircraft.
The lessor leases just the Aircraft to a lessee. This transaction excludes the provision of crew, maintenance and Insurance. The lessee has to acquire an Air Operators Certificate (AOC) and provide registration for the Aircraft.
An operating lease is a long term agreement that usually is compared to the short economic life of the Aircraft takes place within 2-7 years. This is beneficial for the lessee because they do not have to bear the cost.
A lessee has the option of purchasing the Aircraft they are leasing after the lease term has been completed. The price is decided upon through negotiations with the lessor and is usually over 75 percent of the Aircrafts usable life.