For very Frequent air charter users, leasing is often a very useful and cost-effective option. It also offers many advantages when compared to the outright purchase an Aircraft. A leasing contract avoids having to part with a large sum of cash and thus cuts completely investment risk.
If you are a regular private flyer, the biggest advantage of leasing is that the aircraft will always be available for you at anytime you wish to fly. All you have to do is make a call and the aircraft will be ready.
If you are an Air Charter Operator the advantage of leasing an aircraft when compared to an outright purchase is that you can cancel the lease agreement at anytime without having the burden of looking for buyers for your aircraft should you ever wish to change the type of aircraft you are operating due to high or low demand.
Leasing Gives you the same access to an aircraft as an outright purchase without the high risk factor involved.
There are two ways to Lease an aircraft:
1. dry lease
This is where the owner of the aircraft gives full operational control of the aircraft without transferring the title deeds over to the lessee.
In order to qualify for this type of lease, you either need to be a pilot or the holder of an Air Operator Certificate (A.O.C). You will have full responsibility of the aircraft and thus need to appoint qualified flight crew, fuel the aircraft, send the aircraft for maintenance and take out an insurance policy for your operations etc.
The Owner of the Aircraft will Charge a Monthly fee for the rental plus an hourly rate for maintenance scheduled programs the aircraft manufacturer recommends.
This type of lease is usually requires a minimum of 36 months.
2.Wet lease
The Most common form of wet lease is known as an ACMI (Aircraft,Crew,Maintenance & Insurance) and does not require the aircraft owners to relinquish full operational control of the aircraft as he would during a Dry lease. The aircraft will keep its original registration and operate under the owner or operator’s Certification.
For Operations in foreign country the operator must be the holder of an FOC (Flight Operator’s Certificate) which will allow him/her to operate for a period of 6 months if the company he/she is flying for is still undergoing certification process, however once they acquire their AOC this period will be unlimited but shall not mean that the aircraft under ACMI will change Registrations or AOC, some countries i.e UAE only requires you to have an office at the intended airport of use.
Other forms of wet lease includes DAMP Lease which is pretty much the same as a wet lease without the flight attendant or Cabin Crew involved, the lessee will be responsible for the appointment of a qualified flight attendant or cabin crew.
This type of lease usually requires a minimum of 6 to 12 months.
At Kamo Aviation we have a team of specialists and dedicated members of staff who are experts in aircraft leasing, please send an email to admin@kamoaviation.com and one of our experts will contact you to find the aircraft you are looking for.