THERE ARE HUNDREDS OF LESSORS AND OWNERS ALL ACTIVELY MARKETING THEIR AIRCRAFT, SO WITH SUCH A VAST CHOICE WHY USE US?
By using Air Trading Partners you will be dealing with a totally independent specialist that has no affiliation to any aircraft owners or lessors, and we are not selling or leasing our own aircraft.
We use our extensive resources to cover the market worldwide, identify aircraft that are most suited to your needs, evaluate proposals and provide them to you for consideration and review. With our experience both in airlines and aircraft trading we will also provide our own expert unbiased recommendations and guidance.
Be it a short term wet lease, long term dry lease or purchase, we pride ourselves on providing a highly personalised and professional service to all our customers.
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Or read on for our overview of the options
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AIRCRAFT LEASING - WHY LEASE?
Aircraft leasing takes away the initial high asset cost of purchasing an aircraft, allowing funds to be available for business development rather than being tied up in capital expenditure. This gives airlines the flexibility to expand (or reduce) their fleet in reaction to local or global markets at relatively short notice. In short, leasing provides a solution to get your aircraft into revenue service thereby maximising profits whilst keeping capital costs down.
Shorter term lease arrangements in particular also provide the opportunity to set up and evaluate new routes or take on specific contracts. Wet lease arrangements can be the solution to cover aircraft downtime due to maintenance or other operational issues that would otherwise leave an airline temporarily short of capacity. There are essentially two types of Lease; Wet Lease and Dry Lease. WHAT IS A DRY LEASE?
Dry Leasing is where the Aircraft Owner (the Lessor) leases the Aircraft to the Lessee typically for a fixed term with lease rentals paid by the Lessee to the Lessor on a monthly basis. It is the Lessees responsibility to crew and maintain the aircraft, although maintenance reserves are often charged by the Lessor in respect of major checks and overhaul. The Lessee will normally have operational and legal responsibility for the Aircraft although the Lessor may well have certain restrictions placed on the Lessee in terms of its commercial operation (such as restrictions on sub-leasing, countries that the aircraft can operate to etc). Assuming the Lessee is an Airline then the Lessee is responsible for getting the Aircraft on its Air Operators Certificate.
Within this category there is also Sale and Leaseback, whereby the Aircraft owner sells the Aircraft to a Lessor who then dry leases it back to the original owner. This is common practice and serves as a means to free up capital whilst at the same time seamlessly continuing operations. WHAT IS WET LEASING?
Wet Lease (ACMI - Aircraft, Crew, Maintenance and Insurance)In this arrangement the Aircraft operator (the Lessor) leases the Aircraft to the Lessee with flight deck crew, and if a passenger aircraft, subject to agreement with or without cabin crew. Typically lease rentals are paid on an hourly basis according to utilisation. The Lessor maintains full operational control, insures and maintains the aircraft at its own cost. The Aircraft remains on the Lessors Air Operators Certificate. These are typically short to mid-term arrangements to cover capacity shortfalls or the need to temporarily and quickly increase capacity.
AIRCRAFT PURCHASING
Despite the proven benefits of leasing, an outright purchase of an Aircraft can prove a cheaper long term solution. The obvious benefit is that no lease rentals have to be paid. This becomes more beneficial if the acquisition is long term. The aircraft can be sold at any time and whereas depreciation will no doubt have its impact, the aircraft owner at least gets some return on their investment. Many airlines also use the ownership of the asset to secure loans, effectively using the aircraft as collateral (which has been particularly beneficial since the Covid-19 outbreak). See also Sale and Leaseback.
FURTHER QUESTIONS?
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