One of the strategic decisions that airlines have had to make is the acquisition and financing of aircraft. This decision is crucial to the profitability of an airline, and as such, the airline business model is adapting to the needs of the market
HelloJets is an aircraft leasing company that offers top-quality services such as ACMI leases (wet leases), aircraft rental services, and customized leasing options to meet the needs of its customers. With vast airline knowledge and adaptive ideas, HelloJets serves the entire package and has become a trusted partner for businesses and individuals seeking customized aircraft leasing solutions.
We made our debut in June 2021 and have been active since the start of 2022. Our team of nearly 200 professionals is dedicated to working closely with our clients on all aspects of aircraft leasing and management, including operational aircraft maintenance, crew management, and insurance.
Let’s find out more together about this part of the aviation industry!
We all know that the current times are uncertain and have affected many aspects of our lives, including the business world. The instability caused by factors such as climate change, pandemics, wars, and military conflicts has made it even more challenging for businesses to navigate and plan. Airlines have been hit particularly hard by these factors and have had to make some tough decisions to survive.
One of the strategic decisions that airlines have had to make is the acquisition and financing of aircraft. This decision is crucial to the profitability of an airline, and as such, the airline business model is adapting to the needs of the market. Did you know that aircraft leasing has become an increasingly popular option for airlines? In fact, the share of leased aircraft in the world fleet is now 52%, of which 44% are operationally leased and 8% are wet or dry leased.
But what do these terms mean? Let's break them down together!
Operational leasing also known as dry leasing, is a contract between an aircraft owner or manager and an operator. The operator leases the aircraft from the owner for a defined lease period, usually between 6 and 12 years, and returns the aircraft to the owner at the end of the lease period. The lessee pays a monthly rent to the aircraft owner and has operational responsibility for and control over the aircraft.
Financial leasing, on the other hand, is a lease agreement in which the lessee has an option to purchase the aircraft at the end of the lease period. In a financial lease, the lessee is responsible for the maintenance and insurance of the aircraft, as well as any taxes or fees associated with it.
Wet leasing is a type of leasing in which an airline leases an aircraft along with its crew, maintenance, and insurance. The lessor provides a complete aircraft package, including crew, maintenance, and insurance, to the lessee. This type of leasing is useful for medium-term contracts, seasonal fluctuations in demand, filling a gap in the fleet, or even to start an airline business.
Dry leasing is a type of leasing in which an airline leases an aircraft without any crew, maintenance, or insurance. In a dry lease, the lessee is responsible for providing these services. This type of leasing is useful for airlines that have their own maintenance and crew and only need the aircraft.
In these uncertain times, it's essential for airlines to make the best decisions for their business. Acquiring and financing aircraft is a crucial decision, and understanding the different types of leasing is essential. Ultimately, the goal is to ensure the profitability and sustainability of the airline.