During the recovery process in Latin America, experts assure that ACMI (Aircraft. Crew. Maintenance. Insurance) or wet lease models are becoming a profitable alternative for airlines, as they allow the preservation and maximization of cash flow, as well as the optimization of resources.
It is important to mention that, after the impact caused by the Covid-19 pandemic, Latin America was one of the regions that suffered the greatest number of restrictions on air travel, forcing the closure of borders and other measures that had a significant impact on airlines.
Within this context, the most important airline groups in the region, LATAM, Avianca and Aeroméxico, had to restructure in order to safeguard the continuity of their businesses, while other companies sought other financing sources that would allow them to ensure their operations.
Under this panorama, the reactivation of the airline industry has taken place in the midst of uncertainty due to the underlying threats of the virus, such as new variants, and the possibility of new restrictions in different countries. This has forced airline operators to reconsider their models to face new challenges.
Avion Express experts affirm that this is an ideal time for the industry to operate under ACMI models, since airlines “will avoid shortage of resources to meet the needs of the industry, with a much more efficient financial model”.
Darius Kajokas, CEO of Avion Express, said “Fleet flexibility and the use of ACMI models generate multiple benefits for airlines by using the wet or dry lease model as a strategic Fleet Management tool for airlines, with substantial benefits in CAPEX and Financial Results as well as the flexibility of expansion and contraction in short seasons that this model offers”.
Likewise, according to the experts, this model allows the reduction of fleet, crew and aircraft costs on the ground during low seasons, benefiting airline operators.
Roberto Held, Business Development Head for the Americas at Avion Express, added “This is a key moment to redesign fleet operating models in the airline industry, especially in Latin America, mirroring existing models in Europe”.
