JETAFRIQUE SERVICES

JetAfrique comprises four separate, but complimentary business units:

  • Aircraft Remarketing and Sales
  • Aircraft Leasing
  • Aircraft Management 
  • Airline Start-Up and Airport Development
JetAfrique Aircraft Leasing
Aircraft Leasing is responsible for the acquisition and placement of aircraft on lease.
We servise aircraft operators in developed and emerging markets. We have aircraft placed across Africa, Asia and the Middle East.


JetAfrique Aircraft Management

Aircraft Management is responsible for offering comprehensive third party aircraft management services on all aspects of aircraft ownership.
 
 
AIRCRAFT LEASING

JetAfrique acquires and leases regional aircraft and other aviation assets.
  • Where the regional airline lessee does not have the capacity to operate the aircraft independently, the aircraft is leased on a branded wet lease basis through a JetAfrique approved, ACMI operator.
  • JetAfrique's strategy is to grow the portfolio through accretive acquisitions of aircraft, while paying decent returns to its shareholders
Should you have a requirement to lease regional aircraft, please contact JAG through the link below.
 
 

 AIRLINE START-UP


Planning to Start a New Airline?
The two main reasons why start-up airlines fail, and perhaps the ones that you have the greatest influence over, are your airline management team and capitalisation. These two elements are essential ingredients to get right if your airline is to succeed. If either item is lacking you are destined for failure!
 
If you would like more information please review our Aircraft purchase or lease page then simply send us an email with your requirements and we will render advice appropriate to your particular situation. 
 
The consulting services we offer include all aspects of airline and operational set-up. Including but not limited to:
  • Route planning
  • Selection or advice on the most appropriate aircraft
  • Assistance and management of the aircraft lease or purchase process
  • Full tun-key provision of flight crew
  • Crew training and re-currency training
  • Ground crew and operations training
  • Full turn-key maintenance planning and management of the full maintenance function
  • Base maintenance set-up and advice
  • Liaising with Civil Aviation Authority in the country of operation
  • Advice on Civil Aviation Regulations and I.C.A.O. requirements
  • Management of the process to seek and obtain I.O.S.A clearance and approval.
  • Advice on code-sharing opportunities and appropriate code-share partners
  • Professional Management consulting services
  • Advice on appropriate I.T. services in the form of the most appropriate TRS (ticket reservation system).
  • Management of Ground Handling operations.

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Airport Development and Consulting

 In addition to our Airline Consulting, we offer input into Airport Development as well as recommendations and installation of an approriate A.O.D.B system (Airport Operating Database management System). This professional input is rendered mindful of all the prevailing factors which have a bearing upon the airport, including but not limited to:

  • Current physical and logistical status of the airport development
  • Current I.T. status
  • Number of domestic and international carriers that frequent the airport.
  • LCN status of the runway
  • Available Government funding
 
AIRCRAFT: PURCHASE or LEASE? 

Many factors influence the decision process but basically these can be broken down into three main areas:
  • Aircraft Usage
  • Organisational Structure
  • Financial Status
 
Aircraft Usage
Seasonal variations in aircraft capacity (such as summer vs. winter or holidays like Hajj etc.) can obviously cause issues, either not enough  aircraft in summer or too many planes in winter! One way to overcome the shortfall in aircraft during the peak seasons is to utilize an ACMI lease agreement for the extra aircraft. If the airline has too many aircraft, either owned or dry leased, then they can offer their surplus aircraft in their low season to another airline that is in peak season. 

Evaluating new routes via an ACMI lease allows an airline to test these routes over a short period of time as to whether it is viable or not. Part of the evaluation will be the sizing and economics of the aircraft. After the lease the aircraft can be returned to the lessor, lease extended/converted to dry, or an alternative aircraft can be acquired via other options.

As described in our Aircraft Leasing Definitions page, lease agreements of less than two years are usually conducted under an ACMI agreement. Over two years then it is more financially beneficial to either enter a dry lease agreement or purchase the aircraft.

Organisational Structure

If your organisation does not have, or access to, or does not intend to obtain an AOC then you cannot lease an aircraft for a commercial operation. In this situation flights can only be operated under a public charter contract. A third party airline or aircraft operator would perform the flights under their AOC and be responsible for all aspects of the flight. Tour operators and small start-up airlines may well use this option rather than going through the certification process before start-up. 


Financial Status.

A major decision an aircraft Lessor makes when placing an aircraft on lease is to evaluate the risk factor! The two main types of leases (ACMI and Dry lease) have different risk factors. The owner/operator of an ACMI agreement retains control of the aircraft, and therefore, has more security over their asset than does the Lessor in a dry lease agreement as the Lessee has control of the aircraft throughout the dry lease period.

The Lessor of a dry lease agreement generally requires that the Lessee has a solid operating history, 3 years of positive financial statements and the sufficient funding, therefore, it can be difficult for an airline to lease an airplane without these requirements. In order for one to do so, the potential Lessee will need to provide the Lessor with a solid business plan, profile of the investors and senior management, and have clear proof of available funding. Please note that some Lessors may have slightly different requirements.

Cost of purchasing an aircraft can be restrictive to an airline that wants to start or expand it's fleet. Leasing allows the cost to be spread across several years. At the lease term the Lessee can either renew the lease or returned the aircraft to the lessor, to be replaced with more modern aircraft.
 
 Leasing an Aircraft

What is a Lease?

  • Contract between two parties – lessor and lessee
  • Allow lessee to use equipment owned by lessor for a period of time for a rental payment

Characteristics of Operating Lease

  • Lessor acquires the aircraft from a manufacturer
    • Lessor pays the advance payments
    • Lessor funds or arranges financing for the aircraft at delivery
  • Airline leases the aircraft from the lessor
  • Lease term is usually short for narrowbody aircraft
    • 3 to 7 years is typical, but can range from 1 day to 80% of aircraft useful life
  • Longer lease term is typical for widebody aircraft Airline returns airplane to lessor when lease ends
  • Airline may have option to renew lease or purchase aircraft at fair market value

Operating Lease Costs Are Categorized Into Three Major Areas

Leasing

  • Typically between 3.0% and 5.0% of aircraft capital value as a cost per month
  • Actual lease rates are determined by aircraft supply and demand

    Maintenance reserves

    • Paid to lessor and available for scheduled maintenance
    • Typically equal to mature maintenance cost for aircraft but can vary widely

    Security deposit 

    • Typically equal to 2 to 3 months of lease payments
    • Returned to airline at end of lease

    Advantages and Disadvantages of Leases

     

    Advantages

    • Capital investment requirements reduced
    • Can increase fleet plan flexibility
    • Lessor assumes aircraft residual value risk
    • Airplane may be available for earlier delivery
    • Financial statement impact minimized
    • Payments can either be fixed or floating depending on Lessee requirements

      Disadvantage

      • Airline exposed to lease rate fluctuations
      • Airline does not gain equity in the fleet
      • May have smaller tax benefits than purchase or finance lease
      • Airline must satisfy lease contract requirements (administrative, reporting, maintenance)
      • Lessor may restrict the use of the aircraft
      • Lessee pays withholding or other additional taxes

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