What does ACMI mean in INSURANCE

ACMI stands for Aircraft Crew Maintenance and Insurance. It is a type of wet leasing where the lessee (airline) hires another airline to provide a complete package of services such as aircraft, crew, maintenance, and insurance.

The biggest advantages of using ACMI are cost savings and flexibility in terms of operational requirements. By not having to purchase an aircraft outright or enter into a long-term lease agreement, airlines can significantly reduce their overhead costs while still meeting their operational demands. Additionally, not having to spend time and resources training personnel makes it faster and easier for airlines to get up and running quickly with minimum disruption for other operations.

Most major carriers worldwide use ACMI to fulfill their operational requirements while keeping costs low. This arrangement works especially well for startups or smaller carriers who may not have the capital or resources available to purchase their own fleet of planes or hire their own full-time staff.

Under an ACMI agreement, the lessee (airline) pays the lessor (other airline) an all-inclusive rate which covers the use of an aircraft along with its associated maintenance costs and crews as well as liability insurance coverage in case something goes wrong during operation. The lessor is responsible for providing the aircraft as well as making sure everything operates safely and properly during flight hours.

Most major commercial airlines have fleets which cover a wide range of passenger jets from small regional ones all the way up to large international ones such as Boeing 787s or Airbus A380s depending on what the client needs at any given time. Cargo planes may also be leased out depending on availability from either party involved in the contract.