In recent years Loftleidir Icelandic has been responsive to the markets requirements and hence focusing more on Dry Lease (A&M) agreements. These agreements are based on leasing the Aircraft with a special maintenance scheme and Loftleidir Icelandic has been doing this in the past few years with great success. This has become a Global operation. Currently the company has B757-200 and B767-300ER aircraft on such programs with Yakutia Airline Company in The Republic of Sakha in Siberia Russia, Santa Barbara Airlines in Venezuela and Air Niugini in Papua New Guinea, to name a few. In the past this model has also been used in Israel and in Spain. The AM program can be very beneficial for smaller carriers, or those starting up with the 757-200 and 767-300ER aircraft. With the AM contract the Lessee outsources all of the maintenance risk normally intrinsic in a Dry Lease contract, as Loftleidir Icelandic/Icelandair oversee all maintenance.
What is included in the AM agreement is
i) All maintenance reserves
d) Landing gear
e) Engine refurbishment
ii) All maintenance checks
iii) Maintenance Planning & program
iv) Supply of spare parts
v) Oversight of all record keeping
With the AM program the client has a fixed foreseen maintenance cost, as Loftleidir Icelandic covers all maintenance related cost. For example if there is a loss of an engine, then Loftleidir Icelandic takes care of that. Such unforeseen costs can be enormous for smaller carriers and even bring them to colapse. Airlines see the advantages of these options when they need to alter their fleet composition temporarily but are unwilling to expose themselves to long-term commitments; this is especially evident when access to capital is limited. Leasing aircraft with services attached is therefore a feasible option.
Loftleidir Icelandic can also assist and/or preform all training of crews for the B757-200 and 767-300ER aircraft.