Loss of use

Covering an airline for a pre-agreed daily claims amount, in the event that an aircraft is unable to be operated. A non-operational aircraft still has to have its lease payments met, and needs to be replaced with interim lift. The AMS loss of use policy provides dedicated cash to cover these costs and any other fixed and variable costs that an airline has to pay when equipment cannot be operated.

This coverage is crucial for start-up airline operations as working capital is soon consumed if operations have to be suspended due to the inability to operate. Coverage protects against the continued responsibility to pay lease rentals whilst an aircraft is being repaired following a partial loss. Partial losses can take months to repair and thus airlines should always consider the benefits in insuring their lease payment obligations.