ACMI lease A lease contract between two parties, through which an entity with an air operating

agreement certificate (an air carrier) is the lessor. The lessor provides the aircraft, crews,
maintenance, and insurance (ACMI) to the lessee. The second party, in most cases
also with an air operating certificate, is the lessee. The lessee is responsible for the
schedule, flight charges, cargo handling, crew support, flight operations, ramp
handling, aircraft servicing, fuel, etc. ACMI charges are typically based on an hourly
rate, with a minimum number of hours to be operated per specified period.
Aircraft ULD An assembly of components consisting of any of the following:
1. Aircraft container
2. Aircraft pallet and pallet net
3. Aircraft pallet and pallet net over a nonstructural container or igloo
The purpose of the unit load device (ULD) is to enable individual pieces of cargo to
be assembled into a standard-size unit to facilitate efficient loading and unloading of
aircraft having compatible handling and restraint systems.
Airline Tariff A corporate entity wholly owned by certificated air carriers that publishes and
Publishing Company distributes passenger fares and cargo tariffs throughout the air transport, travel, and
(ATPCO) shipping industries.
Air Operator's The AOC is the key link to safety oversight. It attests to an airline's competence as
Certificate (AOC) to safe operation and it determines who is responsible for an airline's safety
oversight. In the US it is issued by the FAA. In the UK it is issued by the Safety
Regulation Group of the CAA. An AOC is one of the criteria required in order for any
nation’s civil aviation regulatory body to grant an operating license. Known also as
an Air Carrier Certificate in the US.
AS 1825 Volume The Society of Automotive Engineers, Inc. (SAE) Aerospace Standard. AS 1825,
issued July, 1983, developed recommended standards for determining usable
internal volumes in a variety of areas. Generally speaking, container volume is
calculated as 93.5 percent of the external envelope volume. For pallets, volume is
determined by making the following allowances:
1. Pallet thickness: 0.75 inches (19mm) for commercial and 2.25 inches (57mm)
for military.
2. Length and width: assumes a 2-inch setback from the outer edges of the
pallet.
Height: controlled by a 2-inch clearance dimension allowance to the minimum
aircraft envelope through which the pallet must pass. For detailed information, see
the referenced Aerospace Standard.
Available seat- Or available seat-miles (ASMs) measure capacity. The number of seats on an
kilometers (ASKs) airplane multiplied by the number of kilometers or miles flown (empty or full) by that
airplane (i.e. airplane capacity). Same measure for all aircraft in the fleet over a
specified period of time will show total airline capacity during that period.
Available freight A measure of airline or aircraft cargo capacity and production; calculated as the
tonne-miles or tonne- product of total cargo payload capacity and distance flown.
kilometers (AFTMs or
AFTKs)

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Average daily flight Represents the average number of flight hours flown in scheduled service per day
hour utilization per aircraft for the total fleet of operated aircraft.
Base maintenance Comprises in-depth inspections known as system checks and structural checks, as
well as the consequent non-routine tasks.
• A system check is traditionally known as a C-check and is typically done up to
three years depending on airplane type.
• A structural check is also known as a D-, 4C-, or SI-check. This complete
structural inspection and restoration of an airplane is referred to as the
completion of a maintenance cycle. When in a blocked maintenance
program, this inspection is accomplished after an aircraft has been in
operation from 4-12 years, depending on the operator, airplane type, and
utilization.
Bilateral agreement An agreement or treaty between two nations, contracting for reciprocal international
air service to be operated by designated carriers of each nation. The agreement
may include provisions for the types of aircraft to be used, frequency of service,
intermediate stops en route, aircraft airworthiness compliance, insurance
requirements, fuel taxation, and arbitration procedures. These are normally
standardized agreements applied to negotiations between one nation and numerous
other nations, which allow for the inclusion of different routes and service points by
various carriers.
Break-even load Represents the percentage of seats that must be filled in order for scheduled
factor passenger revenue to cover operating expenses. Calculated by dividing cost per
available seat-mile (CASM) by revenue per revenue passenger mile (RRPM).
Codeshare A marketing arrangement in which an airline places its designator code on a flight
operated by another airline and sells tickets for that flight. This offers carriers an
opportunity to provide service to destinations not in their route structure. The sale of
codeshare seats can vary depending on the sale arrangement between the carriers.
Cost per available Or CASM (cost per available seat-mile) The unit operating cost of an airline
seat-kilometer expressed for each seat mile offered. Operating cost divided by ASK or ASM.
(CASK) Typically expressed in US cents.
Cargo load factor The percentage of capacity available to carry cargo that is actually used to carry
such cargo. Load factor may be calculated on the basis of volume, weight, or unit
loading device capabilities. On passenger aircraft, cargo capacity excludes the
space necessary to carry passenger baggage. The most common method of
computing cargo load factor is the ratio of the actual cargo load by weight to the
available cargo weight capacity based on a carrier’s cargo density assumptions.
Cargo revenue tonne- A measure of cargo operation productivity. Calculated as the product of cargo
miles or tonne- carried (revenue tons or tonnes) and the distance flown in the revenue service.
kilometers Cargo tonnage includes freight, express packages, and mail.

Certification, ULD Approval by the appropriate governmental airworthiness authorities indicating that
the aircraft unit load device (ULD) meets their safety requirements.
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Charter A non-scheduled flight operated according to the national laws and regulations of
the country being served, as provided for in Article 5 of the Chicago Convention. A
flight on which all (or almost all) the capacity which is occupied by passengers or
cargo has been sold to one or more charters for resale. Sometimes charter
operators seek to sell some seat-only tickets in order to fill the aircraft (some
aviation partners are more liberal than others; some will allow any type of charter,
including seat-only, subject to reciprocity; others control charter operations very
tightly).
CIF A pricing method that includes cost, insurance, and freight.
Computer reservation A computerized system that displays information on availability of seats and
system (CRS) connecting services etc., and provides comprehensive facilities for direct booking by
travel agents.
Convertible aircraft An aircraft which is certified for, and can be converted between, an all-passenger
configuration and an all-cargo configuration.
Damp lease An ACMI, includes cockpit crew but without not cabin crew. The lessee would
provide its own cabin crew.
Deferred rate An air cargo rate that is lower than the corresponding standard rates for a
comparable shipment. Shippers using a deferred rate agree in advance to a lower
level of service in return for the reduced rate.
Direct operating Costs that are directly related to or caused by operating the aircraft.
costs
Dry lease An aircraft leasing arrangement between two parties. The lessor provides the aircraft
to the lessee. The lessee operates the aircraft under its AOC and provides its own
crew, fuel, maintenance, insurance, etc. as required for operation. Lessee pays
rental payments and typically maintenance reserves to lessor. (Compare “ACMI”
and “wet lease.”)
European Aviation The European Aviation Safety Agency is the centerpiece of the European Union’s
Safety Agency strategy for aviation safety. Their mission is to promote the highest common
(EASA) standards of safety and environmental protection in civil aviation. (Refer to
http://www.easa.europa.eu)

Extended operations Certification requirement that allows extended range operations for those flights
(ETOPS) conducted over a route that contain a point further than one hour flying time at the
approved one-engine inoperative cruise speed (under standard conditions in still air)
from an adequate airport.

Finance lease Type of long-term debt financing used to support aircraft acquisition. Generally
under a finance lease, the risks and rewards associated with aircraft ownership lie
with the lessee (the airline). Both asset and debt appear on lessee’s balance sheet.
Lessee pays scheduled principal and interest payments to lender/lessor and incurs
depreciation of the aircraft asset. Lessee also pays all costs associated with
operating aircraft including crew, fuel, maintenance, insurance, etc. Lessee also
typically assumes residual risk.
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Fleet planning Determine which aircraft should be operated and in what numbers to meet the
needs of the business. Typically, this involves evaluating new and existing aircraft
types, comparing all the costs and checking compatibility with the existing fleet and
route network.
General The tariff rates published that are applicable to all articles or commodities not
commodity rate specifically identified elsewhere in the carrier’s governing rules tariff as a “Specific
Commodity.” Often abbreviated as “G.C.”
Ground handling Company that provides ground handling support services to airlines. Ground
operator handling may include: aircraft cleaning, catering, ticketing and check in of
passengers as well as engineering support.
Hub and spoke A hub is an airport on which traffic from a number of peripheral points is
system concentrated, and which is in turn linked by direct flights to peripheral (spoke) points.
Such systems can involve linking a gateway airport to a number of domestic points
(common in the US) or can be used in change of gauge operations. Compare with
point-to-point.
Hundredweight The standard tariff unit used for establishing U.S. domestic cargo rates for
shipments over 100 pounds that are rated on a weight basis. Hundredweight is
abbreviated as cwt.
Indirect operating All costs incurred by the airline that are not directly associated with the operating of
costs the aircraft. Such costs include marketing, administration, rent, IT and ownership.
Interlining Changing, at an intermediate point on a journey, from one aircraft to an aircraft of a
different airline but without any sharing of the airline codes. Compare code sharing.
International Aviation The United States Federal Aviation Administration (FAA) established the IASA
Safety Assessments program through public policy in August of 1992. FAA's foreign assessment
(IASA) Program program focuses on a country's ability, not the individual air carrier, to adhere to
international standards and recommended practices for aircraft operations and
maintenance established by the United Nation's technical agency for aviation, the
International Civil Aviation Organization (ICAO). (Refer to
www.faa.gov/about/initiatives/iasa/.)
Internal volume, ULD The maximum total available cubic space within a cargo container or pallet net
envelope. The internal volume of containers with the same type or designation
varies by manufacturer and materials. The Pallets and Containers section of the
StartupBoeing website indicates the AS 1825 Volume, which is generally
calculated as 93.5 percent of the external envelope volume. This serves as a
practical internal volume figure, accommodating the majority of manufacturing
variations.
International A worldwide not-for-profit Air Cargo Industry Association with broad-based
Air Cargo membership that includes airlines, forwarders, airports, ground handlers, all-cargo
Association carriers, motor carriers, multimodal operators, and customs agencies. The
organization’s primary objective is to advance the interests of the air cargo industry
and strengthen its contribution to world trade. (Refer to www.tiaca.org)

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International Air A voluntary industry association founded in 1919, which is open to scheduled air
Transport carriers whose home countries are members of the International Civil Aviation
Association (IATA) Organization (ICAO). IATA is actively involved in virtually every aspect of airline
operations and management. Primary functions include provision of a wide range of
services to airlines, airports, governments, and consumers. Primary products and
services include consulting, publications, and training for both passenger- and
cargo-related issues. (Refer to www.iata.org)

International Civil A United Nations body formed in December 1944 under the auspices of the Chicago
Aviation Organization Convention with the objectives of developing the principles and techniques of
(ICAO) international air navigation and fostering the planning and development of
international air transport so as to: ensure safe and orderly growth of international
aviation throughout the world; encourage the arts of aircraft design and operation for
peaceful purposes; encourage the development of airways, airports and air
navigation facilities for civil aviation; meet the needs of peoples of the world for safe,
regular and efficient and economical air transport; prevent economic waste caused
by unreasonable competition; ensure the rights of states are respected; avoid
discrimination between states; and promote the safety of flight. (Refer to
https://www.icao.int/Pages/default.aspx)
Layout of passenger Aircraft interior configuration document is an engineering diagram of the cabin
accommodations interior but is not limited to locations of passenger and flight attendant seats, exits,
(LOPA) lavatories, galleys, emergency equipment, etc.
Line maintenance Routine servicing, troubleshooting, and maintenance corrective actions required for
airplane dispatch. Line maintenance generally includes transit checks, daily checks,
and service checks, all of which are traditionally called the A-check.

Load factor The percentage of capacity available to carry payload that is actually utilized.
1. Passenger load factor: The percentage of seats available that are actually
purchased by passengers (or RPKs divided by ASKs).
2. Cargo load factor: The percentage of cargo load by weight based on a
computed cargo weight capacity based on a density assumption. This is the most
common method of computing cargo load factor.
3. Position load factor: The percentage of loaded ULDs to cargo ULD positions
available on an aircraft.
4. Volume load factor: The percentage of the volume actually used to carry cargo
to the usable internal volume of ULDs and bulk compartments.
5. Weight load factor: The percentage of actual cargo weight to the maximum
payload weight available on an aircraft when loaded for a specific range.
Lower deck ULD A unit load device (ULD) (pallet or container) carried in the lower deck/hold/lobe
cargo compartment. These units are commonly designated with an “LD” prefix, plus
a number. Many come in both full and half sizes, as related to the width of the lower
deck (e.g., LD-1 through LD-11).

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Main deck ULD A unit load device (ULD) (pallet or container) carried on the main or primary aircraft
payload deck. These units are commonly designated with an “A” or “M” prefix, plus a
number (e.g., A, A2, Modified A, M1, M4, M6).

Maintenance Cash paid to lessor (typically on monthly basis) and available for scheduled
reserves (MRs) maintenance of aircraft and engines. MRs are based on the cost to restore
performance and utility to an airplane’s high maintenance cost elements. MRs
protect the asset from airline operational risk and are typically required by the lessor
as a part of an operating lease agreement.
Manufacturer’s empty The weight of an aircraft’s structure, power plants, systems, furnishings, and other
weight (MEW) required items of equipment that are an integral part of a particular aircraft
configuration. MEW is essentially a “dry” weight, including only those fluids (e.g.,
hydraulic) in closed systems.

Maximum gross The maximum allowable combined weight of the unit load device (ULD) and its
weight for a ULD contents/payload.
Maximum landing The maximum certified total aircraft weight for landing, as limited by aircraft strength
weight (MLW) and airworthiness requirements.
Maximum takeoff The maximum certified total aircraft weight at takeoff brake release, as limited by
weight MTOW) aircraft strength and airworthiness requirements.
Maximum zero fuel The maximum certified total aircraft weight allowable before usable fuel must be
weight (MZFW) loaded in the aircraft, as limited by aircraft strength and airworthiness requirements.

Net margin Represents net profit after tax as a percentage of total revenue.
Network Airline term for all destinations that a particular airline flies to.
Operating Empty Manufacturer’s Empty Weight plus Standard and Operational (S&O) items.
Weight (OEW) Standard Items:
Equipment and fluids not considered an integral part of a particular aircraft and not a
variation for the same type of aircraft. These items may include, but are not limited
to, the following:
• Unusable fuel and other unusable fluids
• Engine oil
• Toilet fluids and chemicals
• Fire extinguishers, pyrotechnics and emergency oxygen equipment
• Structure in galleys, buffets and bars
• Supplementary electronic equipment
Operational Items:
Personnel, equipment and supplies necessary for a particular operation but not
included in Manufacturing Empty Weight or Standard Items. These items may vary
for a particular aircraft and may include, but are not limited to, the following:
• Crew and Baggage

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 • Manuals and navigational equipment
• Removable service equipment for cabin, galleys and bars
• Food and beverages, including liquor
• Usable fluids other than those in useful load
• Life rafts, life vests and emergency transmitters
• Aircraft unit load devices
Operating margin Represents operating profit as a percentage of total revenue.
Operating statistics Capacity: ASKs or ASMs (passengers); AFTKs or AFTMs (cargo)
Traffic: RPKs or ASKs (passengers); RFTKs or AFTKs (cargo); Load Factor:
ASK/RPK (passengers) ; RFTK/AFTK (cargo)
Revenue: RASK or RASM; RAFTK or RAFTM; Yield
Cost: CASK or CASM; CAFTK or CAFTM
Point to point A system whereby an airline's route network is composed of a number of city pairs,
not necessarily linked by hub airports. This system is favored by low-cost carriers
such as Southwest Airlines (in the US), easyJet and Ryanair (in Europe). Compare
with hub and spoke.
Revenue passengers Represents the number of scheduled fare paying passengers booked.
Revenue per Or RASM (Revenue per available seat-mile) The unit revenue base of an airline
available seat- expressed for each seat kilometer or seat mile offered. Revenue divided by ASKs or
kilometer (RASK) ASMs. Typically expressed in US cents.
Revenue passenger- Or RPM (Revenue passenger-mile) Measures traffic. The number of fare-paying
kilometer (RPK) passengers multiplied by the number of km’s or miles they fly.
Sale/leaseback Airline sells its aircraft to lessor and then leases the aircraft back into its fleet under
transaction (SLB) an operating lease, typically a dry lease. (See “dry lease”.)
Sectors flown Represents the number of scheduled passenger or cargo flight sectors flown.
Seat pitch The distance between the rows of seats as measured from the back of one seat to
the back of the seat behind. The measurement is taken from the same position on
each seat.
Shipper’s An association of shippers, a legal entity, which acts in unison to increase the
cooperative quantity of freight offered to carriers for transport. A key objective of most shippers’
cooperatives is to obtain lower cost volume rates. A shipper’s cooperative may, in
some cases, also act as an agent of the direct air carrier.
Spill Passengers turned away from a flight due to capacity restrictions. Demand exceeds
supply.

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Standard-body Aircraft which generally have a fuselage diameter of less than 200 inches (5.08
aircraft meters).
Passenger: Commonly referred to as “single-aisle” aircraft.
Cargo: Payloads less than 45 Tonnes, (99,208 lbs). In most configurations and
applications, this limits main deck cargo loading to a single row of full-size Unit Load
Devices longitudinally. Examples: DC-9F, 727F, 737-200C, B737-300SF, 737-
400SF, 737-800BCF, B757-200F, and DC-8-73F.
Structural-limit Maximum aircraft payload calculated as a structural limit: maximum zero fuel weight
payload minus operating empty weight.
Tare weight The weight of an empty unit load device (ULD) (pallet or container), including all
liners, doors, fittings, and nets. This varies by manufacturer for a given ULD type.
Tare weight A “free weight” allowance given to shippers as part of a unitization incentive program
allowance to encourage the use of unit load devices.
Ton A unit of weight measurement. As most commonly used, a “short ton,” or U.S. ton
(2,000 pounds), as compared to a “long ton” (2,240 pounds).
Ton-mile One ton transported a distance of one mile.
Tonne The French spelling of “ton” used in the air cargo industry to denote a metric ton
(1,000 kg or 2,204.6 lb).
Tonne-kilometer One metric ton transported a distance of one kilometer
Unit load A number of individual pieces of freight or cargo in a single box or container, or on a
pallet, and held in place with a net or similar device, to make them suitable for
transporting, stacking, or storage as a single unit. It may also be a single large item
packaged for transporting, stacking, or storage.
Volume utilization A measure of the proportion of the unit load device ULD volume used to stow cargo
expressed as a percentage. Volume utilization is calculated as follows:
Volume utilization = ULD volume used for cargo divided by ULD total internal
volume
Weight break A cargo tariff parameter, which describes the weight of a cargo shipment at which a
lower rate per pound (or per kilogram) becomes effective. (See “minimum weight”
and “pivot weight.”)
Example: 0–99 kg, $.45/kg; 100–250 kg, $.42/kg; over 250 kg, $.38/kg
Wet lease A leasing arrangement between two parties. The lessor typically provides the
aircraft and crew. Other operational requirements such as fuel, insurance, ground
services, and maintenance are as negotiated. In the practical sense, wet leases
function between the general provisions of an aircraft-only “dry lease” and an “ACMI
agreement.” (See “ACMI” and “dry lease.”)

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Workrate The number of trips an aircraft makes in the period, times the average trip distance,
times the cargo capacity. It is primarily used in macroeconomic-approach fleet
planning.

Yield Passenger: Passenger revenues divided by RPKs. It describes how much revenue
an airline is receiving per passenger kilometer flown. Typically expressed in US
cents.
Cargo: Air transport revenue per unit of weight and distance. For U.S. domestic
and international traffic, it is ordinarily stated as dollars per ton-statute mile. For
international traffic, it is generally stated as units of currency per tonne-kilometer.
The term “yield” is often confused with “average revenue.” Yield considers the
distance carried, while average revenue does not.

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AAPA Association of Asia-Pacific Airlines
ACI Air Cargo, Inc.
ACMI Aircraft, crews, maintenance, and insurance
AD Airworthiness directive
AEA Association of European Airlines
AFM Airplane flight manual
AOC Air operator’s certificate
APU Auxiliary power unit
ATC Air Traffic Control
ATK Available tonne-kilometers
ATM Available ton-miles
ATPCO Airline Tariff Publishing Company
B Boeing, aircraft manufacturer (e.g., B747F)
BCF Boeing-Converted Freighter
CAA Civil Aviation Authority (United Kingdom)
CAAC Civil Aviation Authority of China
CFMI CFM International, engine manufacturer, a GE/SNECMA consortium
CIS Commonwealth of Independent States
Combi Combined main deck passenger/cargo aircraft
CRAF Civil Reserve Air Fleet
CRS Computer reservation system
Cu Cubic
DDG Deviation Dispatch Guide
DOT Department of Transportation (United States)
EASA European Aviation Safety Agency
EFIS Electronic flight information system
EPNdB Effective perceived noise level in decibels
ER Extended range
ETOPS Extended operations
EU European Union
FAA Federal Aviation Administration (United States)
FAR Federal Aviation Regulations (United States)
FADEC Full authority digital engine controls
FCOM Flight Crew Operations Manual
FCTM Flight Crew Training Manual
FF Frequent Flier
FPPM Flight Planning and Performance Manual
ft Feet
ft3 Cubic feet (dry volume measure)
FTK Freight tonne-kilometers
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FTM Freight ton-miles
GDS Global Distribution Systems
GE General Electric, engine manufacturer
H/K Hushkit (engine noise—reducing system)
hp Horsepower
IAE International Aero Engines, engine manufacturer (R-R, P&W, JAE, MTU, and Fiat)
IASA International Aviation Safety Assessments (IASA) Program
IATA International Air Transport Association
ICAO International Civil Aviation Organization
IFE In-Flight Entertainment
IFR Instrument Flight Rules
in Inches
JAA Joint Aviation Authority
JAR Joint Aviation Regulations
kg Kilograms (metric weight measure)
km Kilometers (metric distance measure)
kN Kilonewtons (metric thrust measure)
km/h Kilometers per hour (speed in kilometers per hour)
kn Knots (speed in nautical miles per hour)
kW Kilowatts (electrical power/energy)
lb/lbt Pounds/pounds of thrust
LTL Less than truck load shipment
L Liters (metric liquid volume measure)
M Modified
m3 Cubic meters (metric dry volume measure)
MD McDonnell Douglas, aircraft manufacturer (e.g., DC-8, MD-80)
MMEL Master Minimum Equipment List
MEW Manufacturer’s empty weight
mi/h Miles per hour (speed measure)
MLW Maximum landing weight
MNPS Minimum Navigation Performance Specification
MTOW Maximum takeoff weight
MTW Maximum taxi weight
MZFW Maximum zero fuel weight
NAS National Aerospace Standards
NATO North Atlantic Treaty Organization
NCD Nose cargo door
NMI Nautical miles (distance measure)
NRN Noise reduction nacelle
OAG Official Airline Guide
OEM Original equipment manufacturer
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OEW Operating empty weight
P&W Pratt & Whitney, engine manufacturer
PAX Passengers
PF Package freighter
PIP Performance improvement program
QC Quick change aircraft and/or associated equipment
QRH Quick Reference Handbook
RE Re-engine
R-R Rolls-Royce, engine manufacturer
RTK Revenue tonne-kilometers
RPK Revenue passenger kilometers
RVSM Reduced Vertical Separation Minimum
SII Stage 2 hushkit designation
SIII Stage 3 hushkit designation
SCD Side cargo door
S/N Serial number
SF Special freighter, converted passenger aircraft
SHP Shaft horsepower
SQ Square
SR Short range
STC Supplemental type certificate
STOL Short takeoff and landing
TCAS Traffic collision avoidance system
TIACA The International Air Cargo Association
TSO Technical standard order
ULD Unit load device
U.S. gal U.S. gallons (liquid volume measure)
VFR Visiting friends and relatives or Visual flight rules

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