Mint Air’s business strategy is to buy used aircraft in the open market and lease them to charter operators. By purchasing used planes in the aftermarket, the Company intends to take advantage of the recent decline in aircraft prices to increase the return on investment. From 2014 to 2017, as the charter market has improved, prices have declined by 26%.
By providing them with unencumbered access to its planes, the charter operators can avoid the high customer maintenance and inefficiencies associated with the typical individual high-net-worth owners. As a result, Mint Air will receive priority with flights resulting in maximum lift for its planes.
Mint Air’s strategy is to target the larger charter operators, who have a fleet of 15 or more, providing them with additional capacity. The Company will have commitments from the charter operators before purchasing the planes to minimize its placement risk.