Wet Lease v.s Dry Lease

[Ref Course AVIA 4003 Handout]

There are 2 common types of leasing:

Wet lease – Airline (the lessor) provides an aircraft, complete, crew, maintenance and insurance (ACMI) to lessee. The ACMI arrangement exclusively used between two airlines whereby the lessee should not only pay for the hours operated, it (lessee) also need to provide fuel and cover airport, overflight charges and any other duty taxes. This method is normally used for short-term leasing.

Dry lease – an arrangement covering the hire of an aircraft which does not include provision of a flight crew or cabin crew. This method is normally used for long-term leasing

 

WHY airline need to lease aircraft?

Aircraft leases from other airlines or leasing companies for two main reasons:

  1. to operate aircraft without the financial burden of buying them and
  2. to provide temporary increase in capacity

 

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# What’s damp lease?

 

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