What is a dry lease agreement?
Dry lease: In a dry lease, the owner provides the aircraft to the lessee without a crew. Neither party is required to have an air carrier certificate so long as the aircraft does not carry people or property for compensation or hire.
What is a wet lease vs dry lease?
In a “wet” lease situation, because the lessor is providing both aircraft and crew, the lessor maintains operational control of all flights. In a “dry” lease situation, the lessee provides its own crew and the lessee exercises operational control of its flights.
What is a wet lease arrangement?
According to the Federal Aviation Administration (FAA), a wet lease in aviation is “any leasing arrangement whereby a person agrees to provide an entire aircraft and at least one crew member.” Also, the leased aircraft will be covered by the leasing company with maintenance service and insurance.
Why is it called wet lease?
Wet lease. A wet lease is a leasing arrangement whereby one airline (the lessor) provides an aircraft, complete crew, maintenance, and insurance (ACMI) to another airline or other type of business acting as a broker of air travel (the lessee), which pays by hours operated.
Is wet lease an operating lease?
The distinguishing factor between wet-lease and dry-lease aircraft is who has operational control. In a wet-lease situation, the lessor maintains operational control of all flights whilst providing aircraft and crew, whereas with dry-lease the lessee provides its own crew and exercises control.
Can I rent my plane under Part 91?
FAA Compliance Considerations “Part 91 permits aircraft operations that do not involve compensation or hire, with only a few narrow exceptions. For companies seeking to offset the costs of aircraft ownership, Part 91 prohibits offering the aircraft for charter (that would require a Part 135 certificate).
How much does it cost to lease a Airbus A320?
Lease rentals, which is 1 per cent of the cost of the aircraft, for a new Airbus A320, is $350,000/month. Airlines have to provide a month’s rental plus three months lease rentals as deposits to the lessors or a lease rental for a month plus letters of credit for three months.