Why is it called a wet lease?

In the charter industry, the FAA regulates two main types of aircraft leases: a “dry lease” or a “wet lease.” A wet lease means that the organization or person who owns the aircraft will provide that aircraft as well as one or more crew members to the lessee. Under a wet lease, the lessor has operational control.

How does a wet lease work?

Wet lease: Under a wet leasing arrangement, the owner supplies the aircraft as well as at least one crew member, according to the FAA. The owner assumes operational responsibility, which includes performing maintenance, procuring insurance, and other legal responsibilities of operations.

What does wet lease mean?

us. an agreement to pay to use an aircraft with a crew, fuel, and insurance. Compare. dry lease. wet lease.

What is the difference between dry and wet lease?

In a dry lease arrangement, the aircraft owner is providing the aircraft to the lessee without crew. In a “wet” lease situation, because the lessor is providing both aircraft and crew, the lessor maintains operational control of all flights.

Why do airlines wet lease?

A wet lease is typically utilized during peak traffic seasons or annual heavy maintenance checks, or to initiate new routes. They can also be considered a form of charter whereby the lessor provides minimum operating services, including ACMI, and the lessee provides the balance of services along with flight numbers.

Why do Irish planes lease?

A favourable corporate tax regime, double tax treaties, first-rate infrastructure, highly skilled talent pool and rich aviation heritage, are among the reasons why the Irish aviation market has grown exponentially in recent years. Today, Ireland is an unrivalled centre of excellence within the aviation sector.

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.

What percentage of the worlds aircraft are leased?

In 2020, 46 percent of the total aircraft in use are were leased, which is an exponential increase from only half percent in 1970. In 2020, there were a total of 158 aircraft lessors in the world.

Why are there so many aircraft leasing companies in Ireland?

A favourable corporate tax regime, double tax treaties, first-rate infrastructure, highly skilled talent pool and rich aviation heritage, are among the reasons why the Irish aviation market has grown exponentially in recent years.

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).