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What Type Of Aircraft Leases Are There?  
User currently offlineEastern023 From United States of America, joined Jul 2006, 871 posts, RR: 0
Posted (7 years 9 months 3 weeks 3 days 16 hours ago) and read 3458 times:

What type of leases exist in this industry. What is a wet lease?


AA will Rise Again!
3 replies: All unread, jump to last
 
User currently offlineKevin777 From Denmark, joined Sep 2006, 1165 posts, RR: 1
Reply 1, posted (7 years 9 months 3 weeks 3 days 16 hours ago) and read 3452 times:

Basically, there are three types of leases:

1) Dry Lease: a/c is leased - nothing else
2) Damp lease: a/c leased with pilots, but no cabin crew
3) Wet-lease: a/c leased with pilots and cabin crew

These are just the three basic, "generic" leasing forms, but there can be many variations and hybrids; for instance a damp/wet-lease where part of the cabin crew is supplied by the lessor, part by the lessee.

For obvious reasons, the longer the leasing period, the more you go towards a dry lease - a football team that charters an a/c for a match is essentially a wet-lease; financial leases (from i.e. ILFC) are (as far as I know) always dry leases.

Kevin777



"I was waiting for you at DFW, but you must have been in LUV" CPH-HAM-CPH CR9
User currently offlineLokey123 From Barbados, joined May 2006, 138 posts, RR: 0
Reply 2, posted (7 years 9 months 3 weeks 3 days 15 hours ago) and read 3430 times:

there are a few types of leases:

1.) Operating lease-lessee operates equipment but does not take title
2.) Capital/Finance Lease-Synonymus to installment payments (asset transfer)
3.) Leverage Lease- Third party Debt and Equity portion of the lease payment
4.) Single Investor Lease- same as Finance lease
5.) Sale Leaseback - Owner sells to lessor who in turn leases it back to previousowner.
6. Wet Lease (ACMI) - aircraft, crew, maintenance and insurance included in the lease.
7.)Synthetic Lease - Lessee retains tax advantage of asset (accelerated depreciation) but not carried on balance sheet.

Within each of these lease types are varying structures, usually for tax purposes, for example there is the french lease, irish lease structure, Islamic lease, and so forth and so on.


User currently offlineEastern023 From United States of America, joined Jul 2006, 871 posts, RR: 0
Reply 3, posted (7 years 9 months 3 weeks 3 days 15 hours ago) and read 3422 times:

Thanks for the notes


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