Wet Vs. Dry Lease

Mon Aug 23, 1999 2:12 am

Here is a pretty straight forward question: What do "wet" and "dry" leases mean regarding aircraft leases for airlines? Does a "wet" lease involve the owner of the aircraft also providing crews for the leaser? Or does it refer to specific forms of financing?


RE: Wet Vs. Dry Lease

Mon Aug 23, 1999 2:18 am

I dry lease is not including fuel a wet lease does.
Then there is an ACMI which is Aircraft Crew Maintenance and Insurance.
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RE: Wet Vs. Dry Lease

Mon Aug 23, 1999 2:28 am

Not sure you're right there, Airbus boy. It wouldn't make any sense to include fuel as part of the wet-lease deal, since the lessor could just as easily pay for that directly.
A wet lease is crew and aircraft. This would be more likely as an ad-hoc operation, i.e. where the leasing airline doesn't have the particular type in its fleet; companies like Air Atlanta (Iceland) do a lot of this with Tristars and 747s. Also, a dry lease might be used if a particular type was being used for, say, the Summer period. World's MD11 leases to Aer Lingus and others would be an example of that.
(Long term wet leases are relatively unusual, mostly being pilots' unions get ever so slightly cheesed off with outsiders flying for the airline!)

RE: Wet Vs. Dry Lease

Mon Aug 23, 1999 3:19 am

Airbus Boy is right about the definition of "wet", but in the wrong situation... In renting GA (general aviation) aircraft, the rental is said to be "wet" if fuel is included in the hourly rental price, as is usually the case. When you rent a plne under such an arrangement, the price of any fuel purchased during the rental period is applied as payment toward the rental, so that, for example, if you did $100 worth of flight time, and purchased $25 worth of gas, you would turn in your gas receipt and pay only $75. The term is, however, used differently when applied to airlines, as Kaitak explained.

RE: Wet Vs. Dry Lease

Mon Aug 23, 1999 12:59 pm

A wet-leased aircraft includes the Airplane, Crew, Maintainance, and Insurance, but is not limited to the terms of an ACMI contract. This is where an hourly rate is charged and the lessee is usually responsible for EVERYTHING else (hence ACMI). There is also an all-up style of contract where one price is paid and the lessor is responsible for EVERYTHING. There are variants of each type, but these are the basics. A dry-leased aircraft is where the customer contracts the aircraft ONLY, no crew, maintainance, nothing, to the extent of having it put in their Ops Specs. I am not in marketing or sales, but this info is what I have gathered from talking with our marketing and sales departments. This applies to FAR121 carriers (maybe 135), I'm not sure about general aviation or aviation schools. I hope this helps.ADIOS

How Do Dry Leases Work?

Tue Aug 24, 1999 3:24 pm

If a customer wants to lease a new aircraft, does the leasing company order the aircraft when the lease order comes in, or do they have all these planes sitting on a ramp somewhere?


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