eastern023
Posts: 631
Joined: Wed Jul 19, 2006 2:54 am

What Type Of Aircraft Leases Are There?

Wed Oct 11, 2006 10:41 pm

What type of leases exist in this industry. What is a wet lease?
AA will Rise Again!
 
Kevin777
Posts: 951
Joined: Mon Sep 25, 2006 5:36 pm

RE: What Type Of Aircraft Leases Are There?

Wed Oct 11, 2006 10:55 pm

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
 
Lokey123
Posts: 121
Joined: Mon May 08, 2006 6:59 am

RE: What Type Of Aircraft Leases Are There?

Wed Oct 11, 2006 11:50 pm

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.
 
eastern023
Posts: 631
Joined: Wed Jul 19, 2006 2:54 am

RE: What Type Of Aircraft Leases Are There?

Wed Oct 11, 2006 11:54 pm

Thanks for the notes
AA will Rise Again!

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