Wet Lease Agreement Meaning

Often, the crewed rental aircraft is older or in worse condition than the booked aircraft, which leads to some disappointment. However, with evelop! In an Airbus A350, there could be passengers pleasantly surprised when the planes are rented wet. HiFly`s A380 retains Singapore Airlines` first-class suites, so some lucky passengers might get an upgrade. Have you ever been surprised and ended up on a crewed rental plane when you expected the opposite? Was the experience better than expected or worse? Let us know in the comments. 14 CFR 110.2 defines a “crewed lease” as “any lease agreement in which a person agrees to provide an entire aircraft and at least one crew member.” (Don`t pay attention to any reference to fuel.) Generally, parties entering into air-lease agreements are certified air carriers, such as airlines operating under Part 121 of 14 CFR and charter operators operating under Part 135 of 14 CFR. However, 14 CFR 91.501(c) provides for certain timeshare and exchange agreements in which the aircraft and crew are united. And while these agreements are considered crewed leases because they include both aircraft and crew, they are 14 CFR Part 91 operations where the parties to the transactions don`t necessarily have to be air carriers. According to Wikipedia, “a typical dry lease lasts more than two years and has certain conditions in terms of depreciation, maintenance, insurance, etc., also depending on the geographical location, political circumstances, etc.” The first is obviously the plane. Some crewed charter airlines operate small fleets of A320s or 737s, but others, like Hi Fly, operate the entire airbus aircraft range: A320, A330, A340 and A380, from 150 to 500 seats, from medium-haul to long-haul, from narrow weight to very large. Several companies in the aviation sector not only offer aircraft for rent, but also offer their own pilots, flight crews, maintenance certificates and even airline.

This is called crewed leasing. There is another clear reason for leasing – finances. Buying an airplane can be difficult for many reasons, from practicality to financial reasons. Leasing is an attractive option that allows operators to do without the financial stress of a real purchase. This is not surprising at all – but it can also cause a problem when a lease is arranged to circumvent FAA regulations and rules. A dry lease is a lease in which an aircraft finance company (lessor) such as GECAS, AerCap or Air Lease Corporation provides an aircraft without crew, ground personnel, etc. Dry lease is typically used by leasing companies and banks, so the lessee must put the aircraft on their own Air Operator Certificate (AOC) and provide the aircraft registration. A typical dry lease lasts more than two years and has certain conditions in terms of depreciation, maintenance, insurance, etc., also depending on the geographical location, political circumstances, etc.

In the charter industry, the FAA regulates two main types of aircraft leasing: a dry lease or a crewed lease. Rentals are often anchored at LIBOR rates. The lease rates of the A320neo and B737 MAX 8 are 20 to 30,000 dollars higher than those of their predecessors: by 2018, a B737-8 can be leased for just over $ 385,000 per month, and a duration of 12 years with good credit can be less than $ 370,000 per month for an A320neo (0.74% of its capital cost of about $ 49 million), which generates revenues of $53 million and more than $8.5 million in compensation for the end of the maintenance-free lease. and is still worth $20 million. [7] An unmanned lease agreement may also be entered into between a large airline and a regional airline, where the large airline supplies the aircraft and the regional operator provides the flight crews, maintenance and other operational aspects of the aircraft, which can then be operated under the name of the large airline or a similar name. .

Book your tickets