Airplane Leasing

by David Jenyns on August 1, 2011

Airplane Leasing is the type of leasing done by agencies concerned with airplanes and other flying craft. This type of leasing is recommended for people who wish to have a plane available to them, but do not wish to buy the aircraft outright. It can also be used by corporations that require the use of private aircraft. There are many different varieties of aircraft leases. Essentially, individuals and groups choose to lease aircraft for two basic reasons. The first reason many people give is that leasing an aircraft allows them to operate and use the aircraft without the financial burden of purchasing it. The other reason given often is that the need for the aircraft is significant, but temporary.

There are two major types of Airplane Leasing. The first type is called “wet” leasing. Wet leasing occurs when an airline or leasing agency provides an airplane complete with crew, maintenance, and insurance. This type of lease can last anywhere from one month to two years. This type of lease is used for many different reasons, and it is the most convenient form of Airplane Leasing for many people. This is considered a type of charter flight.

Sometimes, wet leases are used for political reasons or to bypass international relations issues. It is not uncommon for governments to have problems with each other; if a government refuses to allow its airlines to fly to certain other countries, the airline can wetlease a plane and still make a profit flying to those countries.

A dry lease is a type of lease that includes only the aircraft that will be leased. A dry lease does not include insurance, crew, maintenance, or ground service. This type of Airplane Leasing is most commonly used by leasing companies and banks. Usually, the airline that is leasing the plane will require that the individual or corporation that will use the plane provide some proof of insurance. This protects the company that is leasing the plane as well as the company that is lending the plane.

Some countries also use the terminology “damp lease” and “moist lease.” A damp lease is a lease that provides most of the services that a wet lease provides, but it does not include a crew. A moist lease is the opposite: it is a dry lease, essentially, including a crew. The details of these leases can change based on the needs of the client and the requirements of the company or individual that wishes to lease the aircraft.

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