AIRLINE FINANCE AND AVIATION INSURANCE (BBAV3001)

AVIATION LEASE & DIFFERENCE

BETWEEN WET & DRY LEASE

PRESENTED BY –
MENTORED BY –
GOVIND CHANGLANI -
18021020286 SIR SHIV KUMAR SHARMA

YASH SURYA
-18021020347

VAIBHAV MISHRA
-18021011187
 TABLE OF CONTENT
1. INTRODUCTION TO LEASE.

2. WHAT IS LEASE IN AVIATION?

3. DRY LEASE.

4. WET LEASE.
 INTRODUCTION TO
LEASE
A lease is a contract outlining the terms
under which one party agrees to rent
property owned by another party. It
guarantees the lessee, also known as
the tenant, use of an asset and guarantees
the lessor, the property owner or landlord,
regular payments for a specified period in
exchange.
 Both the lessee and the lessor face
consequences if they fail to uphold the terms of
the contract. It is a form of incorporeal right.
 WHAT’S LEASE IN
AVIATION?
Aircraft leases are leases used by airlines and
other aircraft operators. Airlines lease aircraft
from other airlines or leasing companies for
two main reasons:

 To operate aircraft without the financial

burden of buying them, and

 To provide temporary increase in capacity.

 TYPES OF LEASE :
 DRY LEASE

 WET LEASE

CONTINUED…
 DRY LEASE :
A dry lease is a leasing arrangement whereby an
aircraft financing entity (lessor), such as GECAS, 
AerCap, or Air Lease Corporation, provides an
aircraft without crew, ground staff, etc. Dry lease is
typically used by leasing companies and banks,
requiring the lessee to put the aircraft on its own 
air operator's certificate (AOC) and provide aircraft
registration.
A typical dry lease lasts upwards of two
years and bears certain conditions with
respect to depreciation, maintenance,
insurances, etc., depending also on the
geographical location, political
circumstances, etc.
 BENEFITS OF DRY
LEASE :
A dry-lease arrangement can also be made
between a major airline and a regional airline, in
which the major airline provides the aircraft and
the regional operator provides flight crews,
maintenance and other operational aspects of the
aircraft, which then may be operated under the
major airline's name or some similar name.
 A dry lease saves the major airline the
expense of training personnel to fly and
maintain the aircraft, along with other
considerations (such as staggered union
contracts, regional airport staffing, etc.).
 WET LEASE
A wet lease is a leasing arrangement whereby one 
airline (the lessor) provides an aircraft, complete
crew, maintenance, and insurance (ACMI) to
another airline or other type of business acting as a 
broker of air travel (the lessee), which pays by hours
operated. The lessee provides fuel and covers airport
fees, and any other duties, taxes, etc. The flight uses
the flight number of the lessee. A wet lease generally
lasts 1–24 months.
 A wet lease is typically utilized during peak traffic
seasons or annual heavy maintenance checks, or to
initiate new routes.[8] A wet-leased aircraft may be used
to fly services into countries where the lessee is banned
from operating. It can also be used to replace
unavailable capacity or to circumvent regulatory or
political restrictions.
 USE OF WET LEASE :

A wet lease is typically utilized during peak traffic

seasons or annual heavy maintenance checks, or to
initiate new routes.[8] A wet-leased aircraft may be
used to fly services into countries where the lessee
is banned from operating.
  It can also be used to replace
unavailable capacity or to circumvent
regulatory or political restrictions.
THANK YOU!