Wet Lease (Aviation)
A Wet Lease in aviation is an agreement where one airline provides an aircraft, complete crew, maintenance, and insurance to another airline. It is a comprehensive short-term solution for capacity needs.
Tumisang Bogwasi
Tumisang Bogwasi
What is Wet Lease (Aviation)?
A wet lease in aviation is a contractual agreement between two airlines where one airline (the lessor) provides an aircraft, complete crew, maintenance, and insurance (ACMI) to another airline (the lessee). This comprehensive arrangement allows the lessee to operate flights under its own flight code, often utilizing the lessor’s aircraft and operational expertise.
This type of lease is typically short to medium-term. It is frequently employed to manage temporary increases in passenger demand, cover periods of maintenance on the lessee’s own fleet, or mitigate the impact of unforeseen aircraft groundings. A wet lease provides an immediate operational solution without the long-term capital commitment of purchasing or dry leasing an aircraft.
The lessor maintains operational control of the aircraft and crew, adhering to its own regulatory certifications and Operations Manual. This includes compliance with safety standards and crew training. The lessee pays an hourly rate for the aircraft’s operation, covering all ACMI costs, while handling fuel, landing fees, passenger services, and other variable expenses.
Definition
A Wet Lease (Aviation) is an agreement where one airline provides an aircraft, complete crew, maintenance, and insurance (ACMI) to another airline, which then operates the aircraft under its own flight number.
Key Takeaways
- A wet lease involves the provision of an aircraft, crew, maintenance, and insurance (ACMI) by a lessor to a lessee airline.
- It is a flexible, short-term solution for airlines facing sudden Capacity Management challenges or expanding into new markets.
- The lessor maintains operational control and regulatory compliance for the aircraft and crew.
- The lessee typically handles fuel, airport charges, and passenger-related costs.
- Wet leases offer operational readiness without significant upfront capital investment or a long-term Funding Requirement.
Understanding Wet Lease (Aviation)
The core of a wet lease is the ACMI agreement. This means the lessor is responsible for the aircraft itself, the pilots and cabin crew, all required maintenance (scheduled and unscheduled), and insurance coverage for the aircraft and its operations. The lessee essentially
