What is aircraft dry leasing?
A dry lease aircraft is a leasing arrangement whereby an aircraft financing entity (lessor), provides an aircraft only (without crew, engineers or ground staff). An airline contracts the aircraft (without crew, maintenance or insurance) from a leasing company or bank, placing the aircraft on their own air operators certificate (AOC) and providing the aircraft registration, however uses its own flight and cabin crew to operate the aircraft.
A dry lease agreement will be impacted by a number of elements including depreciation, maintenance, insurance as well as the political and geographical location of the lessee and typically lasts upwards of two years.
Dry leasing is a more cost effective lease over a longer period of time for a lessee as they would not be outsourcing costs associated with ACMI (Wet or Damp lease) such as crew (hotac&travel), maintenance and insurance, of which they have no control over and these aspects would be managed by themselves. Our team of consultants provide robust financial solutions and strategic advice tailored specifically to the need of your business and the unique dynamics of the aviation industry.