There are two types of leases although to some there can be considered three. We’ll go over the two that we know while also mentioning the third type.
Wet Lease
A wet lease is also known as an ACMI lease. This type of arrangement is where the lessee will be provided with the aircraft, pilot, crew, maintenance and insurance. On top of that, the aircraft will be stored and managed at a fixed base for operations (FBO).
The lessee in this arrangement is meant to pay for fuel, parking & ground fees, airport landing fees, plus a few others. A wet lease is generally a short-term lease and functions under the lessor’s aircraft operator certificate (AOC).
Dry Lease
A dry lease functions a little bit differently than above. With a dry lease, the owner will supply the aircraft. However finding management and a crew will be your responsibility.
The lessee in this arrangement will provide the maintenance operations, crew and cover the insurance. The lessee will be giving temporary use of the jet, however it will still belong to the lessor. In this situation the lessee will operate the aircraft under their own aircraft operators certificate.
Damp Lease
A damp lease is the third type which we have heard of although have not had much experience with. Basically a damp lease is an arrangement very similar to a wet lease except the lessee must take on the responsibility of finding their own pilot and crew. As long as your crew is equipped with the correct certifications and training to operate your aircraft, this should not be a problem.
Conclusion
Overall, one of the benefits of leasing an aircraft versus buying is the ability to test and see if it is a model you would like to own in the foreseeable future. If this is your first time, it’s probably a better idea to lease for a year rather than purchase outright. You’ll not only gain experience but you’ll also get a better idea of what type of aircraft will last over a given period of time based on your flight schedule and overall care of your aircraft.
Navigate here to learn more about aircraft management. Or, click here to read more about the difference between new and used aircraft.