The Essentials of Wet Leasing: Flexibility and Control in Aviation
A wet lease is a specialized leasing arrangement in the aviation sector where an airline (the lessee) leases an entire aircraft, complete with crew, maintenance, and insurance, from another airline or leasing company (the lessor). The term “wet” signifies that the lease includes all operational aspects needed to run the aircraft, including fuel and other consumables.
Wet leases are commonly employed by airlines to manage short-term capacity needs or to explore new markets without committing to a long-term investment. For instance, during peak travel seasons or when launching a new route, an airline might opt for a wet lease to supplement its fleet temporarily. Similarly, a wet lease can be a practical solution when an aircraft is undergoing maintenance, allowing the airline to maintain operational continuity.
In a wet lease agreement, the lessor provides a fully operational aircraft, complete with all necessary permits and clearances. The lessee pays a predetermined fee for the use of the aircraft, crew, and other operational elements for a specified duration. This arrangement offers airlines several advantages, such as immediate access to aircraft and crews, reduced financial risk, and enhanced operational flexibility.
However, wet leases also have potential drawbacks. Lessees may experience reduced control over the aircraft and crew, limited customization options, and potentially higher costs compared to other leasing methods. It is crucial for both parties to thoroughly review the terms of the wet lease agreement and seek professional advice to ensure that the arrangement meets their needs and expectations.
Wet leasing offers a valuable solution for airlines requiring short-term capacity and flexibility, balancing benefits with the need for careful contractual evaluation.
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