Most airlines do not own all the aircraft they fly. Leasing lets operators grow, replace aircraft or cover peak seasons without buying aircraft outright. The words used can be confusing: dry lease, wet lease, ACMI, damp lease. Here is what each means.
Dry lease: the aircraft only
The lessor provides the aircraft alone. The airline (lessee) supplies the crew, maintenance and insurance, operates the aircraft under its own air operator certificate and usually registers it in its own country. Dry leases are typically long-term, often several years, and are the main way airlines build their fleets.
Wet lease: aircraft plus crew and more
The lessor provides the aircraft, crew, maintenance and insurance (ACMI). The aircraft flies under the lessor's operating certificate, often on behalf of the lessee's flight numbers. Wet leases are usually short-term, from a few weeks to a few months.
- Covering peak seasons and pilgrimage or holiday demand.
- Replacing an aircraft grounded for maintenance.
- Testing a new route before committing aircraft to it.
ACMI
ACMI stands for Aircraft, Crew, Maintenance and Insurance. The term is used for wet-lease contracts where the lessee pays per block hour and covers the remaining costs itself: fuel, airport and navigation charges, handling and catering.
Damp lease
A middle path: the aircraft comes with some crew, typically the flight crew, while the lessee provides the cabin crew.
Compared
| Dry lease | Wet lease / ACMI | |
|---|---|---|
| Lessor provides | Aircraft | Aircraft, crew, maintenance, insurance |
| Operated under | Lessee's certificate | Lessor's certificate |
| Typical term | Years | Weeks to months |
| Best for | Building a fleet | Short-term capacity |
Regulation in India
Leasing arrangements for Indian operators require approval from the DGCA, and foreign-registered aircraft on wet lease are permitted only under specific conditions. Lessors and lessees also need clear agreements on maintenance standards, return conditions and insurance.
Key questions before signing
- Who is responsible for maintenance, and to which standards?
- What are the return conditions (engine life, checks, paint)?
- What happens if the aircraft is grounded?
- Which approvals are needed, and who obtains them?
X Space also supports aircraft buying and selling and leasing and management.
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