Dry & Wet Leasing of Aircraft

Leasing is at the heart of aviation, from airlines adding capacity for a season to private owners placing an aircraft with an operator. The first question is always the same: is it a dry lease or a wet lease? Jaffa & Co advises lessors, lessees, airlines and owners on dry lease and wet lease aircraft transactions, alongside operating and finance leases.

Dry leasing

Under a dry lease, the lessor provides the aircraft alone. The lessee supplies the crew, maintains and insures the aircraft, and takes operational control. Dry leases are common for longer terms and for airlines and operators building their fleets.

Wet leasing

Under a wet lease, the lessor provides the aircraft together with crew, maintenance and insurance, and keeps operational control. Wet leases are typically shorter, used to cover peaks in demand, delays in deliveries or aircraft out of service. In commercial aviation they usually require the approval of the relevant aviation authority.

Key terms

• Delivery and return conditions, and how they are inspected
• Maintenance responsibilities and, for longer leases, maintenance reserves
• Insurance, liability and indemnities
• Registration, and the approvals needed to lease the aircraft in or out
• Rent, security deposits and events of default
• Assignment of manufacturer warranties

Our experience

Our team has advised airlines, lessors and financiers on leasing transactions ranging from single business jets to fleets of commercial aircraft, including the novation of an A320 lease between lenders and the assignment of airframe and engine warranties.