Wet Lease vs Dry Lease Aircraft: What Are The Differences

With the consistent growth in the aviation industry, airlines are under constant pressure to grow. Due to that, the demand for leases has grown significantly in the past few decades.

An aircraft lease is a lease used by aircraft operators and airlines. Typically, airlines do this for two reasons: to get a temporary increase in flying capacity to meet demand and eliminate the financial burden of purchasing aircraft.

In the aviation world, there are two types of leasing; dry-lease and wet-lease. Simply put, a dry-lease private jet is used for a longer term while a wet-lease private jet is for short-term use. Both types also have different operational privileges and crew availability.

Below, we discuss both types of leasing and do a wet-lease vs. dry-lease comparison to help you see the difference between the two.

What is a wet lease?

A wet-lease arrangement lasts from 1 to 24 months, in which an airline gives aircraft, including maintenance and crew, to another airline. The aviation industry mainly uses wet-lease to start new routes or meet demand during high-traffic seasons. Specific examples of where wet leases are typically used include seasonal operations, where airlines handle increased demand during holiday seasons or summer vacations, and short-term increases in capacity due to sudden spikes in demand or unexpected aircraft maintenance.

Wet leases are particularly advantageous for airlines needing immediate solutions. Since the lessee gets everything from the aircraft to the crew, there is not much to worry about, and operations can start almost immediately. This makes wet-lease ideal for last-minute flying plans, such as attending a business meeting or conference where specifics were communicated at the very last minute. Additionally, wet leases are less capital-intensive compared to purchasing aircraft, freeing up cash flow rather than tying it up in an aircraft that was only bought to meet rush-month air traffic.

Pros and cons of wet leasing

Wet leasing offers numerous benefits but also comes with certain drawbacks, influenced by recent trends in the aviation industry. One significant advantage is the immediate availability of flights, which is crucial for last-minute travel needs or unforeseen increases in demand. Since the lessor handles maintenance and crew, the lessee can reduce their operational burden, making the process seamless.

However, there are drawbacks to consider. Wet leases can be more expensive in the long run due to the inclusion of crew and maintenance costs. Additionally, passengers might feel deceived if they book with one airline but end up flying on an aircraft from another due to a wet lease arrangement. Recent industry trends show an increased demand for wet leases as airlines manage fluctuating travel patterns and capacity needs. For instance, a European airline recently used wet leasing to efficiently manage increased summer travel demand, successfully avoiding delays and cancellations.

What is a dry lease?

In a dry lease, the aircraft comes without ground staff and crew. This type of lease is ideal for people who prefer not to pay upfront costs. In a dry lease, the lessee and the lessor do not need to have an air carrier certification. The lessee is responsible for providing the crew and handling all operational control aspects, including scheduling and maintenance. This allows lessees to customize the aircraft interior and services according to their preferences, enhancing the passenger experience.

Moreover, dry leases offer flexibility in changing aircraft as per evolving business needs without long-term commitments. For instance, start-up airlines often use dry leases to operate aircraft while they establish their own crew and maintenance operations. Similarly, companies may opt for dry leases to control the quality and scheduling of their corporate jets, ensuring they meet specific business requirements. The lessee manages the aircraft's maintenance, providing better control over service quality and costs.

Pros and cons of dry leasing

Dry leasing comes with several benefits, including flexibility and cost savings. Since the lessee manages the crew and maintenance, they can achieve cost savings through efficient operations. This type of lease allows airlines to test different aircraft models before committing to a purchase. Additionally, dry leases are becoming increasingly popular in the corporate sector due to their flexibility and cost-effectiveness.

However, there are also some disadvantages. Dry leases require the lessee to handle all aspects of operation, including maintenance and crew management, which can be a significant responsibility. Despite these challenges, the growing trend towards dry leasing highlights its appeal. A recent report by aviation industry analysts pointed out the increasing adoption of dry leases in the corporate sector, driven by their flexibility and financial benefits.

Wet lease vs dry lease: understanding operational control

The significant distinction between wet-lease and dry-lease is operational control, as explained by the 14 CFR 110.2. In a wet lease, the control lies with the lessor since they provide both the crew and the aircraft. Conversely, in a dry lease, the control lies with the lessee who brings their crew and staff, only getting the aircraft in the agreement. This distinction is crucial as it determines who is responsible for the aircraft’s operation.

Practical examples highlight when a wet lease might be preferred over a dry lease. For instance, airlines needing temporary additional capacity for a short period often opt for wet leases. On the other hand, dry leases are preferred for their flexibility, allowing lessees to operate under Part 91 of the CFR, avoiding the costly and restrictive requirements of Part 135 and Part 121. Whether operating an airline or flying privately, understanding the operational control in wet-lease vs dry-lease scenarios is essential to comply with FAA regulations and avoid legal issues.

Legal implications and compliance in aircraft leasing

Understanding the legal implications and compliance requirements in aircraft leasing is vital. Different FAA parts govern wet and dry leases. Wet leases fall under Part 135 regulations, where the lessor is responsible for compliance, including crew certification and operational safety standards. Dry leases, on the other hand, fall under Part 91, placing the responsibility on the lessee for maintenance and operational control.

Non-compliance with these regulations can lead to severe legal and operational consequences. Therefore, lessees and lessors should consult with aviation law experts to fully understand their obligations and ensure compliance. Keeping up-to-date with recent regulatory changes is also crucial. For example, recent updates in FAA regulations may impact how leases are structured and managed, making expert consultation even more important.

Why get a private jet?

There is no denying that private jets are a world of their own – and that too a classy one. Traveling in a private jet means you do not have to arrive at the airport three hours before time or stand in extended security and screening lines before boarding.

Even better, you can choose the private jet you want to fly in, which you cannot possibly do if you book a flight with a regular airline. Your choice comes down to your purpose of traveling and the sort of amenities you need. You can choose the exact make and model of the aircraft you want to fly in.

A wet-lease private jet comes with staff and crew, saving you the hassle of getting your team on board. If you have to be in a different city or state in a few hours, simply book an aircraft of your choice, and you’ll be on the tarmac in no time.

At FlyCFG, we give you access to 6,000+ turboprops, executive jets, and airlines, ensuring there’s someone for everyone’s taste and needs.

For instance, if you are flying to a meeting, get an aircraft with a work area or a conference room. But, if you are traveling with family to a vacation spot on the private jet, choose a model with an entertainment lounge. Your options are limitless.

From an international standpoint, private jet rentals have increased in the past few years. A report providing quantitative and qualitative analysis of the industry showed many growth opportunities in the private jet leasing industry between 2021 and 2028.

Europe generates the highest revenue in the jet rental industry due to the continent’s high living standard and disposable income. Moreover, an increase in air traffic, technological advancements, and new aircraft development are expected to influence the private jet rental industry positively.

So, why not jump on board when the rest of the world seems to be doing the same? Here are some reasons you may want to get a wet lease private jet:

Family vacations

School summer vacations are the perfect time to chill a little with the family and recharge yourself for another six months of work. The availability of some stunning vacation spots for private jets makes this prospect even more appealing.

With the readily trained crew doing everything around the aircraft, you will have ample quality time to spend with your children, especially if you choose an aircraft with an entertainment lounge.

Flexible scheduling

If you cannot afford to miss a flight or be late, it is best to hop on a private jet. With convenient scheduling and boarding as quickly as under three hours, you will never have to compromise on your travel plans.

Even better, FlyCFG also caters to your last-minute rescheduling. That is the beauty of having a renowned and responsible company at your service – your itinerary can be rearranged to meet your schedule.

More importantly, FlyCFG works around the clock. Whether you need to be in the air as early as five in the morning or late at night, there will be an aircraft for you.

On the other hand, with regular airlines, you will have to follow their schedule, which of course, can limit your travel plans.

Key factors to consider before leasing a private jet

If you plan on getting a private jet for traveling with family or for business, make sure to consider the following:

Safety: When choosing the charter company, make sure you opt for one that’s determined to provide the highest level of safety. It’s best to choose a company with ARTUS safety-rated aircraft since they let you fly with ultimate peace of mind and a matchless experience that you can not have elsewhere.

Experienced Pilots: If a company explicitly claims their pilots are the best in the field, that’s a good reason to choose them. Aircraft pilots should be professionally trained and must know everything there is to know about the jet. When choosing a company, don’t hesitate to ask for licensing and training information.

Multiple Programs: Whether you want dry-lease or wet-lease, it’s best to choose a flight program that suits your traveling habits. For instance, if you tend to travel frequently between the same region for work, a Fixed Route Program will be ideal for you. Likewise, if you travel to different areas multiple times a year, you might want to get a membership to receive a flat rate on your air travel.

FAQS on wet and dry leases

Potential lessees often have common queries about wet and dry leases. Here are some frequently asked questions:

What happens if the aircraft is damaged during the lease period? The responsibility for repairs typically falls on the lessee for dry leases, while the lessor handles it in wet leases. It's important to clarify these terms in the lease agreement.

How flexible are lease terms if business needs change suddenly? Lease terms can vary in flexibility. Dry leases often offer more flexibility to change aircraft or terms, whereas wet leases might be more rigid due to the inclusion of crew and maintenance services.