A dry lease aircraft is a leasing arrangement where an aircraft financing company (lessor) simply provides an aircraft (without crew, engineers or ground staff). An airline acquires the aircraft (without crew, maintenance or insurance) from a leasing company or a bank, registers the aircraft on its own Air Operator’s Certificate (AOC) and takes care of the registration of the aircraft, but uses its own flight and cabin crew to operate the aircraft.
A dry lease agreement is influenced by a number of factors such as depreciation, maintenance, insurance and the political and geographical location of the lessee and usually has a term of more than two years.
Dry leasing is more cost effective for the lessee over a longer period of time as they do not outsource the costs associated with ACMI (wet or steam lease) such as crewing (hotac and travel), maintenance and insurance, but manage these aspects themselves. Our team of consultants offers sound financial solutions and strategic advice tailored specifically to the needs of your business and the unique dynamics of the aviation industry.
