A dry lease is a leasing arrangement whereby an aircraft financing entity lessor, such as gecas, aercap, or air lease corporation, provides an aircraft without crew, ground staff, etc. Lessees possession, use or operation of the aircraft pursuant to this agreement shall be referred to herein as the lease operations. The reference to a dry lease means that the aircraft is being provided without fuel or flight crew. This aircraft lease agreement is between an airline or aircraft owner and a company or individual who desires to lease an aircraft. Sales tax is not due on the sale or lease of an aircraft you use and register in another state or country before using it in texas. Aircraft lease agreement, aircraft lease agreement template. You want to help your friend while simultaneously offsetting some of the unspeakable expenses associated with owning your airplane. Another example would be where the lessor is leasing you the aircraft, but you have to get your crew from the lessor or a specified source. Wet lease traditionally charter is for limited number of missions, while wet lease for fixed period 6. A dry lease enables an aircraft owner to legally earn revenue by allowing an entity to use the aircraft through a contractual agreement. Aircraft dry leases are popular in the world of private aviation.
The typical case is where the lessor is providing the aircraft under a dry lease and is also providing the crew under a separate agreement. The nbaa aircraft operating and leasing guide contains guidelines for aircraft support services agreements, dry. Commercial lettingbusiness lease united kingdom form. The document can be amended or adopted completely to fit the needs of your club. A dry lease agreement to which a community air carrier is party or a wet lease agreement under which the community air carrier is the lessee of the wet leased aircraft shall be subject to prior approval in accordance with applicable community or national law on aviation safety. A typical short term dry lease lasts upwards of two years. The irs typically imposes the commercial federal excise tax fet on wet leases and the noncommercial federal fuel tax on dry leases. May 29, 2018 first, by definition, a dry lease is a lease in which the lessor furnishes the aircraft, but doesnt provide a crew. Whereas, lessor and lessee entered into master aircraft dry lease agreement for the lease, from time to time, of the aircraft on august 30, 2011, and now.
Aircraft lease agreement, aircraft lease agreement. Whether youre the lessor or lessee, its imperative that you carefully read and discuss the terms of any lease agreement with your aviation. Generally however, dry lease arrangements are not well understood by business aircraft owners. Boeing 777222 aircraft lease agreement united air lines inc. Leasing of an aircraft without the crew is considered to be a dry lease. Some, who have explored the intricacies of aviation, know that airlines sometimes lease aircraft, instead of buying them. This is an aircraft only solution, without crew, maintenance, or insurance. A community air carrier wet leasing aircraft registered in a third.
This document is provided for your reference when formalizing your aircraft lease. Business aircraft dry lease best practices nbaa national. Nonexclusive aircraft dry lease agreement this nonexclusive aircraft dry lease agreement this lease is made effective as of the leasedate, by and between lessorcompany, a lessorcotype. The aircraft and the crew must absolutely be separate and distinct. Unfortunately, aircraft owners and operators are frequently confused about the difference between a wet lease and a dry lease. The reference to a dry lease means that the aircraft. Aircraft dry lease agreement sample contracts and agreements. Lease tender document for airbus a321 aircraft for the. An aircraft dry lease agreementthink you dont need one. Dry lease agreement an agreement between undertakings pursuant to which the aircraft is operated under the aoc of the lessee. An arrangement whereby the lease of an aircraft is without crew pilot in command, second in command, flight attendant, etc. Section 4043c4 defines drylease aircraft exchange as an agreement, documented by the written program agreements, under which the fractional program aircraft are available, on an as needed basis without crew, to each fractional owner. The following aircraft are available for immediate acmi, wet lease, dry lease or sale. A lease means an agreement in respect of the operation of an aircraft that.
An aircraft lease can be wet or dry, depending on whether it includes maintenance and crew. In india, the stamp duty rates vary from state to state. Aircraft leasing operations, depending on the application, may involve any. Raaverige, male 20345, republic of maldives requires one aircraft on dry lease basis with the following terms and conditions. This aircraft dry lease agreement lease is entered into effective as of february 16, 2011, by and between sterling aviation llc, a new york limited liability company with an address at 340 crossways park drive, woodbury, new york 11797 lessor, and csc transport, inc. Wet lease means any arrangement whereby lessee agrees to furnish the. This commercial lease may not be suitable for charities as tenant or landlord, agricultural leases or a lease granted under the provisions of the leasehold reform, housing and urban development act 1993.
Whereas, lessee desires to lease the aircraft under such terms and. However, it is possible to extend this dry lease period for up to a further five months, totalling a maximum of 12 months for the dry lease agreement. Noncommercial operators can make their aircraft available to third parties via nonexclusive dry leases, but tax, insurance and other considerations can be complex. The practice of leasing can raise potential safety and economic issues in a situation where th. Dry lease definition of dry lease by the free dictionary. Aircraft operating lease agreement 2 van bortel aircraft, inc.
Aircraft dry lease agreement lease agreement free search. All legal documents should be kept in a safe location such as a fireproof safe or safe deposit box. This document governs the relationship among all fractional owners in the program. The club has exclusive use of the aircraft during the lease, thus the owner will not enter into any other use agreement for the period of this lease. Dry lease means a lease where the lessor does not provide, either directly or.
If aviation is in your future, youre likely wondering about the best options for sale and storage. Ac 97b truth in leasing federal aviation administration. With nonexclusive leases, the owner can furnish the aircraft to more than one lessee during the same lease term, with operational control switching between the lessor and each lessee on a flightbyflight basis. Jul 04, 2012 a dry lease enables an aircraft owner to legally earn revenue by allowing an entity to use the aircraft through a contractual agreement. We have millions of legal documents and clauses that you can search for free. Wet lease is defined as a lease agreement in which the aircraft and flightcrew from one air carrier lessor is leased to another air carrier. We provide above average aircraft for lease within the 50. Discrepancies with these procedures and best practices that can form the basis for improving these procedures will. Sometimes aircraft owners will lease their aircraft to maximize the use of the aircraft and to recover some of their expenses. An aircraft dry lease agreement think you dont need one. Under a dry lease, operational control resides with the lessee, and the lessee is permitted to operate the aircraft in furtherance of its business under part 91. Whether a lease is a dry lease or a wet lease has different implications for purposes of federal aviation regulations fars 14 c. This lease sets out the specific terms including a description of the aircraft, term of the lease and the rental amounts paid under the lease. Sham dry lease would be an example of someone trying to confuse the issue as to who has control of the aircraft.
In both cases the plane and the crew are too closely connected. Guidance material and best practices for aircraft leases iata. Type of aircraft leasing in which the lessee arranges and pays for the crew, fuel, and maintenance. After a dry lease period of 12 months, at least 5 months should elapse before making another dry lease application for the aircraft. This could be a winwin opportunity for both of you. In addition, terms like wet lease, dry lease or damp lease agreement fluctuates around aviation news sites. Under a dry lease we provide an aircraft that you operate on your own air operators certificate aoc and registration. Aircraft operating lease agreement 2 van bortel aircraft. Complete 207 support available please feel free to contact robert rob goethals with any 207 questions. Use them as aircraft lease agreement samples, aircraft lease agreement templates, competitive intelligence, drafting documents or to get information about transactions within a particular industry or sector. The leased aircraft ought to have a valid certificate of. Under a dry lease, operational control resides with the lessee, and the lessee is permitted to operate the. These example aircraft lease agreements are actual legal documents drafted by top law firms for their clients.
Aircraft leasing procedures manual 3 applicant should be referred to the division or section where the delay has occurred. Aircraft lease agreement this aircraft lease agreement is between an airline or aircraft owner and a company or individual who desires to lease an aircraft. Rental agreement terms of aircraft use and rental agreement this agreement the agreement is entered into between hampton airfield flight school hafs, with its principal place of business located at 9a lafayette road, north hampton, new hampshire 03862, and. Dry leases, and the rates lessees pay, can be defined on a monthly, daily or even hourly basis. The difference between wet leasing and dry leasing. Lessee agrees that its lease operations shall not exceed four hundred seventyfive 475 flight hours during any twelve 12 month period without the consent of lessor. Whats the difference between a wet and dry aircraft lease. Use them as aircraft lease agreement samples, aircraft lease agreement templates.
Your commercial lettingbusiness lease will be customised for england. Generally there is a provider, which provides the support services, and a customer, which may be the aircraft owner or a dry lessee of the aircraft. Aircraft lease agreement legal agreements realdealdocs. Registration of aircraft operation of foreign aircrafts on dry lease requires registration of aircraft in india. A wet lease is typically used when the owner or lessor is an airline or a leasing company that has some expertise operating aircraft. How does aircraft leasing work aircraft leasing explained. Providing a crew along with the aircraft makes it a wet lease, and if its a wet lease, the faa requires a commercial certificate unless specifically authorized otherwise. Typically, the aircraft can be leased hourly, monthly or annually. The practice of leasing can raise potential safety and economic issues in a situation where th e leased aircraft is registered in a state other than. Leasing of an aircraft without crew is considered to be a dry lease. This document is intended as a guide to creating an aircraft lease agreement for your club. And if youve spent any time around a hangar, youve likely heard the terms dry leasing and wet leasing. There are many situations in which an operator may want to make its aircraft available to a third party. In order to be able to fly the aircraft during the lease, the lessor must become a memberof the club and agree to follow all club rules.
Under a dry lease of an aircraft the lessor provides the aircraft and the lessee supplies his or her own flight crew, retains operational control of the flight and may operate under far part 91. They are used successfully for many purposes, including as a way to maximize the use of a business jet by multiple related entities or as a way for aircraft owners to offset the ownership costs of an underutilized aircraft. Wet lease agreement an agreement between air carriers pursuant to which the aircraft is operated under the aoc of the lessor. Amended and restated master aircraft dry lease agreement. An aircraft purchased under the flyaway exemption can be used in texas within the first year, as long as it is predominantly used outside of texas for that first year. The easiest way to share a corporate jet with another company or individual is a time sharing agreement under part 91. Natalie appleton march 20, 2012 at stratos jet charters, we know the aviation industry and specifically the world of private jet charter can be tough for a typical customer to understand. Iaca proposal dry leasein of third country aircraft v2. A customer may also be referred to in the agreement as an owner, client, operator, lessee or lessor, depending on the circumstances of the structure.
A lease involving aircraft is sometimes referred to as a wet lease or a dry lease. If you need any other aircraft or further info please contact avibroker sales dept. A dry lease of an aircraft is one in which the owner provides the aircraft and the lessee supplies his or her own flight crew and retains operational control of the flight. Some of us might not even have heard of leasing companies before. Apr 01, 2017 sometimes aircraft owners will lease their aircraft to maximize the use of the aircraft and to recover some of their expenses. Such an agreement is a lease of the aircraft with crew, but the reimbursement is limited to double the cost of fuel plus the flight specific expenses. Aircraft leasing procedures manual 2 following the procedures set out in this manual should ensure a consistent approach, nationally, to administering aircraft leasing transactions. Leases generally take the form of dry lease lease of an aircraft without crew and wet lease lease of an aircraft with crew. Usually this can be accomplished via a nonexclusive dry lease. Dry lease is typically used by leasing companies and banks, requiring the lessee to put the aircraft on its own air operators certificate aoc and provide. This airlineairport lease and operating agreement as amended, modified or altered from time to time, the agreement is made and entered. A wet lease does not include a codesharing arrangement.