Wet Lease Aircraft Agreement

Despite the bankruptcy of Air Berlin and Monarch Airlines, leased aircraft were quickly placed at “normal market rates” due to traffic growth due to growth in global revenue, as passenger-kilometres increased by 7.7% year-on-year until September 2017 and Airbus is having difficulty supplying A320neos due to delays in the supply of engines. [4] b) Total rents represent more than 90% of the total market value of equipment, which represented less than 2% of the fleet in 1976. then 15% in the early 1990s, 25% in 2000 and 40% in 2017, with owners having participated in 62% of quarantine aircraft transactions in the second half of 2000: 42% in Europe and 29% in North America. [1] In 2015, more than $120 billion worth of commercial aircraft were delivered worldwide, and half of the world`s owners were based in Ireland. [2] In a dry lease, the owner of the aircraft makes the aircraft available to the unmanned taker. Neither the lessor nor the taker must be in possession of an air carrier certificate, while an air carrier may be a lessor or a taker under a dry lease. With the aircraft rental market still in development, innovative models combine customers with tailored solutions tailored to their business needs. But if you`re thinking about aviation leasing, it`s important to start with the three predominant models: water rental, dry water rental and leasing. Wet leasing is sometimes used for political reasons. For example, EgyptAir, an Egyptian government company, cannot fly to Israel under its own name because of a well-founded Egyptian government policy.

As a result, Egyptian flights from Cairo to Tel Aviv are operated by Air Sinai, which is leased by EgyptAir wet to bypass the political issue. [10] Now the inevitable question – why an airline wants to rent an airplane. There are two main reasons for this. The airline leases the aircraft (unmanned, maintenance or insurance) to a leasing company, but uses its own flight and cabin crew to operate the aircraft. a) Rental fees. Typically set at I% of new aircraft costs per month (supply and impact of demand) According to Philips Baggaley, managing director of one of the best rating companies (Standard and Poor), airlines are generally short of cash when it comes to developing their fleet, so buying an aircraft is generally not a viable option.