In a dry lease arrangement, an aircraft financing entity (lessor) provides an aircraft without crew, engineers, or ground staff. In this leasing model, an airline leases the aircraft from a leasing company or bank, excluding crew, maintenance, and insurance. The airline incorporates the aircraft into its own air operator's certificate (AOC), manages the aircraft registration, but employs its own flight and cabin crew to operate it.Several factors impact a dry lease agreement, including depreciation, maintenance, insurance, and the lessee's political and geographical location. Typically, a dry lease extends beyond two years.
For lessees, a dry lease proves to be a cost-effective option over an extended period as they avoid outsourcing costs associated with ACMI (Wet or Damp lease), such as crew (hotac & travel), maintenance, and insurance. By managing these aspects internally, lessees gain control over critical operational components. Our team of consultants offers robust financial solutions and strategic advice tailored to your business needs and the unique dynamics of the aviation industry.