Understanding Wet Lease
Wet lease refers to a contractual agreement between a leasing company and another company, where the former provides the latter with an aircraft, crew, maintenance, and insurance. Under this arrangement, the lessee gains access to an aircraft without having to own or operate one, making it a viable option for airlines during peak seasons when they need to rapidly increase their fleet capacity.
With a wet lease, the lessor retains ownership of the aircraft and guarantees its airworthiness, while the lessee maintains flight control, operations, and scheduling. This allows the lessee to focus on serving their customers, without having to concern themselves with the technical aspects of aviation. The lease usually runs for a predefined period and is subject to renewal.
Furthermore, wet lease is different from code sharing. Code sharing is an arrangement between two airlines where they sell seats on each other’s flights, but one airline operates the flight. This arrangement allows airlines to expand their networks and provide passengers with a broader range of destinations.
Overall, wet lease is a cost-effective solution for airlines looking to expand their fleet capacity, reduce cost, and increase flexibility. It also benefits leasing companies that earn income by leasing out their aircraft and provides experienced pilots with career opportunities.
« Back to Glossary Index