In the case of a non-exclusive lease, the owner may issue the aircraft to more than one taker during the same rental period, with the operating management alternating between the owner and the taker. Dry rents and fees paid by the beneficiaries of the rental can be set monthly, daily or even hourly. A basic rule for deterrence of monthly payments is 1 percent of the value of the aircraft. Hourly rates are often set on the basis of the cost of the aircraft. “A common agreement is to lease an aircraft to a company for the operation of Part 91 and part of the 135 operators for the charter,” said Jeff Wieand, senior vice president and general counsel of Boston Jet Search. “These would not be exclusive dry leases.” One of the key issues that distinguishes a dry water lease is “who has operational control” within the meaning of 14 CFR 1.1. In a “wet” leasing situation, the owner retains operational control of all flights, as the leaseholder provides both aircraft and crews. In a “dry” rental situation, the tenant makes his own crew available and the tenant exercises operational control of his flights. 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. In a dry rental agreement, 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. Charter flights are widely regulated by the Federal Aviation Administration (FAA), pursuant to Title 14 of the Federal Bylaw Code, Part 135 (14 C.F.R. Part 135). To obtain an active charter certificate, an aircraft operator must comply with rules requiring a high level of aircraft maintenance, maintenance and operating procedures. For example, chartered aircraft are subject to certain runway length requirements at airports and can only perform instrument approaches to airports equipped with on-site weather detection systems. Restrictions such as this often make chartering a less preferred provision compared to a dry rental. Although there is no limit to the number of parts to which an aircraft can be leased, reflections are under way. A water leasing is a lease agreement whereby a company (the renter) provides an aircraft, a full crew, maintenance and insurance (ACMI) to another airline or another type of company acting as an air travel agent (the taker) that pays in hours worked. The tenant provides fuel and covers airport taxes as well as all other taxes, taxes, etc. The flight uses the tenant`s flight number.
Wet leasing usually lasts 1 to 24 months. Wet leasing is usually used during peak hours or during annual and heavy maintenance checks or to launch new routes.  A water-leased aircraft may be used to fly services in countries where the taker is no longer in service.  It can also be used to replace unavailable capabilities or to circumvent regulatory or policy restrictions. Leasing transfers ownership of the aircraft without transferring the title. A dry lease provides an aircraft, but the owner does not provide a crew. (A crew-indleced lease agreement is referred to as a “wet leasing” and requires an FAA commercial certificate, unless it has been expressly authorized under FAR 91.501 or FAR 91.321.) Sometimes aircraft owners will pay the price of their aircraft in order to maximize the use of the aircraft and recover some of their costs.