A growing idea that the business aviation world is embracing right now is leasing aircraft as a way for companies to get profits from private and also public airline travelers. Aircraft leasing embraces the idea of “renting” out aircrafts in order to fulfill some of the necessities that some find lacking in the normal commercial airline industry. Two of the main reasons for this are:
i) Avoiding the finances that are required in purchasing new planes. Leasing out a plane is a better option for companies that do not have enough resources to purchase a private plane that they want. Planes require quite an amount to purchase, thus leasing them would be the more sensible option.
ii) It poses as an option for excessive air travel for travelers who have the capacity to travel with private jets. This provides a better option for employees from having to fly commercially at airports that constantly are jammed with passengers.
There are two types of leases that are available in the market right now.
1. Wet Lease
When we speak of a wet lease, we will consider the share of responsibility that is given to the lessee as compared to what the owner of the plane provides. Here, the plane owner is responsible for the provision of fuel, airport fees, taxes that are involved in the flying process and the duties thereof. The lessee therefore provides the cabin crew, maintenance, the insurance that is required and also the pilot. It is usually used in the peak traveling seasons and usually lasts as short as two years.
2. Dry Lease
The dry lease usually lasts for a longer time than wet lease. In this type of a lease, the lessee takes care of more than what he does in the wet lease. The condition of the plane is subject to the maintaining power of the lessee, while at his hands. This type of lease is therefore useful for long term plans that involve big companies like airline companies, governments and banks.