When an airline requires additional aircraft to meet the demands of their operations, it may consider a wet lease aircraft contract. A wet lease contract is an agreement between two airlines where one airline provides the aircraft, crew, maintenance, and insurance while the other airline pays a fee to lease and use the aircraft for a specified period.
Wet lease contracts can be advantageous for airlines that are experiencing rapid growth and need to supplement their existing fleet. It can also be helpful during unexpected disruptions, such as mechanical issues or crew shortages, where a replacement aircraft is needed quickly.
There are three main types of wet lease contracts: damp lease, wet lease, and ACMI lease. A damp lease is when an airline provides the aircraft and crew, but the lessee provides their own insurance and fuel. A wet lease is when the lessor provides everything, including insurance and fuel. An ACMI lease is the most comprehensive of the three, where the lessor provides the aircraft, crew, maintenance, insurance, and fuel.
While wet lease contracts can be helpful, they also come with some limitations that airlines should be aware of. One limitation is that the lessor typically has limited control over the aircraft`s schedule, as the lessee is using the plane for their own operations. This can make it challenging for the lessor to manage maintenance and schedules effectively.
Another limitation is that wet lease contracts can be costly, and the fees can vary depending on the aircraft type, location, and length of the lease. As such, airlines should carefully evaluate their needs and budget before entering into a wet lease contract.
In summary, a wet lease aircraft contract is an agreement between two airlines where one airline provides an aircraft, crew, maintenance, and insurance, while the other airline pays a fee to lease and use the aircraft. Wet lease contracts can be advantageous for airlines that need to supplement their existing fleet or during unexpected disruptions. However, they also come with limitations, such as limited control over the aircraft`s schedule and potential costliness. Careful evaluation of needs and budget is essential before entering into a wet lease contract.