Dry Lease Agreement Aircraft

Understanding the differences between dry rental, wet leasing and back leases is more than just choosing the option most suited to your business needs. Each lease has its own regulatory requirements and obligations. Since the Federal Aviation Administration (FAA) carefully reviews each agreement, it is important to consider all aspects of a lease before moving forward. We have an incredibly safe air transportation system in the U.S., but owning and operating an aircraft is not cheap. Added to this is the high level of public confidence in this system, which faces the desire to pay the lowest possible price for these flights, and conditions are ripe for a significant increase in operations, which the Federal Aviation Administration (FAA) considers an illegal charter – and the FAA has responded accordingly. They may also be considered chartered by the lessor who provides minimum operating services, including the ACMI, and where the lessor provides the service report as well as the flight numbers. For all other types of charters, the owner provides flight numbers. Variants of a wet framework lease include a code-sharing agreement and a bulk seat agreement. In the United Kingdom, a ground lease (AOC) of the renter is the case when an aircraft is operated in accordance with the Air Transport Operator Certificate (AOC). [15] An agreement in which the owner makes available the aircraft, flight crew and maintenance, but the taker provides cabin crew, is sometimes referred to as “damp-leasing,” a term used specifically in the United Kingdom. It is also sometimes referred to as “wet lease.” [8] In the United Kingdom, a dry lease is the case when an aircraft is operated under the aocular of the taker. [15] It may also be useful for the British lender to appoint a lease coordinator and an interlocutor with the foreign regulator to handle leases.

If the provisions of the Truth Act under 14 C.F.R. 91.23 apply to the lease agreement, the lease agreement should include a “lease” clause, be sent to the FAA within 24 hours of its execution and be transported at any time on board the leased aircraft. Parties should be diligent in verifying and complying with the Leasing Act and any other regulations applicable to dry-leases for aircraft. Charter air traffic is managed by the Federal Aviation Administration (FAA), in accordance with Title 14 of the Federal By-Law Code, Part 135 (14 C.F.R.