WET LEASE Meaning and
Definition
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A wet lease, in the context of aviation, refers to a contractual agreement where an aircraft or its crew is leased out to another party along with the required maintenance, insurance, and operating costs, thereby providing a complete package of services. This arrangement is typically employed by airlines or aircraft operators to fulfill their temporary or long-term capacity requirements, without having to invest in acquiring and maintaining additional aircraft.
Under a wet lease, the lessor usually retains ownership of the aircraft while transferring its operational control and use to the lessee. The lessee, in turn, assumes all responsibility for the flight operations and bears the associated costs, such as fuel, crew salaries, landing fees, and other operational expenses. Additionally, the lessor may also include provision of the necessary flight crew, ensuring compliance with safety regulations and maintaining the required licenses and certifications.
Wet leases are commonly used during peak travel seasons, route expansions, or in cases of primary aircraft maintenance or unscheduled grounding. This flexible arrangement allows airlines to temporarily increase their fleet size, launch new routes, or bridge capacity gaps while benefiting from the operational expertise and support offered by the lessor.
By entering into a wet lease agreement, both parties benefit from cost-sharing, reduced financial risks, and increased operational efficiency. However, it is essential for both the lessor and lessee to clearly document the terms and conditions of the lease, as well as regulatory compliances, insurance coverage, and liability responsibilities, to ensure a smooth and mutually beneficial business relationship.
Common Misspellings for WET LEASE
- qet lease
- aet lease
- set lease
- eet lease
- 3et lease
- 2et lease
- wwt lease
- wst lease
- wdt lease
- wrt lease
- w4t lease
- w3t lease
- wer lease
- wef lease
- weg lease
- wey lease
- we6 lease
- we5 lease
- wet kease
- wet pease
Etymology of WET LEASE
The word "wet lease" is a term used in the aviation industry to describe an arrangement where an aircraft (with crew, maintenance, and insurance) is leased to another airline or organization. The term originated from the separating of leases into "dry lease" and "wet lease".
The term "lease" is derived from the Old French word "laes", meaning "gathering or collecting". Over time, it evolved to refer to the granting of possession or use of property or equipment for a specified period in exchange for payment.
The distinction between "dry lease" and "wet lease" emerged in the 20th century. A "dry lease" is an agreement where an aircraft is leased without any operational support or crew, essentially a bare aircraft rental. Originally, it referred to leasing an aircraft without any fuel included, hence it being "dry".
