Wet Lease vs Dry Lease: What Operators Need to Know
A dry lease provides the aircraft only, and the lessee supplies crew and takes operational control. A wet lease provides the aircraft with crew, and often maintenance and insurance, and the lessor keeps operational control. The difference decides who is legally responsible for each flight.
Key takeaways
- Operational control is the key question, not the paperwork title.
- Wet leases are generally limited to operators certificated to carry passengers or cargo for hire.
- Leases of certain large U.S. aircraft need a truth-in-leasing clause under 14 CFR 91.23.
- Get aviation counsel to review any lease that involves crew.
How do wet and dry leases compare?
| Factor | Dry lease | Wet lease |
|---|---|---|
| What is provided | Aircraft only | Aircraft and crew, often maintenance and insurance |
| Operational control | Lessee | Lessor |
| Typical users | Flight schools, companies, operators with their own crews | Air carriers adding capacity |
Why does operational control matter?
The party with operational control is responsible for the flight: who flies, when, and under which rules. If a company provides an aircraft and crew to someone who pays for the flight, the FAA may treat it as a for-hire operation that requires an air carrier certificate. FAA Advisory Circular 91-37 explains these issues for leasing.
What is the truth-in-leasing rule?
Under 14 CFR 91.23, certain leases of large U.S.-registered civil aircraft must include a written statement identifying who has operational control, and copies must be sent to the FAA within set deadlines. It exists to prevent illegal charter.
How does this affect financing?
Most aircraft financing leases are dry leases: the lessor provides capital and the aircraft, and the operator provides everything else. Lenders will want the operating arrangement to be clear and compliant before they fund.
Aircraft Lease vs Finance Calculator
Total cost of leasing versus buying over the same term.
Frequently asked questions
What does ACMI mean?
Aircraft, crew, maintenance and insurance, a common form of wet lease between air carriers.
Can a flight school dry lease an aircraft?
Yes. Most flight school leases are dry leases, with the school providing instructors and operational control.
Sources
This guide is educational and is not tax, legal or investment advice. See our editorial standards and disclosures. Spot an error? Tell us.
