Wet Lease Agreement

According to Philips Baggaley, managing director of one of the leading rating companies (Standard and Poor), airlines are usually short of fleet expansion and therefore buying an aircraft is usually not a viable option. Borrowing for the purchase of aircraft is also not a cheap option. This is the reason why rent and lease is becoming more and more popular in the aviation industry. (9) EC Roadmap for the introduction of unlimited lease agreements between the EU and the US through a hire-purchase agreement between the parties, page 7. In 2002, there were less than 100 aircraft leasing companies in the world and the two largest controlled more than 40% of the market share. Only seventeen years later, there are more than 150 suppliers, with the top two holding only 20% of the market share. Today`s aircraft lessors have more opportunities than ever in choosing an aircraft leasing partner – but not all offer the same level of expertise and value. When choosing an aircraft leasing provider, look for solid legal expertise, financial stability, a history of successful transactions, and an integrated approach to ensure your leased aircraft is operating at optimal performance. The term dry lease means the transfer of equipment from the owner to the tenant, but without maintenance, crew, insurance, etc.

Banks and leasing companies are usually involved in dry leasing. The aircraft registration and air operator`s certificate (AOC) must be provided by the lessee under a dry lease. A crewed lease is an agreement where the landlord agrees to provide the tenant with one or more cabin crew members. In addition, under this agreement, the lessor is also responsible for covering major maintenance work on the aircraft and for insurance that may be necessary for the operation of the equipment. The preferred solution, as stakeholders have repeatedly pointed out, is a lease agreement between the EU and the US, which would be fully compliant with the ATA and would not be contrary to national or European rules. Since January 2014, all issues relating to the details of such an agreement have been discussed. It can be expected that a consensus can be reached quickly. It agreed that such a technical agreement would be based on the ATA`s current traffic rights and would not create new rights or modify existing ones.

The Commission should make it clear that the amendment is not intended to modify, modify or add other traffic rights between the EU and the US. However, such an agreement would require an amendment to Article 13 of Regulation (EC) No 1008/2008, which sets a limit of 7 to 7 months for crewed hires of EU air carriers with crewed leasing of air carriers from non-European countries. The proposed wording fully reflects the requirement that Article 13 should apply only to the extent that the conditions set out in Article 13(b) are not otherwise provided for in an international agreement. Editor`s note: For the latest developments in this area, we refer to www.aopa.org/news-and-media/all-news/2020/march/pilot/for-the-record-who-is-in-control (February 2020) Jet operating leases accounted for less than 2% of the fleet in 1976, then 15% in the early 1990s, 25% in 2000 and 40% in 2017, with lessors being involved in 62% of used aircraft transactions since 2000: 42% in Europe and 29% in North America. [1] In 2015, more than $120 billion in commercial aircraft were delivered worldwide, and half of the world`s donors were based in Ireland. [2] Another reason airlines rent equipment is to help them expand their business. For example, PIA (Pakistan International Airlines) recently leased a few passenger planes to bolster its operations in the UAE and launch new flights between Pakistan and Europe. The company knew that these routes were profitable, but could not realize it due to the unavailability of the planes. .