the Operations Regulation states that:
‘Direct cost’ means the cost directly incurred in relation to a flight, e.g. fuel, airfield charges, rental fee for an aircraft.
It should be noted that the sharing of annual costs is not permitted under this arrangement. ‘Annual cost’ means the cost of keeping, maintaining and operating the aircraft over a period of one calendar year.
There appears to be a contradiction here! Anyone leasing an aircraft would seek to cover the cost of operating the aircraft i.e the dry rental rate will be based upon a proportion of the "Annual cost"and therefore does not constitute a Direct Cost!