aircraft wet-leasing?

[pre3sg]

hello everyone,

could someone please be kind enough to give some values for wet-lease of aircraft and how wet-lease contracts operate. more specifically I'm looking for values for the A320 family. Do wet-lease contracts operate on a fixed price basis for a period of time or do they involove paying by the hour? I heard that to lease is typically 7-8% of the aircraft's total value - is this true?

any info would be greatly appreciated.

Cheers,

Scott.

[African Tech Rep]

I’m normally involved in the Tech bits of Dry Leasing – so the following is from dim and distant memory of the last time I was involved in a Wet one

Wet leasing is conducted by a few airlines as their core business and by some as a way of keeping the planes working during their quite periods – thus if your lucky you may find someone who’s real target is just to make “a little” but keep their crews and planes working – for this (and market forces) Lease Rentals can vary quite a bit.

You can expect a Monthly fee which includes X hours Y Cycles – do less than X or Y and often it’s your problem (no refund) – do more than X and there will be a hourly rate.
You may get a hourly / cyclic rate for the LG / Engines / Airframe as an additional fee to pay per hour – or it may be inc in the monthly – this is to cover the “loss of life” on these items – if it’s included in the monthly fee the fee will LOOK higher than if it isn’t – so care is need to add ALL costs up to get the REAL rate.

The lease will include provisions for Crew / Handling etc etc.

Many (Most) Lessors won’t talk to you seriously unless your “end user” or you have signed mandate from end user – if it’s the latter you can expect 90% of the Lessors to try and deal direct with them as soon as they find out who they are.

Speednews http://www.speednews.com/listings/jetindex.html have a few ad’s for Wet A320’s – if you have a reason for asking – like Uni project some will give you “clues” (ballpark figures) if you call / mail them.
If you are “end user” or have a mandate – have someone conversant with Leases read it – even a simply suitably placed "and/or" instead of "and" can make a MAJOR difference to your cost exposure.

You might also want to look at http://www.aircraftvalues.net/ - but to get access to useful info costs

Hope this helps a bit

[pre3sg]

cheers mate that help's alot. I can see myself cruising towards a first class honors right now..

Scott.

[wizo]

Can anyone explain to me the difference between 'wet' lease and 'dry' lease ?

[Grunf]

Simple explanation is that "Dry" is a/c only (your crew, maintenace and insurance).

Wet is with the crew.

ACMI covers all (a/c, crew, maintenance, insurance).

I guess there are more competent people to explain in details.

Cheers,

[wizo]

Thanks Grunf

I always thought that wet lease was short term, and dry lease was long term - guess I don't know that much !!