Dry Lease vs Wet Lease: What’s the Difference?

Published January 28, 2025

The aviation industry depends greatly on various leasing arrangements to keep flights operating smoothly without requiring full aircraft ownership. Two key leasing options are dry leases and wet leases.

Understanding how they differ is vital for stakeholders such as airlines, operators, and financial partners. Below, we break down the distinctions, covering their definitions, benefits, drawbacks, and common applications.

What Is a Dry Lease?

A dry lease involves the lessor (owner of the aircraft) providing just the aircraft to the lessee (airline or operator). The lessee takes on all other responsibilities, like hiring crew, purchasing insurance, and managing daily maintenance.

Key Features of a Dry Lease:

• Leases the aircraft only, without any additional services.
• The lessee oversees maintenance and operational tasks.
• These agreements are typically long-term, lasting between two and eight years.

Benefits of a Dry Lease:

• Cost Savings: Airlines can reduce expenses by using their personnel and resources.
• Greater Operational Freedom: Lessees can manage flights according to their schedules and policies.
• Long-Term Option: Suited for carriers looking to expand their fleet for extended periods without purchasing new planes.

Drawbacks of a Dry Lease:

• Infrastructure: The lessee must have comprehensive infrastructure, including trained staff and maintenance facilities.
• Risks: The lessee must assume financial and operational risks.

Common Uses:

Established carriers commonly choose dry leases with the resources to handle their own crew, operations, and maintenance. It’s a practical option for airlines aiming to grow gradually without large upfront costs.

What Is a Wet Lease?

A wet lease, by contrast, provides not just the aircraft but also a full package of services. These include crew, maintenance, and insurance, making it a complete bundle for the lessee. Essentially, the lessor delivers a ready-to-operate aircraft.

Key Features of a Wet Lease:

• Includes aircraft, crew, maintenance, and insurance or ACMI.
• Typically used for short-term periods, ranging from a few months to two years.
• It is ideal for situations requiring quick fleet expansion or temporary solutions.

Benefits of a Wet Lease:

• Hassle-Free Operations: The lessee receives a fully operational aircraft without arranging for crew or maintenance.
• Rapid Fleet Expansion: Airlines can respond to sudden spikes in demand or disruptions with minimal preparation.
• Less Operational Responsibility: The lessor takes charge of key operational aspects, allowing the lessee to focus solely on operations.

Drawbacks of a Wet Lease:

• Expense: Including additional services makes this type of lease more costly.
• Limited Control: The lessee has less influence over flight operations and crew management.
• Short-Term Nature: It is best suited for temporary needs and doesn’t align well with long-term growth strategies.

Common Uses:

Wet leases are frequently employed by smaller carriers, new market entrants, and airlines dealing with unexpected situations like seasonal spikes or aircraft shortages. They also serve as a buffer during emergencies or while operators expand operational capacities.