Airplane Leasing

sspan class="mw-headline" id="Market">Market[edit]

Aeroplane leasing contracts are leasing contracts used by airline and other aeroplane operating entities. Air carriers rent aeroplanes from other carriers or leasing carriers for two principal reasons: operating aeroplanes without the cost of purchasing them and temporarily increasing them. There are two major leasing categories in the industry: Wet leasing, which is normally used for short-term leasing, andry leasing, which is more common for longer-term leasing contracts.

If, for example, the aeroplane is rented in order to set up new facilities, the airline's crew or crew can be converted to a carry leases after training. Those who cannot reasonably expect to do business with company owned jets, or those who wish to retain greater operational flexibility, could opt to rent their planes under either an operational or financial leasing agreement.

It can also be regarded as a type of charters where the leaseholder provides minimal operational performance, ACMI included, and the remainder of the performance is provided by the charterer together with the flights numbers. The variants of a Wet Leasing contract comprise a codeshare contract and a unit seating contract. GECAS or AerCap, an airplane without crews, personnel on the ground, etc. is provided by an airplane finance company (lessor).

Saving the large carrier the cost of flight staff and maintenance staff costs as well as other costs (e.g. graduated trade unions, local air traffic control, etc.). The FedEx Express uses such an agreement for its feeders operation and commissions corporations such as Empire Airlines, Mountain Air Cargo, Swiftair and others to run its one- and twin-engine turbo-prop jets in the US.

In the United States, DHL has a US JV with Polar Air Cargo, a Atlas Air affiliate, to handle its home shipments. By the end of July 2015, the top 50 hirers were managing 8,184 aircraft: 511 turbo-prop regionals, 792 regionals, 5,612 narrow-bodies and 1,253 wide-bodys.

In 2017, the 150 leasing companies manage 8,400 planes with a value of 256 billion US dollars, of which 2,321 planes are in arrears of 28, with their market share stabilizing at 42.6%. Plane hirers are often bankers, hedge fund companies or finance institutes.