A wet lease contract, also known as an ACMI (aircraft, crew, maintenance, and insurance) lease, is a type of agreement that allows an airline to lease an aircraft along with its crew, maintenance, and insurance from another airline or aircraft leasing company.
In a wet lease contract, the lessor (the airline or leasing company) provides the lessee (the airline in need of the aircraft) with everything needed to operate the aircraft, including the flight crew, technical crew, and ground support staff. The lessor is responsible for the maintenance and repair of the aircraft, as well as for the insurance coverage.
Wet leases are commonly used by airlines for a variety of reasons. For example, an airline may need to increase its capacity temporarily to meet seasonal demand or to cover for unexpected maintenance issues. Rather than purchasing or leasing a new aircraft and hiring additional crew, the airline can lease an aircraft with all the necessary resources.
One advantage of a wet lease is that it provides flexibility to the lessee. The leased aircraft can be used for a specific period of time or for a specific route, depending on the airline`s needs. This can help airlines save money by avoiding the high costs associated with owning and maintaining an aircraft that is not needed on a permanent basis.
Another advantage of a wet lease is that it allows airlines to enter new markets or expand their route network without investing in the infrastructure required to operate in those areas. For example, if an airline wants to start flying to a new country, it can lease an aircraft with crew who are familiar with local culture, regulations, and airport procedures.
Wet leases are also beneficial for aircraft leasing companies because they can generate revenue by leasing out their fleet to other airlines. By providing aircraft, crew, maintenance, and insurance, leasing companies can offer a complete package that is attractive to airlines looking to expand their fleet without the additional costs of ownership.
In conclusion, a wet lease contract is a type of agreement that provides airlines with access to an aircraft, crew, maintenance, and insurance. It is a flexible option that can help airlines meet temporary demand or expand their operations without investing in the infrastructure required to operate in new markets. For aircraft leasing companies, wet leases are a way to generate revenue by leasing out their fleet to other airlines.