Imagine being able to fly off to faraway destinations whenever you wanted. Think about how satisfying it would be to see the world on your term. The memories you could make and the incredible experiences you can have are limitless. The way to do that is by leasing an airplane.
What Does It Mean To Lease An Airplane?
Just like you would lease an apartment or a house, leasing an airplane essentially allows you to enjoy the feeling of having your own plane but on more manageable terms. Imagine you want to lease the apartment of your dreams. First, you get in touch with the apartment complex management company or owners and decide on the price. Then, you go to the bank and get a loan. With that are established terms in how long you will be paying back your loan and at what interest rate. Once the money is secure, you can get your new apartment. This is a similar process to lease an airplane.
When someone is looking to purchase an airplane, whether it’s an airline or a private pilot, they may not have the cash upfront to buy the plane in one transaction. They would then get a hold of an aircraft leasing company and state their desire to lease an airplane. From there, there are several differences that you should be aware of.
Wet, Dry, Or Damp – What Lease Should You Get?
Knowing what kind of lease you should get is one of the biggest hang-ups people can have in leasing an aircraft. There are three types of aircraft lease: wet, dry, or damp. Each of these can also be short-term or long-term. So, which is right for you?
With a wet lease, the leasing company would provide absolutely everything, including the aircraft, the pilots, and the cabin crew. They would also take care of maintenance and insurance. This can be a great option for smaller airlines or a private buyer with the money to do so who doesn’t want to hire a pilot every time they fly. This may also be a good option if you are buying a company jet that will get used regularly.
If you already have the crew and pilots to man your aircraft, you might consider a dry lease. With this, just the aircraft would be leased. It’s an excellent way for fledgling companies who already have the people to expand their fleet.
As the name would suggest, this is a mixture of a wet and dry lease. With this, the leasing company would provide the aircraft, pilot, insurance, and maintenance. The person leasing the aircraft would have to have the people in place to round out their flight crew. This provides a good middle ground financially between a wet and dry lease, assuming you already have the cabin crew available to you.
What You Need To Lease An Aircraft
Much of what you need in order to lease an aircraft depends on the type of plane you’re getting, the type of lease you’re getting, and your budget. First off, you need the money for a down payment and the means to continue paying your lease. Whether you’re a private pilot or an airline, you have to be able to follow the terms of your lease, just like you would a house. Having those in order before you buy will make a huge difference as you start the process of leasing an airplane.
Next, you have to have the space to keep your plane. There are small and large hangers in every city where you can rent space to store your plane. Along with that, you need to keep in mind that you will be spending money to fuel your plane, so the financial means to do that is something you should have in place ahead of time.
You may also need a flight crew, maintenance crew, and pilot, depending on your lease type. For example, as a private pilot leasing a small airplane getting a damp lease, you may not need anything more than your own training. However, if you’re leasing a larger plane, say to expand your airline fleet, and you have a dry lease, you’ll need to have the pilot and flight crew lined up to man your new craft.
Benefits Of Leasing an Airplane
There are several reasons to lease a plane, the first being the freedom to travel. If you already have your pilot’s license, the space to store an airplane, and wanderlust coursing through your veins, leasing a plane can open up the world to you, giving you the chance to see it as much as you’d like. Along with that, it can be a much speedier form of travel, so seeing family and friends can be much easier.
As an airline, leasing a plane is an excellent way to expand your fleet and do so quickly. Rather than budgeting for years and years before growing your airline, you can simply budget for the lease terms and make the leap now. It’s a fast and easy way to open up new routes and better serve your passengers.
If you’ve always aspired to owning your own airline, this is also the answer to every concern you might have. By leasing an airplane with a wet lease, you don’t even have to worry about the hassle of hiring your crew and pilots or figuring out the complicated world of aircraft insurance and maintenance. It’s all provided for you. This would allow you to jump start your airline dreams overnight, rather than spending possibly decades saving and researching. Simply pick your plane and your leasing company and you’re good to go.
Why not make 2021 the year you see the world and jump into the world of aircraft ownership? With an airplane lease, you can do it in a way that will feel familiar and won’t drain your life savings. Or maybe you’re an airline looking to use 2021 as the year you take your company to the next level. Lease your next plane and the sky’s the limit.