Leasing Agreement Wet Lease

Under the Civil Aviation Act, general water leases must be approved by the Directorate General, which is valid for up to six months before they can operate water-leased aircraft. The application must be submitted 30 days before the operational date in order to obtain the required authorization of all documents submitted to the Branch. 1- At the end of the lease, the purchaser has the opportunity to acquire the equipment. 2- Total rents represent more than 90% of the total market value of the equipment. 3- The duration of the lease covers at least 75% of the equipment`s useful life. As the discussion shows, wet leasing is, from the point of view of the business model, an opportunistic, flexible and competitive instrument, which acts as a temporary means of entering, changing or competing on certain routes. It allows for quick responses by using the assets of others and pooling assets and services. Under the Civil Aviation Act, operators of aircraft operators (whether a renter or a taker) are responsible for the accuracy and validity of aircraft leasing documents and for updating those documents. In the case of short-term water rental establishments, the technical, operational and administrative responsibility of the company during the lease phase rests with the owner of the wet rental vehicle, but the economic responsibility remains the responsibility of the taker. These provisions must be defined in the lease. Wet leasing is sometimes used for political reasons.

For example, EgyptAir, an Egyptian government company, cannot fly to Israel under its own name because of a well-founded Egyptian government policy. As a result, Egyptian flights from Cairo to Tel Aviv are operated by Air Sinai, which is leased by EgyptAir wet to bypass the political issue. [10] In addition, ground leases arrive with a crew working on behalf of an airline when we think again about capacity and money. When all the obligations and responsibilities mentioned in the operating licence are fulfilled, the owner of the leased aircraft becomes an operator. The training and competence of the crew, the maintenance of wet rental aircraft and all other responsibilities are assumed by the owner. The tenant assumes only responsibility for commercial matters that must be expressly admitted to the water lease. In addition, the number of aircraft leased by a given taker must not exceed the number of their fleets.