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ACMI

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

Wet and dry leases differ chiefly in whether crew is supplied, but operational control, the contract, and jurisdiction determine how an aircraft lease is treated.

By TheFinanceBase Team 4 min read
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A wet lease provides an aircraft with at least one crewmember; a dry lease provides the aircraft without crew. But the distinction that matters when an aircraft is operated is not just who supplies the crew: it is who has operational control—authority over whether and how a flight is initiated, conducted, or terminated. The rules depend on the jurisdiction and the actual arrangement, not simply the name on the contract.

Wet lease vs. dry lease at a glance

Comparison Wet lease Dry lease
Crew Aircraft plus at least one crewmember under the FAA definition. FAA General Aviation Dry Leasing Guide (2021) Aircraft without crew under the FAA definition. FAA General Aviation Dry Leasing Guide (2021)
Common airline shorthand Often described as ACMI: aircraft, crew, maintenance, and insurance. The contract determines the actual services and obligations. European Commission merger decision M.9062 The aircraft is supplied without crew; the agreement must be checked for other services and responsibility allocations. FAA General Aviation Dry Leasing Guide (2021)
Operational control in FAA guidance Generally associated with the lessor/operator retaining operational control, subject to the facts and applicable rules. FAA General Aviation Dry Leasing Guide (2021) A properly structured dry lease may allow the lessee to conduct its own flights under U.S. Part 91, if applicable requirements are met. FAA General Aviation Dry Leasing Guide (2021)
General U.S. operating-rule discussion FAA guidance says wet leases generally must be operated under Part 135. This is U.S. guidance, not a universal rule. FAA General Aviation Dry Leasing Guide (2021) FAA guidance describes Part 91 as a possible framework for a properly structured dry lease. This is not a conclusion about every lease or jurisdiction. FAA General Aviation Dry Leasing Guide (2021)

What does operational control mean?

In the U.S. Federal Aviation Regulations definition quoted in the FAA guide, “Operational control, with respect to a flight, means the exercise of authority over initiating, conducting or terminating a flight.” In practical terms, the parties need to identify who has authority and responsibility for the operational decisions involved in a flight. Those responsibilities can include pilots, scheduling, maintenance, fuel, insurance, and flight following; the relevant allocation depends on the arrangement and applicable rules. FAA General Aviation Dry Leasing Guide (2021)

For a lessee, the important question is not merely whether it pays for an aircraft or chooses a destination. Review the agreement and actual operating practices to determine who can initiate, conduct, or stop flights and who carries the associated responsibilities. In the United States, FAA Advisory Circular AC 91-37B, “Truth in Leasing,” addresses operational control and clarity of responsibility for U.S.-registered aircraft. The FAA says truth-in-leasing requirements apply by regulation to aircraft weighing more than 12,500 pounds. FAA Advisory Circular AC 91-37B

What does ACMI mean?

ACMI stands for aircraft, crew, maintenance, and insurance. It is common airline shorthand for a wet-lease service bundle. It should not be treated as a universal legal definition of a wet lease: under the FAA definition, the core distinction is that a wet lease includes at least one crewmember, while the contract and applicable rules determine what else is supplied and who is responsible for the operation. European Commission merger decision M.9062 FAA General Aviation Dry Leasing Guide (2021)

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How U.S. and EU rules differ

United States

FAA guidance discusses wet and dry leases in relation to U.S. operating rules: wet leases generally must be operated under Part 135, while a properly structured dry lease may permit the lessee to conduct its own flights under Part 91. The guide is general guidance; whether a specific operation qualifies depends on its facts and applicable requirements. FAA General Aviation Dry Leasing Guide (2021)

European Union

EU lease-in requirements are distinct from the U.S. framework. Under Regulation (EU) No 965/2012 and EASA’s Easy Access Rules for Air Operations, Revision 24 (March 2026), a third-country wet lease-in requires the applicant to demonstrate specified conditions, including a valid air operator certificate (AOC) and equivalent safety standards. For certain third-country dry lease-ins, the rules include an operational-need condition that cannot be met by leasing an EU-registered aircraft and a limit of seven months in any 12 consecutive months. These are specific EU conditions, not global norms. Regulation (EU) No 965/2012, consolidated 22 February 2026 EASA Easy Access Rules for Air Operations, Revision 24 (March 2026)

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Can a dry lease actually be a wet lease in disguise?

Yes. In the United States, the FAA warns that an arrangement can be a “sham dry lease” if the parties effectively provide both the aircraft and crew, even if separate agreements or a dry-lease label are used. The contract and how the operation works in practice both matter. Misclassification can raise operating-rule concerns, so anyone considering an aircraft operation under a lease should get transaction-specific advice from a qualified aviation attorney and relevant regulator. FAA, Pilots, Owners, and Operators (updated June 22, 2026) FAA General Aviation Dry Leasing Guide (2021)

Is a dry lease the same as charter?

No. A dry lease supplies an aircraft without crew; under FAA guidance, a properly structured arrangement may allow the lessee to conduct its own flights under Part 91. A wet lease supplies an aircraft with at least one crewmember, and FAA guidance generally associates it with Part 135 operations. The label alone does not determine the treatment: the actual arrangement, operational control, and jurisdiction matter. FAA General Aviation Dry Leasing Guide (2021)

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Which lease costs less?

There is no reliable universal answer. The available sources establish differences in services and responsibilities, not comparable prices. Cost depends on factors such as aircraft type, duration, services included, operating context, and contract terms; compare current, like-for-like quotes rather than assuming that one format is always cheaper.

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What to check before signing or operating

  • Identify the jurisdiction and rules. U.S. FAA guidance and EU lease-in conditions are not interchangeable.
  • Confirm the crew arrangement. In the FAA definition, a wet lease includes at least one crewmember and a dry lease does not.
  • Pin down operational control. Establish who can initiate, conduct, or terminate flights and who is responsible for operational elements.
  • Compare the contract with actual practice. Separate documents or a “dry lease” label do not settle whether the arrangement effectively bundles aircraft and crew.
  • Get transaction-specific advice. A lease’s regulatory treatment depends on its facts; consult qualified aviation counsel and the relevant regulator before operating.

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