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What Is Aircraft Wet Leasing? Why It Matters to Airlines and Passengers

Aircraft wet leasing supplies an airline with an aircraft and crew; ACMI also includes maintenance and insurance. Costs, control and approval depend on the contract and jurisdiction.
From TheFinanceBase Team4 min to read
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Aircraft wet leasing is an arrangement in which one company provides an aircraft and crew to another airline. In an ACMI lease, the package also includes maintenance and insurance. It gives an airline access to operating capacity without arranging every resource itself, but the contract, extra costs, operational-control responsibilities and regulatory approvals all matter.

What does aircraft wet leasing mean?

In a wet lease, the lessor—the company providing the aircraft—supplies the aircraft and crew for the lessee’s use. The term ACMI describes a package that includes aircraft, crew, maintenance and insurance. Australia’s Civil Aviation Safety Authority (CASA) describes a wet lease as supplying the aircraft and sufficient crew to operate the lessee’s schedule, including maintenance and insurance. CASA’s aircraft-leasing guidance notes that the actual terms vary by agreement.

“Wet lease” and “ACMI” are often used together, but the contract determines exactly what the lessor supplies and which costs or duties remain with the lessee. The label alone does not answer every operational or legal question.

How does a wet lease differ from a dry or damp lease?

Arrangement What is supplied Operational-control context
Wet lease / ACMI Aircraft and crew; ACMI includes maintenance and insurance. Other contract terms determine whether cabin crew or particular expenses are included. The FAA says the lessor typically exercises operational control in a wet lease. The agreement and applicable law determine responsibility in a specific case.
Dry lease Aircraft without crew. The FAA says the lessee typically exercises operational control in a dry lease.
Damp lease CASA describes an arrangement similar to ACMI in which the lessor supplies flight crew and the lessee supplies cabin crew if required. Not established as a universal rule; responsibilities depend on the arrangement and applicable rules.

The FAA’s general descriptions of operational control appear in its September–October 2023 Safety Briefing. It emphasizes that operational control is a legal responsibility, so parties should establish who actually exercises it rather than relying only on a lease label.

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Why do airlines use wet leases?

A wet lease can provide aircraft and operating crew for a limited period, helping an airline meet a schedule or add capacity without independently sourcing and integrating all those resources. In an ACMI arrangement, maintenance and insurance are part of the defined package. That can simplify some resourcing needs, but it does not make the arrangement automatically cheaper, safer, faster to arrange or more profitable than alternatives.

CASA describes ACMI agreements as normally short term. They can use a monthly charge, an hourly charge and a minimum number of hours. The contract may require the lessee to pay the monthly charge and minimum-hour costs even if the aircraft does not operate. There is no universal rate or total-cost comparison: the commercial result depends on the agreement and the costs left outside it.

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What costs and responsibilities can remain with the airline?

Even when the lessor supplies an ACMI package, the lessee may have substantial additional expenses. Depending on the contract, possible costs include:

  • Fuel.
  • Crew accommodation and ground transport.
  • Catering.
  • Airways, landing, parking and storage fees.
  • Local taxes and import costs.

The parties also need to document responsibility for matters such as operational control, continuing airworthiness, weight and balance, regulatory compliance, training, spares, maintenance equipment, parking, and airport and air-services charges. A careful cost review should distinguish the base monthly or hourly charges from minimum-use commitments and pass-through expenses.

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Why do regulatory rules and operational control matter?

Requirements depend on the operators, aircraft, route and jurisdictions involved. As one jurisdiction-specific example, EU Regulation (EC) No 1008/2008 allows a Community air carrier to have aircraft at its disposal through wet or dry lease, while setting prior-approval and other conditions for specified arrangements, including wet leasing an aircraft registered in a third country. The regulation’s text should not be treated as a universal checklist for leases elsewhere.

EASA’s March 2026 Easy Access Rules for Air Operations include requirements for covered third-country wet-lease-in cases, such as equivalent safety standards and an airworthiness certificate. The applicable approval path must be checked for the particular operation.

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Operational control is a separate but related issue. The FAA says the lessor typically exercises it in a wet lease, and warns that misrepresenting who exercises control can create safety and legal problems. That general guidance does not determine responsibility for every transaction; the parties must assess the agreement and governing rules.

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Is a wet lease the same as a codeshare?

No. A wet lease concerns the provision of an aircraft and crew; a codeshare concerns how a flight is identified or marketed. Under U.S. 14 CFR § 257.3, a code-sharing arrangement uses one carrier’s designator code to identify a flight operated by another carrier. The same section defines “long-term wet lease” for that regulation as an arrangement in which the lessor supplies aircraft and crew dedicated to particular routes and the lease lasts more than 60 days, or forms part of a continuing arrangement lasting more than 60 days. That threshold is specific to this U.S. rule, not a universal definition of wet leasing.

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What might passengers notice?

A wet-leased aircraft may operate a flight sold or scheduled by another airline. The operating company and the airline passengers recognize may therefore differ. In the United States, the Department of Transportation’s Bureau of Transportation Statistics says traffic and revenue classification depends on the type of service performed. Its guidance, issued January 24, 2003, gives the example of a wet-lease operator providing lift for another carrier’s scheduled passenger service and classifying the traffic as scheduled-service traffic. This is a reporting rule example, not a complete statement of passenger-disclosure requirements.

For an airline evaluating a wet lease, the practical questions are what capacity and services the contract actually provides, which expenses and duties remain outside the package, who exercises operational control, and which approvals apply to the specific route and aircraft.

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