The Operational Divide: Dry vs. Wet Leases скачать в хорошем качестве

The Operational Divide: Dry vs. Wet Leases

Aviation lease types are first defined by the allocation of operational responsibility: • Dry Lease: The lessor provides only the aircraft. Full operational control rests with the lessee, who must place the aircraft on its own Air Operator's Certificate (AOC). These agreements are typically long-term, spanning 6 to 12 years, and require the lessee to provide all crew, maintenance, and insurance. Dry leases are ideal for operators with established infrastructure and long-term capacity needs. • Wet Lease (ACMI): The lessor provides the Aircraft, Crew, Maintenance, and Insurance (ACMI). A key feature is that the lessor retains operational control, operating the aircraft under their own AOC. Wet leases are typically short-term, ranging from a single flight up to about 18 months, suitable for temporary capacity needs like seasonal peaks. • The choice is a fundamental strategic trade-off: pay a premium for convenience (Wet Lease) or opt for lower direct costs in exchange for full operational control (Dry Lease). The Financial Framework: Accounting and Reporting The accounting treatment defines the distinction between Operating and Finance Leases: • Finance Lease (Capital Lease): These are long-term arrangements (typically 10 to 20 years) treated as financing. Substantially all the risks and rewards of ownership are transferred to the lessee, who accounts for depreciation • IFRS 16 & ASC 842 Impact: Since January 1, 2019, new international standards (IFRS 16 and ASC 842) have fundamentally redefined financial reporting. These standards require most leases to be recognized on the balance sheet by recognizing a Right-of-Use (ROU) asset and a corresponding lease liability. This shift eliminates nearly all off-balance-sheet accounting, providing a more transparent view of economic obligations, and compelling closer collaboration between financial and technical departments. We also touch upon specialized models like the Sale-Leaseback (SLB), a strategic structure where an owner sells an aircraft and immediately leases it back, gaining an upfront cash infusion and transferring residual value risks to the new lessor. -------------------------------------------------------------------------------- Don't miss out on the full program—please stay subscribed so you can follow this journey! -------------------------------------------------------------------------------- Disclaimer: This video is presented as the start of a training program and is intended solely for informational and instructional purposes, focusing on the critical expertise that underpins the modern aviation industry. -------------------------------------------------------------------------------- Connect with AEROPODA: info@aeropoda.com Get in touch over: www.edu.aeropoda.com -------------------------------------------------------------------------------- #AviationFinance #LeaseStructures #DryLease #WetLease #ACMI #IFRS16 #ASC842 #AviationTraining #FinanceLease #OperatingLease #AEROPODA