Damp Lease Agreement
The rents of the A320neo and B737 MAX 8 are $20 to $30,000 higher than those of their predecessors: by 2018, a B737-8 can be leased for just over $385,000 per month, and a 12-year term with good credit may be less than $370,000 per month for an A320neo (0.74% of its capital cost of about $49 million), which generates a turnover of $ 53 million and more than $ 8.5 million in compensation for the end of the maintenance-free lease agreement. and is worth another $20 million.  Under an operating lease, the company leases an aircraft for a defined period of time. Leases of operations get liquidity from an airline. Leases are often used by new airlines that do not have the capital to purchase aircraft directly or the financial history to secure favorable credit terms. An operating lease can take between three and ten years (although leasing of wide-body aircraft can be longer). The cost of an operating lease is the sum of three factors: Introduction Short-term leases Short-term leases Short-term leases CommentAry A lease agreement in which the aircraft is made available plus at least one pilot. Under a hire-purchase agreement, the aircraft is normally operated under the lessor`s AOC. 4. Seasonal changes — for the summer they need more planes, while for the winter, the same plane would be idling.
Therefore, the airline uses a short-term lease to cover its seasonal operations. Wet leases are sometimes used for political reasons. For example, EgyptAir, an Egyptian government company, cannot travel to Israel under its own name due to Egyptian government policy. Therefore, Egyptian flights from Cairo to Tel Aviv are operated by Air Sinai, which hates EgyptAir wet-lea to get around the political problem.  The main advantage of wet-leasing is flexibility. Depending on availability, leasing can be started quickly – and immediate capacity needs are met. c) The rental period includes at least 75% of the useful life of the equipment The lessor provides the aircraft and sometimes the services of the cabin crew. This crew may include cabin crew, engineers, etc. The owner can even bear his monthly salaries, but the daily allowance is not covered. The airline does not have enough money to suddenly start operations and buy new aircraft, recruit new crew members and maintenance personnel. So what they do is contact a leasing company and order rentals. They are short-term, as they wouldn`t need so many planes during the winter months.