Maintenance costs when leasing

Ceylon · **on:** April 27, 2008, 01:43:34 pm

ahh maybe dis has been discussed somewhere else.. but who pays for the maintenance when the plane is leased?? the leaser or leasee??

CHR · **Reply #1 on:** April 27, 2008, 01:47:01 pm

I think it is the owner of the plane that pays for maintenance. The person leasing the plane pays for fuel, flight costs, staff, gates, miscellaneous expenses etc.

Seattle · **Reply #2 on:** April 27, 2008, 04:04:18 pm

Shoulnt the lesser pay for the maintainance costs?

Cheung Airlines · **Reply #3 on:** April 27, 2008, 04:06:51 pm

In fact, it should

dktc · **Reply #4 on:** April 27, 2008, 04:13:36 pm

We know, we know.

Right now, we are looking at changing that, in conjunction with the changes to leases (penalty for early return, dry lease, wet lease... etc.). Don't expect them to come anytime soon. though

CHR · **Reply #5 on:** April 27, 2008, 04:15:05 pm

It makes sense that the owner of the plane maintains it. It is like renting a car, you pay for fuel etc. but the rental company takes care of the car. Maintenance is a long term thing, it is better to leave the maintenance with the owner so that only a single company is maintaining it, rather that lots of different companies rent it (planes may only be leased for a relatively short time).

Cheung Airlines · **Reply #6 on:** April 27, 2008, 04:22:41 pm

No company in the world will accept to pay for the maintainence fee for the plane that they've rented out.

CHR · **Reply #7 on:** April 27, 2008, 04:27:44 pm

They might agree to pay maintenance if they are getting a cheaper rental. The idea is, in theory, if maintenance is paid for by the renter, there will be a rental fee charged by the owner. However, in practise, it is likely people would not offer rentals any cheaper just because they don't have to pay maintenance.

CornField · **Reply #8 on:** April 27, 2008, 08:00:21 pm

It depends on the the particular contract...

D alludes to these agreements.. A dry lease is one where the lessor provides a plane and the lessee has all the responsbiilties of the aircraft. A wet lease is one where the lessor provides a plane completely ready to go, including crew. They also assume the other costs associated with the aircraft. The lessee pays the contracted rate. A so-called damp lease provides for an agreement with somewhere in the middle...

Technically all leases in AM are damp leases. The aircraft owner provides the aircraft and pays maintenence on it. The lessee pays all flight costs and crew expenses on the aircraft...

yourefired · **Reply #9 on:** April 27, 2008, 10:37:36 pm

So a dry lease is basically it's like you own the plane, but you don't.