Wet Leasing in Aviation: Insights from Emirates Incident

A recent incident involving an Emirates cargo aircraft at Hong Kong International Airport has sparked discussions about the practice of wet leasing in aviation. The Boeing 747-400, operated by Act Airlines on behalf of Emirates, veered off the runway, resulting in tragic fatalities. This event has highlighted the complexities and significance of wet leasing in the airline industry.

What is Wet Leasing?

Wet leasing refers to an arrangement where one airline leases an aircraft along with its crew, maintenance, and insurance from another operator. According to the International Air Transport Association (IATA), this type of lease is often referred to as ACMI, which stands for Aircraft, Crew, Maintenance, and Insurance. In a wet lease, the lessor retains operational control, and the aircraft operates under its own Air Operator Certificate (AOC). The lessee, in this case Emirates, pays a fee to utilize the aircraft for a specified period, which can range from weeks to months.

Difference Between Wet and Dry Leasing

Wet leasing is distinct from dry leasing, where an airline rents only the aircraft itself. In a dry lease, the lessee is responsible for operating the aircraft, including crew management and maintenance. Dry leases typically involve longer-term commitments, often spanning several years. Additionally, wet leasing should not be confused with damp leasing, which involves a wet-leased aircraft that includes a cockpit crew but lacks cabin attendants.

Benefits of Wet Leasing

Wet leasing offers airlines the flexibility to scale operations without the need for long-term commitments associated with owning and staffing a full fleet. This is particularly advantageous during peak travel seasons, special events, or unexpected aircraft groundings when airlines require additional capacity quickly. The process of acquiring new aircraft can take years, making wet leasing an immediate solution to meet fluctuating demand.

The Role of Wet Leasing in Cargo Operations

The cargo sector heavily relies on wet leasing due to the dramatic fluctuations in demand. Airlines like Emirates and other carriers in the Gulf Cooperation Council (GCC) utilize wet leasing to manage seasonal peaks in cargo shipments without the need for permanent fleet expansion. This practice is especially prevalent among Middle Eastern airlines, which often maintain supplementary wet-leased fleets to support their scheduled operations.

For example, Air Arabia has recently wet-leased four Airbus A320s until the end of the first quarter of 2026. Similarly, Emirates SkyCargo operates six wet-leased Boeing 747 freighters alongside its owned fleet, as reported in a January announcement. Gulf Air has also publicly targeted wide-body wet leases to facilitate growth amid fleet challenges.

The Aviation Ecosystem in Dubai

Dubai is a significant hub for aircraft leasing, hosting one of the largest aircraft lessors globally, Dubai Aerospace Enterprise (DAE). While DAE primarily focuses on dry leasing, supplying aircraft to over 170 airlines across 65 countries, it also provides advisory and asset management solutions that support wet-lease operators and lessees. The presence of DAE in Dubai offers regional airlines access to world-class leasing and financing options, allowing them to balance fleet utilization through a combination of long-term dry leases and short-term wet leases.

Conclusion

The recent incident involving the Emirates cargo plane has brought wet leasing into the spotlight, emphasizing its importance in the aviation industry. As airlines continue to navigate fluctuating demand and operational challenges, wet leasing remains a vital strategy for maintaining flexibility and efficiency. Understanding this practice can provide valuable insights into the complexities of modern aviation operations.

FAQs

What are the main advantages of wet leasing for airlines?

Wet leasing allows airlines to quickly scale operations without long-term commitments, providing immediate capacity during peak seasons or unexpected demand surges.

How does wet leasing differ from damp leasing?

Wet leasing includes the aircraft, crew, maintenance, and insurance, while damp leasing involves a wet-leased aircraft that has a cockpit crew but no cabin attendants.

Why do cargo airlines rely heavily on wet leasing?

Cargo airlines face significant demand fluctuations, making wet leasing an effective way to manage seasonal peaks without the need for permanent fleet expansion.

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