| Commentary

34 The dry lease

| Commentary

34 The dry lease

The terms of a dry lease are generally more substantial than those of a wet lease1 because the lessor is giving possession of the aircraft to the lessee, possibly for a period of many years. In particular, because the owner/lessor relies very heavily upon the residual value of the aircraft, a dry lease usually contains detailed insurance and maintenance provisions and strict requirements stipulating the condition that the aircraft must be in when returned to the lessor on termination of the lease.

Under a dry lease, the lessee is the operator of the aircraft for safety regulation2

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