Fort Lauderdale Aircraft Leasing Attorneys Negotiating the Best Lease Terms on Your Behalf
Airplanes are an expensive investment. Leasing is a viable option for airplane owners looking to expand their aviation businesses and do what they love—fly planes. Even large airlines reap the benefits of aircraft lease arrangements as sources show more than a third of all planes operated by airlines are leased so they can increase capacity when needed.
When an airplane acquisition isn’t an option for airplane owners, leasing is a great alternative. There are two types of leases to consider for an aviation operation: wet and dry leases. Aircraft leases carry conditions for both parties that are intricate and challenging to comply with. Airplane owners can rely on our international aircraft leasing lawyers with Aero Law Center to simplify the leasing process.
Airplane owners rely on our firm as our team is experienced in mitigating risks often found in the leasing process. We work with our customers to avoid potential liabilities that can harm their aviation businesses, resolve any disputes that arise during the lease agreement, and reach the best possible terms for all parties involved.
When airplane owners need a firm but fair aviation law firm, Aero Law Center is an industry go-to for aviation legal counsel and support. We are savvy negotiators and ensure the best lease arrangements for our clients.
Is Aircraft Leasing Beneficial?
Do you have thousands—even millions of dollars—to purchase an aircraft? Is your plan to turn your plane into a commercial business? Do you have an exit strategy if you no longer want an airplane?
The answers to these questions might indicate that an aircraft lease makes more financial sense than an aircraft purchase.
There are several clear benefits to leasing an airplane, starting with affordability and accessibility. For instance, there are no upfront costs—compared with an airplane acquisition—involved in leasing an aircraft. A lease deal results in more cash flow, allowing airplane owners to expand their business in new ways or pay down debt.
Accessibility is another plus for airplane owners. Under a lease agreement, airplane owners can utilize the airplane as often as needed or as agreed upon in the lease agreement. Leasing allows airplane owners to preserve capital, reinvest in other business areas, temporarily or rapidly scale with additional airplanes (and vice versa) and enjoy many other perks.
Flexible and profitable, leasing is an exciting business option for airplane owners. Contact Aero Law Center to get started with an aircraft lease agreement: 954-869-8950.
How Does Airplane Leasing Work?
A lease is a contractual obligation between an airplane owner and a lessee. The lessee might be a pilot or an airline looking to offer travel services. In an airplane lease, the lessee has permission to use the airplane as stated in the lease agreement and, in return, must make agreed-upon payments to the airplane owner.
The Federal Aviation Regulations (FARs) classify aircraft leases as either “dry leases” or “wet leases.” Attorneys with Aero Law Center can help facilitate a formal lease agreement between an airplane owner and lessee to protect both parties from liability.
Under a dry lease, for example, the aircraft owner agrees to provide only the airplane and no staff personnel to the lessee. This is considered a wet lease if one crew member is provided in the lease agreement. In this scenario, the lessee maintains operational control of the aircraft.
Airplane leasing can be a profitable avenue as plane rentals typically cost an hourly rate, ranging anywhere from $150 to $500 per hour, depending on the size of the aircraft and engine capacity of the airplane.
Our team is experienced in both wet and dry lease agreements. Contact Aero Law Center and schedule a consultation with our international aircraft leasing lawyers to get started: 954-869-8950.
What Should I Include in a Dry Lease?
A dry lease allows an airplane owner or airline to “rent” an aircraft without crew members. The lease agreement includes rental and operating terms both parties must follow. A dry lease affords the lessee operational control over the plane.
Lease arrangements can blur the lines between airplane owner and lessee, so it’s essential to have crystal clear guidelines and an enforceable contract written by an experienced aviation lawyer. Aero Law Center can facilitate a dry lease agreement with the following inclusions:
- Outline of parties involved, including the airplane owner (or another interested party) and the lessee
- Specific terms and exclusivity, including the duration of the lease
- A delivery and storage plan for the aircraft, including airplane usage restrictions, how and where the plane will be stored, and an inspection plan
- Payment arrangements between both parties
- Operational control and specifications regarding operational management for each flight, whether it’s the airplane owner or the lessee that “owns” control
- Expenses involved and responsibilities for the airplane owner, the lessee or both
- A maintenance plan outlining a schedule for inspections and preventative and general maintenance
- Insurance coverage and the parties responsible for liability and physical damage, as well as indemnification
Airplane owners and lessees can protect themselves with a credible lease agreement crafted by an experienced aviation attorney like Aero Law Center.
How Can an Aircraft Leasing Lawyer Assist?
Airplane owners that don’t have financing or upfront cash flow to acquire an airplane or expand their fleet should consider leasing as a solution. Aero Law Center helps novice and seasoned airplane owners lease an aircraft that fits their business or personal needs and budget.
Our team removes the guesswork related to aircraft leasing. We help airplane owners avoid pitfalls, eliminate the hidden legal liabilities found in the lease agreement process and ensure all parties comply. Overall, our legal counsel reduces the risk involved in aircraft leasing.
Aero Law Center is the right choice when you need quick and efficient legal support regarding aircraft leasing. For example, we help both parties outline airtight terms and conditions to protect themselves and their businesses. We explicitly outline the following:
- The party responsible for insurance of the aircraft
- The party responsible for an accident or injury on-board in a wet lease
- The party responsible for additional costs if the insurance policy coverage isn’t sufficient
- The party responsible for any damage to the aircraft by crew members in a wet lease
It’s important to create legal boundaries when leasing an aircraft. Aero Law Center ensures fair terms and a mutually-beneficial lease arrangement when representing our clients and their aviation businesses. To discuss aircraft leasing options, schedule a consultation to speak with any of our experienced aviation lawyers. Call: 954-869-8950.