Dry Lease Aircraft: How It Works, Contract Essentials and Comparison with ACMI 

In today’s volatile aviation market, airlines seek flexible solutions to scale their fleets quickly while managing capital expenditure. Over 50% of commercial aircraft worldwide are now operated under some form of lease rather than direct ownership. Among these, the dry lease aircraft remains a specialized yet increasingly strategic tool for airlines and startups. 

Unlike ACMI or wet lease arrangements, a dry lease involves renting an aircraft without crew, placing full operational responsibility with the lessee under their own Air Operator Certificate (AOC). This model appeals to carriers testing new routes, expanding capacity, or optimizing capital deployment. 

This article provides a comprehensive guide for airline decision-makers, covering dry lease operations, regulatory requirements, contract structure, pricing, and strategic positioning relative to other leasing models. 

What is a Dry Lease (Aircraft Without Crew)? 

Definition and Scope 

A dry lease is a leasing agreement where the lessor provides only the aircraft, while the lessee assumes: 

• Cockpit and cabin crew  

• Operational maintenance  

• Insurance coverage  

• Commercial operations  

• Regulatory compliance  

The aircraft operates entirely under the lessee’s identity and responsibility. Unlike ACMI leases, where the provider controls operations, the dry lease is fundamentally a financial and strategic arrangement rather than a short-term operational solution. 

Dry Lease vs Wet Lease vs ACMI: Comparison Table 

For a deeper understanding, see Avico’s dedicated guides on ACMI and wet lease operations:
https://www.avico.com/actualites/article-location-acmi/ 

Who Uses Dry Lease and Why? 

Primary users include: 

• Established airlines seeking fleet growth  

• Startups with an AOC  

• Charter operators expanding capacity  

• Regional carriers launching new routes  

Key motivations: 

• Rapid fleet expansion  

• Market testing before long-term investments  

• Temporary replacement of grounded aircraft  

• Optimized financial and operational flexibility  

In a post-pandemic context, dry leasing offers a strategic lever for airlines prioritizing agility over ownership. 

Regulatory Requirements for Dry Lease 

AOC Requirement 

A valid Air Operator Certificate (AOC) is mandatory. The certificate ensures that the operator has: 

• Certified operational organization  

• Qualified crews  

• Safety management systems  

• Compliance with international aviation standards  

Without an AOC, a dry lease is legally impossible. 

EASA Part-AOC Framework 

In Europe, dry leasing falls under EASA Part-AOC, which governs: 

• Full operational responsibility of the lessee  

• Supervision by national aviation authorities  

• Crew compliance and aircraft airworthiness  

• Integration of the leased aircraft into the lessee’s fleet management system  

This regulatory requirement makes dry lease a solution reserved for structured, certified operators. 

Aircraft Registration Transfer 

Depending on jurisdiction, the aircraft may: 

• Retain its original registration  

• Be temporarily re-registered under the lessee  

Steps include: 

• Aviation authority validation  

• Airworthiness certificate adjustment  

• Insurance updates  

The process can take several weeks, requiring operational foresight. 

Dry Lease Contracts: Key Points 

Typical Contract Duration 

Dry leases are medium to long-term commitments: 

Unlike ACMI, dry leases are structured agreements that support strategic growth. 

Maintenance Obligations: CAMO and Part-145 

Lessee airlines handle all maintenance, which includes: 

• Airworthiness management via approved CAMO  

• Maintenance performed by Part-145 organizations  

• Full technical oversight of the aircraft  

Operational costs must be factored into financial planning. 

Financial Guarantees and Security Deposits 

Contracts typically include: 

• Security deposits equivalent to several months’ lease  

• Bank guarantees  

• High liability insurance coverage  

These measures protect the lessor against operational risks. 

Aircraft Return Conditions 

Upon contract completion, the aircraft must be returned: 

• In line with original technical standards  

• With agreed engine cycles and maintenance status  

• Following a full technical audit  

Proper return ensures compliance and protects lessee and lessor interests. 

Why Choose Dry Lease Over Purchasing? 

Financial Flexibility 

Purchasing an aircraft is capital-intensive. Dry lease allows: 

• Avoiding large upfront investment  

• Preserving cash flow  

• Maintaining favorable financial ratios  

This flexibility is critical for growing airlines and startups. 

Route Testing Without Long-Term Commitment 

Before launching a new route, airlines can: 

• Assess market potential  

• Adjust capacity quickly  

• Withdraw the aircraft if necessary  

This approach mirrors strategies used in ACMI or short-term charters:

https://www.avico.com/actualites/affreter-un-avion-de-ligne-mode-demploi-complet-pour-2025/ 

Access to Specific Aircraft Types 

Dry lease enables temporary access to aircraft tailored to: 

• Cabin upgrades or configuration changes  

• Short-field performance requirements  

• Fuel-efficiency optimization  

It provides operational flexibility without the complexity of purchasing. 

Indicative Dry Lease Pricing 

Monthly Lease Ranges 

Excludes crew, maintenance, and insurance costs. 

Factors Affecting Lease Rates 

• Aircraft age and engine cycles  

• Cabin configuration  

• Maintenance history  

• Global leasing market demand  

• Contract duration  

Long-term agreements often allow more competitive rates. 

Avico and Dry Lease: Global Expertise 

Since 1996, Avico has supported airlines and charter operators with fleet strategy through a worldwide network of lessors and investors. 

Expertise includes: 

• Sourcing available aircraft  

• Contract negotiation  

• International regulatory coordination  

• Technical and operational support  

This approach enables rapid identification of suitable opportunities, even for urgent requirements. 

Explore Avico’s full leasing services: https://www.avico.com/offre/acmi/
Request a personalized dry lease quotation: https://www.avico.com/devis/ 

FAQ: Dry Lease Aircraft 

Can an airline without an AOC sign a dry lease?

No. Dry lease requires a valid AOC as the operator assumes full operational responsibility. 

Who handles maintenance in a dry lease?

The lessee manages maintenance through approved CAMO and Part-145 organizations. 

What is the minimum dry lease duration?

Typically, three months minimum, though some aircraft may have exceptions. 

Can Avico source a dry lease aircraft urgently?

Yes. Avico’s international network enables rapid access to available aircraft by type. 

Difference between dry lease and power by the hour?

Dry lease has a fixed monthly rate; Power-by-the-Hour (PBH) is variable, based on actual flight hours. 

Conclusion 

Once reserved for large airlines, dry lease aircraft has become a strategic lever for carriers seeking flexibility, fleet growth, and financial control. It offers a credible alternative to purchasing, particularly for startups and operators navigating volatile markets. 

More complex than ACMI, dry leasing requires technical, regulatory, and contractual expertise to ensure secure operations. 

With nearly 30 years of experience in international leasing and charter, Avico supports airlines, startups, and charter operators in sourcing, contracting, and implementing dry lease solutions tailored to their strategic goals. 

👉 Find a dry lease aircraft and receive a personalized proposal: https://www.avico.com/devis/