In the United Kingdom, aircraft leasing is a lease if an aircraft is operated under the lessor`s Air Operator`s Certificate (AOC).  An agreement where the lessor makes the aircraft, flight crew and maintenance available, but the lessee makes available to the cabin crew, is sometimes referred to as a “wet lease”, a term used in particular in the United Kingdom. It is also occasionally called “wet lease”.  In the United Kingdom, there is a Dry Lease when an aircraft is operated under the licensee`s AOC.  While it is interesting to consider the legal status of the parties in the context of an aircraft lease, the relevant issue may not be legal, but rather what is the best way for all parties involved. In the current climate, where few airlines enter into new leasing contracts, the termination of an existing lease agreement and the reunion of the aircraft are problems specific to the lessor. Perhaps the best way to weather this storm would be for the parties to restructure existing leases instead of landlords resilient them and risk a series of similar actions from the airline`s other creditors. This would be more desirable in the long term to ensure the survival of the airline and its ability to recover once the world recovers from the effects of the Covid 19 pandemic. Rentals are often anchored in LIBOR rates.
The renter provides fuel and takes care of airport charges and all other customs duties, taxes, etc. The flight uses the renter`s flight number. A wet lease usually lasts 1-24 months. A wet lease is usually used during peak season, during annual heavy maintenance tests or for the launch of new routes.  A leased aircraft may be used for air services in countries where the operation of the licensee is prohibited.  It can also be used to replace unavailable capacity or circumvent regulatory or policy restrictions. The MAC/MVA is generally broad, which can give creditors a wide margin of appreciation in exercising their right to explain that an event of default has occurred. However, it is interesting to note that while most creditors would generally insist on maintaining the MAC/MAE clause in their agreements, creditors are reluctant to rely on the MAC/MAE clause to declare default – and instead prefer to rely on certain default events. This rightly applies, as a statement that a delay event occurred would have a serious chain reaction that would cause cross-losses in the tenant`s other agreements and possible damage to the tenant`s reputation. . .