The distinction between wet lease (ACMI - Aircraft, Crew, Maintenance and Insurance) and dry lease (aircraft only) is fundamental to how commercial aviation finance is structured. Whether you are a lessor providing aircraft to other operators or a lessee taking aircraft from a lessor, the finance structure needs to reflect the operating model and the distribution of risk.
In a wet lease (ACMI) arrangement, the lessor provides the aircraft, crew, maintenance and insurance - essentially a complete flying operation - to a lessee who uses the aircraft under their own traffic rights. For finance purposes, the lessor needs to demonstrate that the ACMI revenue stream covers the finance obligation and that the aircraft will be maintained to the required standard throughout the lease period.
In a dry lease, the lessee takes responsibility for crew, maintenance and insurance. The lessor may be an aircraft lessor (a company that acquires aircraft specifically to lease them) or an operator who is generating additional revenue from an aircraft they own. Finance for dry lessors needs to reflect the credit quality of the lessee, the lease terms, and the aircraft's residual value.
Both structures have different implications for VAT, insurance, maintenance reserves and aircraft return conditions. Lenders experienced in commercial aviation finance understand these structures - lenders who are not specialists may struggle to accommodate them. DBF ensures you are presented to the right lender for your specific operating model from the outset.
Key Lenders for This Segment
| Lender | Rate from | Strengths |
|---|---|---|
| Investec | 5.8% p.a. | Specialist aviation, large tickets, strong covenants |
| HSBC | 6.0% p.a. | Global capability, complex structures |
| Close Brothers | 6.1% p.a. | Proven commercial desk, accessible |
| Paragon | 6.9% p.a. | Flexible on complex or unusual structures |
| Shawbrook | 7.2% p.a. | Accessible for newer operators |