A dry lease agreement is a term used in the aviation industry to describe an arrangement where an aircraft owner leases their aircraft to another party, without any crew, maintenance or insurance included. This type of leasing arrangement is common among private and commercial aircraft operators.
If you are planning on leasing an aircraft, it is important to understand the terms of the contract and what is expected of both parties. In this article, we will explore the FAA dry lease agreement and what it entails.
The Federal Aviation Administration (FAA) is the governing body responsible for regulating all aspects of aviation in the United States. The FAA dry lease agreement is a standard lease agreement template designed for aircraft owners and lessees, which outlines the terms of the lease agreement.
The FAA dry lease agreement defines the responsibilities of both the aircraft owner and the lessee. It outlines the terms of the lease, the insurance requirements, and the obligations for the maintenance and safety of the aircraft. The agreement also outlines the rules and regulations of the FAA that must be complied with during the lease period.
One of the key benefits of a dry lease agreement is that it allows the lessee to have full control over the aircraft without the cost of hiring a crew or obtaining insurance. The lessee takes full responsibility for the aircraft, its maintenance, and safety while in their possession.
A dry lease agreement can be beneficial for aircraft owners as well. It allows the owner to generate revenue from their aircraft while reducing their operational costs. The owner can also retain ownership of the aircraft and maintain control over its maintenance and safety.
Before entering into a dry lease agreement, it is essential to thoroughly review the terms and conditions of the contract. You should ensure that the agreement complies with all FAA regulations, and that both parties are clear on their respective roles and responsibilities.
In summary, the FAA dry lease agreement is a standard contract designed to protect both the aircraft owner and lessee during a leasing arrangement. It is a valuable tool for private and commercial aircraft operators, providing them with a clear understanding of the terms and conditions of the lease, the obligations of both parties, and compliance with FAA regulations.