Exploring Different Types of Aircraft Leasing: A Comprehensive Guide

Abhishek Nayar

08 Aug 2023

In the ever-evolving aviation landscape, airlines and aviation businesses face the challenge of staying competitive while managing costs effectively. Aircraft leasing has emerged as a strategic solution to address these challenges, offering an alternative to purchasing aircraft outright.

Understanding Aircraft Leasing

The Basics of Leasing

Leasing is a contract between an aircraft owner (the lessor) and an operator (the lessee) that permits the operator to utilize the aircraft for a set period of time and at a particular cost. This arrangement provides airlines with operational flexibility without the hefty upfront costs associated with ownership. Leasing agreements can vary in duration, from short-term leases to long-term arrangements.

Advantages of Leasing

Leasing grants airlines the ability to modernize their fleets swiftly, incorporating advanced technology and fuel efficiency. It also eliminates concerns about aircraft depreciation and resale value. Furthermore, leasing agreements often cover maintenance, reducing downtime and operational disruptions.

Different Types of Aircraft Leasing

Wet Leasing

Wet leasing involves not only leasing the aircraft but also availing the crew, maintenance, and insurance (ACMI) from the lessor. This implies that the lessor is responsible for the flight's operation and safety, but the lessee is liable for the hours flown, fuel, and airport fees. Airlines typically opt for wet leasing during peak seasons or when expanding routes quickly, as it offers a turnkey solution for immediate operational needs.

Dry Leasing

Contrary to wet leasing, dry leasing solely provides the aircraft itself. Airlines are responsible for crew, maintenance, insurance (CMI), and other operational aspects. This implies that the lessee is responsible for the flight's operation and safety, while the lessor is paid a fixed monthly or hourly fee.

A dry lease is often for a lengthy period of time, ranging from a few years to a decade, and is frequently used to extend or refresh the fleet, decrease capital expenditure, or benefit from tax breaks. Dry leasing suits carriers with the capability to manage these factors independently.

AerCap, Air Lease Corporation, Avolon, and SMBC Aviation Capital are among the most widely recognized dry leasing enterprises.

Damp Leasing

Damp leasing, a term gaining prominence, falls between wet and dry leasing. The aircraft and a portion of the crew, generally the cockpit crew, are provided by the lessor, while the lessee supplies the remainder of the crew, maintenance, and insurance. This means that, depending on the contract conditions, the lessor and lessee share part of the obligations and expenses of the operation.

A damp lease is often of medium duration, spanning from a few months to a few years, and is frequently used to supplement or train personnel as well as comply with regulatory requirements. This arrangement offers a balanced middle ground, providing operational support while allowing airlines to oversee maintenance internally.

Exploring Damp Leasing

What is Damp Leasing?

Damp leasing combines the convenience of wet leasing with the autonomy of dry leasing. Under damp leasing, airlines receive not just the aircraft and crew but also additional services like scheduling and operations management. Maintenance, however, remains the responsibility of the lessee.

How Does Damp Leasing Work?

In a damp lease agreement, the lessor typically supplies the aircraft and crew, ensuring seamless day-to-day operations. Airlines benefit from reduced administrative work and a quicker start to operations. However, maintenance and related decisions rest with the lessee, giving them greater control over the aircraft's care.

Advantages of Damp Leasing

Damp leasing strikes a balance between operational support and control. Airlines can focus on their core competencies while the lessor takes care of crewing and certain services. This arrangement is especially attractive for carriers looking to expand their network without overextending their resources.

Factors Influencing Aircraft Leasing Decisions

Fleet Requirements

Airlines consider their immediate and long-term fleet needs when deciding on leasing arrangements. Factors like passenger demand, route expansion, and aircraft performance play pivotal roles.

Market Trends

Airlines keep a keen eye on market trends and emerging technologies. Leasing allows them to incorporate the latest advancements without the risk associated with ownership.

Financial Considerations

Leasing presents financial advantages such as lower upfront costs and predictable monthly expenses. Airlines can allocate capital to other areas of their business while enjoying the benefits of a modern fleet.

Key Players in Aircraft Leasing


Airlines, both established carriers and newcomers, engage in leasing to achieve flexibility and strategic growth. Leasing assists in entering new markets swiftly and adjusting capacity as needed.

Leasing Companies

Specialized leasing companies own and manage aircraft portfolios. These companies offer tailored solutions to airlines, catering to their specific operational requirements.


In the dynamic aviation landscape, aircraft leasing has proven to be a game-changer. It provides airlines with the flexibility to adapt to changing market conditions, incorporate advanced technologies, and optimize costs. Among the leasing options, damp leasing strikes a harmonious balance between operational convenience and control, making it an appealing choice for airlines aiming to navigate expansion efficiently.

With Inputs from LinkedIn, AeroTime

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How Panasonic’s New Inflight Entertainments System is Going to be a Giant Leap Forward

Abhishek Nayar

08 Aug 2023

The realm of in-flight entertainment and communication systems (IFEC) is witnessing a remarkable transformation with the latest addition from Panasonic Avionics – the pioneer in aviation technology. In an effort to elevate the flying experience of discerning travelers, Panasonic Avionics has introduced cutting-edge 4K OLED monitors specially designed for the first and business class cabins.

The Evolution of In-Flight Entertainment and Communication Systems (IFEC)

A Brief History of Inflight Entertainment Systems

From the humble beginnings of communal screens showing black-and-white movies to the advanced personal seat-back screens of recent years, inflight entertainment has come a long way. The pursuit of enhancing passenger comfort and engagement during flights has driven continuous innovation in this field.

Panasonic Avionics has been at the forefront of this evolution, consistently introducing groundbreaking technologies that enhance passenger engagement. With the introduction of the Astrova IFE assortment, they are once again setting new standards in aviation entertainment.

Introducing Panasonic Avionics' Astrova IFE Assortment

Panasonic's new inflight entertainment system is not just an upgrade; it's a leap into the future. The company has carefully crafted a holistic approach that encompasses advanced technology, engaging content, and passenger-centric design.

Advantages of OLED Technology

The utilization of OLED (Organic Light-Emitting Diode) technology in these monitors is a game-changer for the aviation industry. OLED screens offer unparalleled color accuracy, deeper contrasts, and wider viewing angles compared to traditional LED displays. Passengers can expect lifelike visuals that transport them into a world of cinematic brilliance, even at 40,000 feet.

Customized Screen Sizes for Luxurious Travel

Panasonic Avionics understands that luxurious travel demands tailored experiences. The Astrova IFE assortment features monitors in five sizes – 19, 22, 27, 32, and 42 inches. This range provides airlines the flexibility to curate cabin interiors that align with their brand and passenger expectations.

Elevating the Passenger Experience

Unmatched Visual Quality

The 4K resolution on OLED monitors brings an unprecedented level of detail to in-flight entertainment. Whether passengers are watching the latest blockbuster or immersing themselves in a captivating documentary, every frame comes to life with vibrant colors and astonishing clarity.

The visual quality of these 4K OLED displays, according to Panasonic, is crisp, clear, and has an infinite contrast ratio that delivers cinema-quality colors and perfect black. According to the firm, this combined offer provides a "better viewing experience than has ever been available on a commercial aircraft."

Enhanced Connectivity and Interactivity

Beyond visual quality, these monitors offer enhanced connectivity features. Passengers can access a wide array of content from their personal devices, transforming the screen into an interactive hub for entertainment, information, and communication. The touch-responsive displays provide intuitive navigation, making it easier than ever for passengers to tailor their journey experience.

Tailoring to Airlines' Preferences

Flexibility in Screen Sizes

Airlines have varying preferences when it comes to cabin layout and design. The Astrova IFE assortment's diverse range of screen sizes allows airlines to make strategic decisions based on their cabin configurations, ensuring that every passenger benefits from the enhanced experience these monitors provide.

Airlines' Collaboration in Selection

Panasonic Avionics values collaboration with airlines in creating tailored solutions. Before introducing the 4K OLED monitors, Panasonic Avionics worked closely with partner airlines to identify the ideal screen sizes for their passengers. This collaborative approach ensures that the screens seamlessly integrate into the overall cabin aesthetic while meeting passenger needs.

Ancillary Revenue Generation

The system's personalized content suggestions can also extend to shopping and in-flight services, potentially boosting airlines' ancillary revenue streams.

Sustainability in Aviation

Energy Efficiency of OLED Monitors

Apart from their visual prowess, these OLED monitors also contribute to sustainable aviation. OLED technology is inherently energy-efficient, consuming less power compared to traditional display technologies. This aligns with the industry's efforts to reduce the environmental footprint of air travel.

Reduced Physical Media

Panasonic's system reduces the need for physical media, such as magazines and newspapers, thereby contributing to a reduction in paper waste and environmental impact.

The Future of In-Flight Entertainment

Anticipating Passenger Expectations

As passenger expectations continue to evolve, Panasonic Avionics remains committed to pushing the boundaries of in-flight entertainment. The Astrova IFE assortment is a testament to their dedication to enhancing the travel experience, and it serves as a glimpse into the future possibilities of entertainment at 35,000 feet.


"Astrova is transforming the seat back into an easily configured, flexible, and personalized digital channel that caters to the individual needs of each passenger, enabling airlines to engage with their customers in flight like never before," Andy Masson, VP of product management at Panasonic Avionics, said at the unveiling at Aircraft Interiors Expo.

"With the introduction of these new 4K OLED screens for premium aircraft cabins, Panasonic Avionics is enabling airlines to enhance engagement with their most high-yielding passengers, helping them to not only retain existing customers, but also attract new ones."


Panasonic Avionics' latest endeavor – the 4K OLED monitors for first and business class cabins – marks a significant milestone in the aviation industry and is poised to transform the flying experience. The blend of cutting-edge technology, luxurious design, and sustainable innovation has the potential to redefine in-flight entertainment. As airlines embrace these monitors, passengers can look forward to journeys filled with immersive experiences that truly elevate the art of flying.

With Inputs from PanasonicAircraft Interiors International

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Increase in Private Jet Deliveries Sets Bombardier on Course to Achieve 2023 Target

Abhishek Nayar

07 Aug 2023

Bombardier, a prominent Canadian business jet manufacturer, recently unveiled its financial performance data for the second quarter of 2023. The company's strategic moves and operational achievements during this period shed light on its continued growth and prospects within the business aviation sector.

Financial Results Unveiled on August 3, 2023

On August 3, 2023, Bombardier made waves in the aviation industry by disclosing its financial results for the second quarter of the year. This quarterly report offered valuable insights into the company's progress, outlining key figures that underline its competitive edge in the market.

The firm also lauded its aftermarket division, which earned $428 million in revenue, a 19% increase over the same period in 2022. Overall, revenue in the second quarter of 2023 increased by 8% year on year to $1.7 billion.
"Bombardier delivered a very strong second quarter," stated Éric Martel, president and CEO of Bombardier. Our team effectively negotiated a highly volatile business climate that witnessed persistent demand for new and pre-owned aircraft, as well as steady service growth, all while supply chain pressure persisted."

"We continue to progress on our positive trajectory by delivering remarkable profit growth, propelled by a strong adjusted EBITDA increase and margin expansion, as well as positive adjusted net income and earnings per share." "Thanks to our incredible team's efforts, we increased our revenues by 8% year over year this quarter, fueled in part by an exceptional 19% year over year aftermarket revenue increase." Martel continued.

The free cash flow consumption of $222 million in the second quarter of 2023 was in line with forecasts. It includes spending to support the development of the new Global Aircraft Manufacturing Centre at Toronto Pearson Airport (YYZ), which is scheduled to open this year, as well as working capital investments to support increased deliveries in the second half of the year. The firm recorded a positive adjusted net income of $80 million in the second quarter of 2023, compared to a loss of $38 million in the same quarter the previous year.

Steady Growth in Jet Supply

One of the highlights of Bombardier's performance in the second quarter was its supply of private jets. The company reported that it had delivered a total of 29 private jets between April and June 2023. This number indicated a modest increase compared to the same quarter in the previous year. Notably, this growth in jet supply signifies Bombardier's continued ability to meet the demands of its discerning clientele.

Looking Back and Forging Ahead

The slight uptick in the number of private jets supplied during the second quarter reflects Bombardier's dedication to maintaining its strong presence in the business jet market. With the supply of private jets exceeding the previous year's figures, the company showcased its commitment to consistently delivering exceptional products and services.

Progress Towards 2023 Guidance

Bombardier's announcement also brought to the forefront its outlook for the rest of 2023. The company expressed confidence in its performance, stating that it had a "solid line of sight" towards reaching its overall guidance for the year. This declaration underscores Bombardier's strategic planning and its alignment with market trends and customer preferences.


In conclusion, Bombardier's publication of its second-quarter 2023 performance data highlights its noteworthy achievements and promising prospects within the business aviation sector. The company's steady growth in private jet supply and its affirmation of reaching its 2023 guidance indicates a well-positioned player in the industry. As Bombardier continues to make strides in the aviation world, stakeholders and enthusiasts alike eagerly anticipate its future endeavours.

(With Inputs from AeroTime)

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Aeroflot Instructs Pilots to Turn Brakes Off In Some Airbus & Boeing Aircraft

Radhika Bansal

07 Aug 2023

The world of aviation is a meticulously orchestrated symphony of technology, safety, and precision. Airlines invest significant resources to ensure the seamless functioning of their aircraft. However, a recent development involving Russia's national carrier, Aeroflot, has raised eyebrows within the aviation community. Due to complications in procuring maintenance components for foreign aircraft, Aeroflot finds itself in an unprecedented situation, operating at least nine planes without brakes. This unusual step highlights the challenges airlines can face when supply chain disruptions disrupt routine maintenance procedures.

Maintenance Component Woes: The Complication

Maintaining an airline fleet involves a delicate balance between regular maintenance, component replacement, and operational efficiency. One critical aspect of aircraft maintenance is brake replacement. Brakes are an essential safety feature, ensuring that an aircraft can slow down and come to a safe stop during landing. However, Aeroflot's current dilemma stems from difficulties in obtaining the necessary maintenance components, particularly brakes, for its Airbus and Boeing aircraft.

Turning Off the Brakes: A Controversial Solution

To cope with the shortage of replacement brakes, Aeroflot has taken a controversial and unprecedented approach: instructing its pilots to turn off the brakes on certain aircraft. The Moscow Times reports that since the end of July 2023, the airline has been operating at least nine planes without functioning brakes. These aircraft include four Airbus models (A320, A330, and two A321s) and five Boeing 777s.

Navigating the Risks: Advisories to Pilots

Understanding the gravity of the situation, Aeroflot has not taken this step lightly. The airline's flight operations department has issued advisories to its pilots, outlining the potential risks associated with flying without brakes. These advisories serve as a reminder of the complexities and dangers involved in operating aircraft under such circumstances.

According to a message obtained and published by Aviatorschina, "When the brakes are not deactivated, the aircraft will tend to turn to the side." Keep this in mind, especially while landing on a wet runway with a crosswind!!! There are width restrictions on the runway. The risk of overrunning the runway!!!"

When worn-out parts cannot be replaced promptly, airlines are authorized to operate aircraft with deactivated brakes for a maximum of ten days, according to the publication. Following Russia's invasion of Ukraine, Western nations enacted sanctions that not only restricted the airspaces of the United States, United Kingdom, and EU to Russian aircraft, but also barred aviation companies from servicing or providing replacement parts to the country's aircraft.

As a result, Aeroflot, whose fleet comprises primarily Western-made Airbus and Boeing aircraft, is unable to obtain components and supplies directly from the original equipment manufacturers (OEMs). According to ch-aviation.com, the airline's fleet consists of 295 aircraft, 217 (about 74%) of which are Airbus or Boeing. Aeroflot has apparently begun sending aircraft to Iran for maintenance in order to circumvent these restrictions. Iran is thought to have accumulated vast experience in aircraft maintenance under such conditions after being subjected to harsh sanctions for several decades.

Industry Reaction and Broader Implications

Aeroflot's decision has undoubtedly garnered attention within the aviation industry and beyond. While the airline's efforts to manage the situation are commendable, the incident underscores the vulnerabilities in the global aviation supply chain. The complications faced by Aeroflot could potentially have far-reaching implications for other airlines as well. It prompts a broader discussion about the need for robust supply chain management strategies to prevent such scenarios from arising in the first place.


Aeroflot's current predicament is a testament to the intricate web of challenges that airlines can encounter in their pursuit of operational excellence. While the airline's decision to operate aircraft without brakes might seem unconventional, it highlights the lengths to which carriers may need to go when confronted with supply chain disruptions. The incident serves as a call to action for the aviation industry to reevaluate its supply chain strategies and ensure the consistent availability of critical maintenance components to uphold passenger safety and maintain operational integrity.

(With Inputs from AeroTime)

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Go First In Talks with Pratt & Whitney Despite Legal Setbacks

Abhishek Nayar

07 Aug 2023

In a recent legal development, Indian low-cost carrier Go First's efforts to compel Pratt & Whitney to provide aircraft engines have been thwarted by a US court judgment. The US District Court's decision, handed down by Judge Laura Hatcher, has dismissed Go First's application to enforce a Singapore International Arbitration Centre (SIAC) judgment. This decision comes as a result of the tribunal's final ruling conflicting with its previous interim decision, highlighting the complexities and challenges of cross-border legal proceedings.

Background and Legal Proceedings

In late April, Go Airlines (India) Limited, operating as Go First, initiated legal proceedings by filing a motion in the US District Court to enforce the SIAC arbitration's interim ruling. The case, titled Go Airlines (India) Limited v. International Aero Engines, LLC (case no: 1:2023mc00249), revolves around Go First's attempt to compel Pratt & Whitney, along with some of its subsidiaries, to provide aircraft engines as per the arbitration's interim decision.

Before suspending flights and filing for voluntary administration earlier this year, Go First obtained an interim order from the SIAC requiring Pratt & Whitney to supply at least ten serviceable engines by April 27, 2023, and a further ten spare leased engines per month until December 2023. Go First has consistently maintained that continuing issues with the supply and maintenance of the Pratt & Whitney GTF PW1100G engines fitted to its Airbus fleet forced it to ground a major portion of its fleet, resulting in a financial crisis and eventual insolvency.

International Aero Engines appealed the SIAC's interim ruling in Delaware on May 11, claiming it exceeded the original contractual requirements. It also expressed reservations about Go First's capacity to pay for the engines, referring to the carrier as a "chronic defaulter."

The Role of the Singapore International Arbitration Centre (SIAC)

The SIAC, a renowned institution for resolving international disputes, played a pivotal role in this legal battle. Its arbitration process is designed to provide a neutral platform for parties involved in cross-border disputes to settle their conflicts outside of traditional court systems. Arbitration is known for its efficiency, confidentiality, and flexibility, making it an attractive option for resolving complex international disputes.

Conflicting SIAC Decisions

The complexity of the case became evident when the SIAC tribunal issued a final decision that contradicted its previous interim ruling. This contradiction likely led to the US District Court's decision to dismiss Go First's application for enforcement. The conflicting decisions raise questions about the interpretation of evidence, legal arguments, and the intricacies of international arbitration procedures.

Cross-Border Legal Challenges

The Go First v. Pratt & Whitney case underscores the challenges inherent in cross-border legal proceedings. Differences in legal systems, cultural nuances, and conflicting legal interpretations can complicate the resolution of disputes between entities from different jurisdictions. The case's outcome highlights the importance of clear and precise arbitration clauses in contracts, as well as the need for parties to be prepared for the potential complexities of enforcing arbitration judgments across international boundaries.

Implications for the Aviation Industry

The aviation industry heavily relies on various stakeholders working harmoniously to ensure safe and efficient air travel. Legal disputes, such as the one between Go First and Pratt & Whitney, have the potential to disrupt the industry's equilibrium. Delays in acquiring aircraft engines can impact flight schedules, operational costs, and the overall passenger experience. This case serves as a reminder of the legal intricacies that airlines and aircraft manufacturers must navigate to ensure smooth operations.


The dismissal of Go First's application by the US District Court, based on conflicting SIAC decisions, sheds light on the complexities of cross-border legal proceedings. The case emphasizes the importance of precise arbitration clauses, meticulous legal strategies, and a deep understanding of international arbitration procedures. As the aviation industry continues to evolve, legal disputes like these underscore the need for careful contract drafting and a proactive approach to resolving conflicts in a globalized world.

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Air India - Vistara Merger Progress; Air India CEO Meets India's Antitrust Head

Radhika Bansal

07 Aug 2023

Air India Chief Executive Campbell Wilson has held talks with India's antitrust head on its pending merger with sister airline Vistara, weeks after the watchdog raised concerns about market power, people familiar with the matter said. The Competition Commission of India has been scrutinising the planned merger of Air India, which Tata Group took over last year, with Vistara, a joint venture between Tata and Singapore Airlines. The merged airline would challenge local rival and market leader, IndiGo.

Sharing new details of CCI's concerns, the first source said the watchdog's confidential notice to the airline has raised worries about the combined entity's market power on many international and domestic routes. The CCI also said its initial review showed the market share of the Tata Group could be more than 50% in at least seven domestic markets, raising competition concerns, the person added.

Following a request by the company, CEO Wilson and the General Counsel of Tata Group, Sidharth Sharma, in recent days met India's antitrust chief, Ravneet Kaur, to discuss the ongoing merger process, said two of the four sources. Such meetings are typically held to find a way forward and assuage the CCI's concerns, sources said, declining to elaborate further or be named as the talks are confidential.

It was reported in June that the CCI has been concerned that some Air India-Vistara merged routes and categories - such as business class travel - could have a monopoly. The "CCI has asked how Tata plans to think about pricing strategies ... The (market) power they will have, how will all this affect pricing," said the first person.

The CCI's scrutiny comes amid growing concerns within the industry about a duopoly, with a merged Air India-Vistara and IndiGo controlling more than 75% of the domestic market as smaller rivals such as SpiceJet and Go First struggle. For the first half of 2023, IndiGo's market share stood at 58%, while the Tata Group airlines, including AirAsia India, accounted for 25%.

Air India is yet to respond to CCI's concerns, two of the sources said. Once they do, the watchdog will review their submissions to decide on the merger or has the option to order a broader review if it's not satisfied. Vistara CEO Vinod Kannan said last month Air India-Vistara merger was expected to receive all regulatory approvals by April 2024.

Merger Will Nave No Adverse Impact on Competition

ata Sons-run domestic airlines Air India and Vistara have conveyed to the antitrust regulator Competition Commission of India (CCI) that a proposed merger of the two will not impact competition adversely as rivals are present on most routes that the combined entity will fly, according to a report. The CCI’s decision to review the Air India and Vistara merger will not have any material business impact, although it could delay the process, sources told The Economic Times.

Earlier, CCI had issued notice to the two airlines seeking reasons on why a probe of the impact of the merger should not be initiated. According to competition law, the antitrust body has the power to do a thorough investigation before giving the green light for a merger or acquisition (M&A) in case there are concerns about possible anti-competitive practices about the deal.

If the deal sees the light of day, it will make Air India the country's largest international carrier and second-largest domestic airline. Air India, which Tata Group took over last year, wants to modernise its fleet, operational systems and revenue management.

As the Tata Group plans to put its airlines in sync with each other and consolidate operations, it has come under the regulator's lens. Thus, the two airlines have not been given the expedited permissions sought by them. Moreover, the regulator has asked the two airlines why an investigation of the impact the merger would have on the industry not be conducted, the report said.

The Role of CCI

As per the competition law, the regulator can probe into the matter before giving the green light for a merger or acquisition in case there are concerns about possible anti-competitive practices in the deal. Section 29 of the Competition Act mentions the procedures for the probe of combinations. In CCI parlance, mixtures refer to mergers and acquisitions.

"Where the Commission thinks that a combination is likely to cause, or has caused an appreciable adverse effect on competition within the relevant market in India, it shall issue a notice to show cause to the parties to combination calling upon them to respond within thirty days of the receipt of the notice, as to why investigation in respect of such combination should not be conducted," as per the section.

In case, the regulator is not satisfied with the responses, it can go to the second stage wherein the parties will be asked to make the details of the proposed deal public and comments will be sought. Besides, CCI can seek additional information from the parties before deciding on the deal.

There have also been instances where parties to a combination submitted remedial measures to address anti-competitive concerns and after accepting them, CCI has given its conditional approvals. Additionally, the CCI can request further information from the parties involved before deciding on the merger.

In November 2013, the CCI approved a proposal by Gulf carrier Etihad to purchase 24% of grounded Jet Airways. The CCI then cited the insignificant increase in market share forecast on India-UAE routes as one of the reasons for the approval.

(With Inputs from Reuters)