Wet lease: refers to any lease in which the lessor (air operator) provides the lessee (air operator) with aircraft and at least one aircrew through agreement. Wet lease is usually controlled by the lessor.
Lessor: the party that provides the aircraft in the lease.
Lessee: the party who uses the plane in the lease.
The terms dry lease and wet lease originally originated from the aviation industry, and other leasing businesses also expanded from these two businesses. The biggest difference between dry lease and wet lease is that dry lease only provides financing for aircraft; Wet lease not only provides financing for aircraft, but also supports fuel, crew and maintenance. It's about the registration method of dry lease and import of second-hand aircraft. There are generally two ways to register a dry lease aircraft. One is to register in the country where the aircraft owner (lessor) is located and use the nationality mark and registration mark of the country where the lessor is located; One is to register in the country where the aircraft user (lessee) is located, and use the nationality mark and registration of the country where the lessee is located.
It will be inconvenient to register the plane in the lessor's country. If the former Beijing Administration of Civil Aviation of China (restructured China International Airlines) leased two B747SP aircraft from the United States and registered them in the United States, and their nationality marks and registration marks were N 130 1304E and N 1304E respectively, the relevant regulations of the FAA should also be implemented. For example, the maintenance organization must be recognized by FAA, and the aircraft release personnel must hold FAA A &；; P license plate and so on. Because of these regulations, we have to spend a lot of money to entrust Pan Am to maintain and release the aircraft. In addition, we have to fly to the United States regularly for FAA inspection.
It is the best choice to register the aircraft in the country where the lessee is located (the country where the aircraft operates). The registration of aircraft in the operating country is under the jurisdiction of the airworthiness department of that country, and the relationship is relatively smooth, and its airworthiness is easy to control, which is conducive to ensuring safety. At present, the vast majority of aircraft leased in China are registered in China, with China nationality and registration marks.
Before the nationality of imported aircraft is transferred, airworthiness inspection is required to meet the airworthiness requirements of the newly registered country before registration is allowed. The airworthiness department of the Civil Aviation Administration of China also has specific provisions in this regard. The working procedures of aircraft leasing are as follows:
1. When an airline rents an aircraft according to its transportation needs, it must first submit a request to the Civil Aviation Administration in the form of a feasibility study report, including the corresponding financing methods. After being examined, selected and comprehensively balanced by the Civil Aviation Administration and formally approved by the State Planning Commission, airlines can formally negotiate with foreign investors.
2. Order aircraft and purchase and transfer. According to the documents approved by the state, China Aviation Equipment Company and airlines shall negotiate with each other. And signed an aircraft purchase contract with the aircraft manufacturer. Airlines should contact foreign banks or leasing companies at least three months before the delivery of the aircraft. After the airline entrusts the banking consortium or leasing company to arrange the lease, China Aviation Equipment Company and the airline will purchase the contract; Transferred to the lessor, who will pay the purchase price to the aircraft manufacturer and then lease the aircraft to the airline.
3. External bidding. Airlines invite tenders to foreign countries, but they don't send tender notices or sign any written documents, such as letters of intent and power of attorney. Through the usual contact between airlines and foreign investors, consciously disclose the relevant information of ordering aircraft to foreign investors, such as the model and quantity of leased aircraft and engines; Aircraft specifications, delivery date, lease term, etc.
4. Program evaluation. According to the financing schemes provided by banks and leasing companies, airlines list the main terms and compare them one by one, and make a comprehensive evaluation of each scheme. For leases with more bids, 1-2 review is required to gradually narrow the scope of consideration. Then, we will further negotiate with foreign businessmen on several better schemes until an economical, safe and reliable scheme is selected. The scheme evaluation involves the following aspects: lease term, currency and exchange rate risk, investment and loan ratio, final purchase value, net present value, lease interest rate and loan interest rate, and the bidder's reputation.
5. Issue power of attorney: After strict examination and scientific evaluation, the airline will submit the final selected scheme to the Civil Aviation Administration for approval. After approval, the airline will send the plan negotiated with foreign businessmen in the form of power of attorney, and hire an internationally influential law firm with experience in aircraft leasing to review the leasing documents drafted by the lessor, and at the same time inform the lawyer of the contents and requirements of the power of attorney, so that the lawyer can negotiate with the lessor and the leasing parties on all documents according to the intention of the airline. If new problems are found, lawyers must ask for our opinions before consulting with each other.
6. Make a work schedule. After issuing the power of attorney, the airline shall determine the following work schedule with the organizers, banks, investors and other participants: the date of investment and loan commitment, the date of completion and distribution of the first draft of the aircraft leasing document, the date of the first consultation document, the date of distribution of the revised draft, the date of the second consultation document and the date of signing.
7. The lessee's working procedures. The working procedures of the lessee mainly include: reviewing the format of insurance, letter of guarantee and legal opinion, economic calculation and liability guarantee; Prepare the relevant pre-documents for aircraft leasing, and go through relevant procedures, such as power of attorney, letter of commitment for aircraft nationality registration, special flight permit, bank guarantee, insurance policy, lawyer's opinion, etc.
8. Signature and delivery of aircraft. The two parties to the transaction can formally sign the agreement only after consultation and review of documents, and there is no disagreement. Within 30 days after the signing of the contract, it is necessary to register the foreign debt with the State Administration of Foreign Exchange, obtain the foreign debt registration certificate, and require the guarantee bank to sign the Confirmation of Guarantee Transfer and the insurance company to sign the Notice of Insurance Transfer.