One of the key issues that distinguishes a dry water lease is “who has operational control” in the sense of 14 CFR 1.1. In a “wet” leasing situation, the owner retains operational control of all flights, as the leaseholder provides both aircraft and crews. In a “dry” rental situation, the tenant makes his own crew available and the tenant exercises operational control of his flights. Despite the bankruptcy of Air Berlin and Monarch Airlines, leased aircraft were quickly placed at “normal market rates” due to traffic growth due to growth in global revenue, as passenger-kilometres increased by 7.7% year-on-year until September 2017 and Airbus is having difficulty supplying A320neos due to delays in the supply of engines.  In a dry lease, the owner of the aircraft makes the aircraft available to the unmanned taker. Neither the lessor nor the taker must be in possession of an air carrier certificate, while an air carrier may be a lessor or a taker under a dry lease. Non-commercial operators can supply their aircraft to third parties through a non-exclusive dry rental service, but the FAA`s compliance, tax, insurance and operating considerations can be complex. While these distinctions may seem simple, the meaning of “who has operational control,” as defined in 14 CFR 1.1, leaves room for interpretation. The FAA explains: “Determining in each situation, whether the lessor or lessor exercises operational control, requires consideration of all relevant factors present in each situation. The terms of the lease are important, but as they may not reflect the actual situation of 2/10/16 AC 91-37B 4, actual agreements and responsibilities should be examined very carefully. Contact AerSale today to find out how we`re helping commercial aviation customers grow the healthy fleet through first-class aircraft leasing, engine leasing and purchasing programs. Wet leasing is sometimes used for political reasons. For example, EgyptAir, an Egyptian government company, cannot fly to Israel under its own name because of a well-founded Egyptian government policy.
As a result, Egyptian flights from Cairo to Tel Aviv are operated by Air Sinai, which is leased by EgyptAir wet to bypass the political issue.  Airlines that cannot afford to do good business with direct factory aircraft, or airlines that wish to maintain flexibility, can lease their aircraft through an operational lease or a lease-financing.