Although aircraft leasing has been a practice between airlines government agencies and international non-government organisations, there are certain businesses whose operations rely on the use of aircrafts. Such include businesses that deal in highly perishable commodities and those that offer aircraft training. While airlines, government agencies and non-governmental organisations may not find it a challenge to buy their own aircrafts, it can be a challenge to businesses that may have no alternative apart from leasing the same. There are various Australian airlines and other aircraft dealers that provide different types of aircraft for lease at varied aircraft leasing rates.
However, airlines, government agencies, non-governmental organisations and certain businesses capable of purchasing their own aircraft opt to lease rather than buy for various reasons including to increase their operation capacity during peak periods. An airline may have passenger bookings beyond the capacity of its own aircrafts and may resort to lease additional aircrafts to increase its fleet. For a business that offers aircraft training, leasing can be cost effective compared to owning aircraft. Alternatively, such a business may have its own fleet but increase its fleet through leasing to satisfy its training demand. Apart from being cost effective, aircraft leasing removes a lot of burden from a lessee. Operating an aircraft can be a very expensive affair, considering the varied taxes and incidental costs included and through leasing, an aircraft lesser remains with most of the responsibility. However, allocation of responsibilities between an aircraft lesser and lessee determines the amount of aircraft leasing rates charged by a lesser.
Aircraft leasing airlines and other companies provide various kinds of lease. Under what is referred to as Wet Lease in the aviation industry, an aircraft lesser caters an aircraft, both operation and maintenance crew and provides for insurance cost. Although this type of lease can certainly be easy on a business, it is very expensive. Under Dry Lease, an aircraft lesser provides an aircraft to a lessee but without insurance, operation and maintenance crew. The lessee is responsible for all these. Although this type of lease can be demanding to a business, it attracts reduced aircraft leasing rates.