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ARTICLE · 26 JUNE 2024

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Aviation Finance & Leasing 2024

The Trusted Advisors
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In a wet lease arrangement, the lessor provides not only the aircraft but also the crew, maintenance, insurance, and other operational services to the lessee.

NigeriaTransport
Taye Awofiranye
Taye Awofiranye
Chiamaka Ogbonnaya
Chiamaka Ogbonnaya
Chiamaka Anyanwu
Chiamaka Anyanwu
Elizabeth Olalekan
Elizabeth Olalekan
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1. General and Contractual

1.1 What are the typical structures available for financing the purchase of an aircraft?

In a wet lease arrangement, the lessor provides not only the aircraft but also the crew, maintenance, insurance, and other operational services to the lessee. Wet leases are often used for short-term capacity needs, such as seasonal fluctuations in demand or aircraft maintenance downtime.

The Nigerian Civil Aviation Regulations 2015 (NCAR) provides for dry lease, wet lease, damp lease and interchange operations. It further mandates that holders of air operation certificates who intend to borrow or lend aircraft between themselves must obtain prior approval from the Nigerian Civil Aviation Authority (NCAA).

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