Leasing an aircraft offers many of the same benefits of owning one—without the long-term financial commitment. Drawing back to our waffle maker, those who own the waffle maker won’t be using it every day, so they may consider leasing it to some coworkers or maybe some neighborhood kids. Leasing allows you to use it without the long-term financial commitment or initial investment. The same applies to aircraft, owners often rent their planes to generate revenue when not using their aircraft themselves. Aircraft lessees tend to choose one of two options available: A dry lease, or a wet-lease. A wet lease (also known as an ACMI lease) is a structure where the owner or lessor of the asset provides the aircraft with the entire crew, maintenance and insurance to the lessee, while a dry lease is solely the aircraft. With both leasing options come constraints. Leasing can be a more attractive option than purchasing depending on the utilization of the aircraft and how it impacts the ability to take advantage of any available tax benefits. Many people choose to lease an aircraft because they are not able to take advantage of the tax benefits that ownership can provide. Aircraft used for business purposes can provide tax benefits, but personal use does not. Understanding how the aircraft will be utilized can often be one of the primary driving forces in the decision to lease or purchase an aircraft. Although leasing an aircraft is rather similar to a vehicle, there are considerably more factors that weigh in. An example of this may be in the event damage was to occur to the aircraft during the lease, unexpected obligations may apply to the lessee.

Again, another attractive option but with all lease agreements there are restrictions and maintenance fees that should also be up for consideration when thinking about leasing an aircraft. This further comes into play depending on the lease agreement dependent on the lessor.