Dry Lease

Ice Air Trading has established an extensive network of aircraft fleet decision makers. Through this network we can efficiently and effectively assist in the sourcing and placement of aircraft under dry lease terms. We have successfully remarketed aircraft on behalf of airlines, investors and banks.

Dry leases are designed around the aircraft only and are becoming one of the most common acquisition options for longer-term aircraft requirements. There are two different versions of dry leasing: Financial Lease and Operating Lease. The basic differences are as follows:

Operating Lease

The intent is to utilize the aircraft for a certain period of time, usually from two to seven years. Delivery and redelivery conditions are an important part of the lease structure and would include a maintenance reserve fund in order to accommodate all the requirements during the lease term. The aircraft does not appear on the lessee’s balance sheet.

Financial Lease

The intent is to lease the aircraft for a certain period of time with the objective of purchasing the aircraft at the end of the lease. The lease payments over the term will commonly cover up to 90% of the aircraft value with a fixed balloon payment at lease end. The aircraft does appear on the lessee’s balance sheet.