As part of a comprehensive industry response to federal\nconcerns over illegal charter flights \u2013 including those conducted under\nso-called \u201csham dry lease\u201d arrangements \u2013 the National Air Transportation\nAssociation (NATA) and other leading industry groups today announced the\npublication of the \u201cGeneral Aviation Dry Leasing Guide,\u201d which breaks down key\nregulatory information related to the proper use of leases and how improper\nuse, whether intentional or inadvertent, can lead to illegal operations.<\/p>\n\n\n\n
The free \u201cGeneral Aviation Dry Leasing Guide\u201d was assembled\nby the Aircraft Owners and Pilots Association, Experimental Aircraft\nAssociation, General Aviation Manufacturers Association, Helicopter Association\nInternational, NATA, and the National Business Aviation Association.<\/p>\n\n\n\n
Nearly all general aviation flights – including those\nconducted under dry leasing arrangements – take place in compliance with\nFederal Aviation Administration (FAA) regulations and other applicable laws. Aircraft\ndry leases are commonly used in the industry, and when properly implemented,\nthey are compliant with the regulations. In simplest terms, a dry lease is one\nin which the lessor simply provides an aircraft, leaving it to the lessee to\nobtain crewmembers, and also to assume operational control of a flight.<\/p>\n\n\n\n
That said, the FAA\u2019s increased scrutiny over illegal charter\nflights using \u201csham dry leases\u201d to disguise the true commercial nature of a\nflight \u2013 which has taken shape largely under the agency\u2019s Safe Air Charter\ninitiative \u2013 has led aircraft owners and lessors to seek greater clarity on the\narrangements, in order to fully ensure proper compliance.<\/p>\n\n\n\n
Written by veteran industry experts, the \u201cGeneral Aviation\nDry Leasing Guide\u201d offers a detailed breakdown of the best practices for proper\nuse of dry leases, clarifying how aircraft owners can derive benefits from the\narrangement, while enhancing the industry\u2019s vigilance against practitioners of\nillegal charter.<\/p>\n\n\n\n
“We are pleased to provide this industry guide to\nensure continued regulatory compliance for those involved in leasing,”\nsaid Ryan Waguespack, NATA Senior Vice President. “Dry leasing is a\ncommonly used aviation tool and when properly executed is beneficial to the\nindustry. However, as noted in recent FAA enforcement and industry reports to\nthe Illegal Charter Hotline, improper and sham dry leases are a significant\ncontributor to illegal charter flight activity. Those using dry leasing as a\nruse to hide unauthorized charter operations have been put on notice that their\nactions are coming under increased FAA scrutiny. The Aircraft Leasing Guide\nclarifies how to properly construct and operate with a lease in place.”<\/p>\n\n\n\n
Information covered in the publication includes an overview\nof the different types of dry leases, the difference between dry and wet leases\n(which involve the provision of crewmembers), as well as how \u201coperational\ncontrol\u201d is determined, and how to maintain compliance when considering\nmaintenance, authorization and insurance requirements. It also includes 22\nfrequently asked questions that clearly and specifically address common causes\nof confusion for both operators and consumers.<\/p>\n\n\n\n