The Basics of Leasing a Private Jet for Long-Term Use

For frequent travelers, a jet lease is an attractive option. You’ll avoid the large upfront costs associated with buying an aircraft while enjoying the perks of private flights. 

Here’s what you need to know about long-term jet leasing:

Private Jet Lease Options to Consider

The Federal Aviation Administration (FAA) regulates aircraft leases. As the National Business Aviation Association explains, the FAA offers two different lease classifications. The role and availability of staff separate them. 

Dry Lease 

In a so-called dry lease, the arrangement involves the jet itself. The person who accepts the lease is responsible for everything else. The purpose of this lease is to transfer operational control to someone capable of handling aircraft operations.  

These leases typically include the aircraft and basic operating costs only. The person with the lease has full operational control over the jet. That means they can decide when and where the airplane flies and who comes along on the trip. 

Some risks are involved, as the National Business Aviation Association explains. The lessee is responsible for complying with laws and regulations. Violations can lead to FAA fines and lawsuits, especially if the flight causes injuries or damage. 

Wet Lease 

A wet lease involves the vessel and at least one crew member. The FAA says this type of lease should keep the aircraft under the operational control of the jet’s owner. 

In a typical wet lease agreement, the jet’s owner is responsible for fees associated with maintenance, insurance, and crew members. The person who signed the lease pays for things like fuel, airport fees, and operational costs. 

A wet lease is a good choice for people who fly only occasionally and don’t want the hassle of finding and retaining crews. However, this option tends to come with higher upfront costs than a dry lease. 

Cost of Private Jet Leasing – Industry Averages

How much should you budget for a typical jet lease program? The fees you’ll face can vary depending on the type of plan you choose.

This table can help you understand the key differences: 

Cost category	dry lease	wet lease
Lease payment	$50,000 to $150,000 per month	$100,000 to $500,000 per month
Security deposit	1 to 3 months of lease payments	1 to 3 months of lease payments
Insurance	$20,000 to $200,000 yearly	Included
Crew salaries	$250,000 to $600,000 per year	Included
Fuel	$300 to $700 per flight hour	Included
Maintenance and repairs	$100,000 to $500,000 per year	Included
Hangar and parking fees	$2,000 to $15,000 per month	Included
Landing and handling fees	$500 to $5,000 per landing	$500 to $5,000 per landing

Benefits of Leasing a Private Jet 

A jet lease program can be a smart option for people who want a luxurious flight experience without the typical costs and concerns that come with full aircraft ownership. Here are a few more reasons to consider leasing: 

Lower Upfront Costs 

A typical private jet comes with a price tag in the millions. If you purchase the aircraft outright, you’ll need at least some of that money to close the deal. 

A lease comes with a much smaller upfront fee. That means you can secure regular access to an aircraft without draining other assets and reducing your liquid capital. 

Fewer Financial Surprises 

Owning an aircraft also means paying for unexpected repairs and breakdowns. Depending on the lease structure you choose, your monthly payment could cover these problems. Budgeting is much easier when you don’t have to save up for surprises. 

Lower Depreciation Risks 

Aircraft can lose value at the moment of sale. By leasing, you’re not accepting full control of the jet, so those depreciation costs don’t end up on your balance sheet. For some investors, this is an incredibly attractive aspect of leasing. 

Access to New Aircraft 

A lease allows you to tap into some of the hottest new aircraft on the market. When your lease expires, you can upgrade to the latest model without going through the hassle of selling your old version. On the date your new lease takes effect, you can take off in your new jet.

Ownership Experimentation 

Some types of leases are designed with convenience in mind. If you’re new to jet travel, you may not know how to hire a crew or deal with technical issues like jet fuel pricing. A lease lets you learn while you travel. You may decide to invest in an aircraft later. 

Private Jet Leasing vs. Other Options

A private jet lease is a good option, but it’s not your only one. Below, you will find information on how jet leasing compares to your other choices.

Private Jet Leasing

• What is it?: A type of agreement granting exclusive access.
• Upfront cost: Moderate.
• Ongoing costs: Lease payments (and crew, fuel, maintenance in some types).
• Commitment length: Typically, 1 to 5 years.
• Access to aircraft: Full access.
• Flexibility: Can change aircraft at lease renewal.
• Depreciation risk: None.
• Operational control: Depends on lease type.
• Ideal for: Frequent travelers wanting consistency without ownership responsibilities.

Full Ownership

• What is it?: A purchase of an aircraft.
• Upfront cost: Very high.
• Ongoing costs: High (all costs associated with the aircraft and crew).
• Commitment length: Long term.
• Access to aircraft: Full access.
• Flexibility: Must sell aircraft to change.
• Depreciation risk: High.
• Operational control: Full.
• Ideal for: Financially secure individuals who need full control.

Jet Card Membership

• What is it?: An agreement to rent multiple types of aircraft.
• Upfront cost: Low.
• Ongoing costs: Medium (hourly rates and membership fees).
• Commitment length: Flexible.
• Access to aircraft: Limited to program aircraft.
• Flexibility: Flexible fleet options.
• Depreciation risk: None.
• Operational control: None.
• Ideal for: Frequent flyers who want predictable pricing without ownership.

Fractional Ownership

• What is it?: Shared ownership of the same aircraft with other individuals.
• Upfront cost: High.
• Ongoing costs: Medium (monthly management fee and hourly rates).
• Commitment length: 3 to 5 years.
• Access to aircraft: Shared access.
• Flexibility: Limited to specific aircraft category.
• Depreciation risk: None.
• Operational control: Partial.
• Ideal for: People who fly often who want partial ownership of a jet.

On-Demand Charter

• What is it?: Renting an aircraft for one flight only.
• Upfront cost: None.
• Ongoing costs: None (flight costs only).
• Commitment length: None.
• Access to aircraft: Varies.
• Flexibility: Highly flexible.
• Depreciation risk: None.
• Operational control: None.
• Ideal for: Occasional flyers.

What to Consider Before Leasing a Private Jet

The National Air Transportation Association explains that aircraft leases are critical for consumers in the United States. However, it’s important that everyone understands what the lease does and does not cover. Here are a few important items to consider before you lease a private jet: 

Lease Duration & Terms 

Lease lengths can vary from a few months to a few years. The dates should be clearly marked and easy to understand. 

Longer leases tend to be less expensive than shorter versions. Owners typically give lessees a break on the price in return for an agreement that lasts a long time. 

Usage Restrictions 

Deep within the terms of the lease, rules and restrictions may appear. Often, these sections of the contract dictate how you can use the aircraft. 

Common clauses involve how frequently you can use the jet and how long it can be in the air. Your contract may also have rules about the length of each flight. Make sure you understand all these regulations beforehand, so you aren’t surprised down the road.

Costs & Fees 

Your contract may include a list of costs that you’re responsible for as part of the lease.

Look for fees associated with the following:

• Monthly lease payments
• Insurance premiums
• Fuel costs 
• Crew salaries 

Ensure that no costs are hidden before you make a final decision. 

Regulatory Compliance 

The rules and regulations you must follow depend on the type of jet lease you signed. The FAA is deeply concerned with who has operational control of the aircraft. 

If you have a dry lease, you maintain operational control and must maintain the aircraft per the FAA regulations. That means you need insurance coverage, you’ve registered the plane, and more.

If you have a dry lease, you do not have operational control. However, you must ensure that the person you’re leasing the aircraft from has followed all the applicable FAA rules. 

How to Lease a Private Jet in 6 Steps

It’s easy to get started with an aircraft lease.

The following steps are typically required:

1. Finalize lease agreements. 
2. Determine your budget and how often you’ll travel. 
3. Choose between a dry and a wet lease. 
4. Research potential partners for your lease. 
5. Select a partner, and choose an aircraft. 
6. Negotiate lease terms and sign the paperwork. 

Still Deciding Between Leasing & Chartering a Private Jet?

A private jet is an exceptional investment in luxury travel. However, you have several options available to access a private jet regularly. 

At Element Aviation, we can help you make the right choice. Contact us to learn more about how to buy, sell, and charter a private aircraft.

We do it all and can help you determine the best solution for your needs. We’re ready to help you today.