Leasing vs. Buying - Have you been considering buying an aircraft recently? Are you unsure about taking on that type of financial commitment? Consider: buying isn’t your only option. Pilots are opting to dry lease their aircraft instead from owners looking to expand their business use of the plane. When you lease an aircraft you are receiving a transfer of possession of the aircraft without receiving title. The lessor retains the title of the aircraft and therefore bares the burden of potential devaluation and the ongoing costs of ownership. The lessee remains liable for any negligent operation of the plane or damages to it unless the lease agreement provides otherwise. It’s very important to check with your attorney and insurance provider on liability issues before you sign a lease agreement to make sure all of your bases are covered. If you are an owner-lessor, you can require your lessee to purchase trip insurance for his flight, or, if he’s a regular customer, add him as an additional insured to your policy. A minefield to be aware of is the difference between “wet” and “dry” leases, and whether the owner can receive compensation. In broad terms Part 91 of the federal aviationRead more →