Which lease type provides operating services, such as crew and insurance, and keeps ownership with the lessor?

Which lease type provides operating services, such as crew and insurance, and keeps ownership with the lessor?

• A. Operating/Wet Lease
• B. Dry Lease
• C. Capital Lease
• D. Synthetic Lease

Answer: (A)

Think about who provides the day-to-day operations and who owns the asset. In a wet/operating lease, the lessor supplies not only the aircraft but also the operating services—crew, maintenance, and insurance. The aircraft remains owned by the lessor, while the lessee uses it under a service arrangement. This setup fits the description of receiving operating services while ownership stays with the lessor. A dry lease, by contrast, provides only the aircraft; the lessee must supply crew and other operating needs, and ownership typically remains with the lessor without a bundled service arrangement. A capital (finance) lease is treated like a financed purchase, with the lessee assuming many ownership-like risks and rewards and often eventual transfer of ownership, not the ongoing operating-services focus described. A synthetic lease is a financing structure designed mainly for balance-sheet treatment, not for supplying ongoing operating services or keeping ownership with the lessor in the practical sense. So the scenario described matches the wet/operating lease.

Think about who provides the day-to-day operations and who owns the asset. In a wet/operating lease, the lessor supplies not only the aircraft but also the operating services—crew, maintenance, and insurance. The aircraft remains owned by the lessor, while the lessee uses it under a service arrangement. This setup fits the description of receiving operating services while ownership stays with the lessor.

A dry lease, by contrast, provides only the aircraft; the lessee must supply crew and other operating needs, and ownership typically remains with the lessor without a bundled service arrangement.

A capital (finance) lease is treated like a financed purchase, with the lessee assuming many ownership-like risks and rewards and often eventual transfer of ownership, not the ongoing operating-services focus described.

A synthetic lease is a financing structure designed mainly for balance-sheet treatment, not for supplying ongoing operating services or keeping ownership with the lessor in the practical sense.

So the scenario described matches the wet/operating lease.