US, EU, Norwegian and Iceland officials agree wet lease agreement

Darren Wood
By Darren Wood September 6, 2019 09:37

US, EU, Norwegian and Iceland officials agree wet lease agreement

Officials in the US, EU, Norwegian and Iceland have signed an agreement that levels the competitive playing field for US air carriers seeking to wet lease to European carriers. 

The agreement marks the end of a long-standing commercial concern for U.S. carriers, and restoration of their ability to participate on fair terms in the market for “wet lease” services. 

DOT Deputy Assistant Secretary for Aviation and International Affairs, David Short, signed the agreement for the United States.

A wet lease is a commercial arrangement whereby one air carrier rents out its airplanes and crews for use by another carrier.  These types of leases can represent an important revenue source to the carrier providing the aircraft and crews.

European Community (EC) regulations (which are also applied by Norway and Iceland) for years severely limited US carrier ability to wet lease to EU carriers.  At the same time, EU carriers faced no such limitations under DOT regulations when providing aircraft and crew either to each other or to US carriers.

DOT, along with other U.S. Government agencies, took a number of steps in an effort to resolve the problem, and today’s signing represents a successful culmination of those efforts.  The agreement removes the limitations that had been imposed on U.S. carriers by the EC regulations.  U.S. carriers will now be able to compete fairly in the marketplace, more broadly offering their services in worldwide markets, and gaining a valuable chance to benefit from the new commercial opportunities.

Darren Wood
By Darren Wood September 6, 2019 09:37