A crewed lease means that the organization or person who owns the aircraft makes the aircraft, as well as one or more crew members, available to the lessee. Most importantly, the owner also promises to carry out proper maintenance and take out the necessary insurance for the operation. 14 CFR 110.2 defines a “crewed lease” as “any lease agreement in which a person agrees to provide an entire aircraft and at least one crew member.” (Don`t pay attention to any reference to fuel.) Generally, parties entering into air-lease agreements are certified air carriers, such as airlines operating under Part 121 of 14 CFR and charter operators operating under Part 135 of 14 CFR. However, 14 CFR 91.501(c) provides for certain timeshare and exchange agreements in which the aircraft and crew are united. And while these agreements are considered crewed leases because they include both aircraft and crew, they are 14 CFR Part 91 operations where the parties to the transactions don`t necessarily have to be air carriers. In the United Kingdom, the carry-over period normally does not exceed seven months. However, it is possible to extend this dry lease term up to an additional five months, i.e. a maximum of 12 months in total for the dry lease contract. Airlines that can`t afford good deals with direct factory aircraft, or airlines that prefer to maintain flexibility, can lease their aircraft with an operating lease or finance lease. Despite the bankruptcies of Air Berlin and Monarch Airlines, their leased aircraft were quickly placed at “normal market prices” due to traffic growth, while the number of global passenger-kilometres increased by 7.7% year-on-year from September 2017 and Airbus is struggling to deliver A320s due to delays in engine supply.  The global crewed leasing market is expected to grow from $7.35 billion in 2019 to $10.9 billion in 2029, representing a CAGR of 4.1%. To avoid an illegal “dry lease sham” between the parties, it is important that the lessor does not provide or even arrange pilots for a lessee to use the aircraft.
The FAA has determined that if the lessor (or a related entity) employs the pilots hired by the lessee, it is in fact a crewed lease. If the aircraft an operator wishes to provide is leased by a financial institution or an independent party, the operator requires the authorization of the “primary lessor”. Jet leases accounted for less than 2% of the fleet in 1976, followed by 15% in the early 1990s, 25% in 2000 and 40% in 2017, with lessors involved in 62% of mid-life used aircraft transactions since 2000: 42% in Europe and 29% in North America.  In 2015, more than $120 billion in commercial aircraft were delivered worldwide, and half of the world`s donors were based in Ireland.  In the United Kingdom, there is a crewed lease when an aircraft is operated under the lessor`s Air Operator`s Certificate (ACO).  An agreement in which the lessor provides the aircraft, flight crew and maintenance, but the lessee provides the cabin crew, is sometimes referred to as “crewed leasing”, a term used particularly in the United Kingdom. It is also sometimes called a “crewed lease”.  In the United Kingdom, there is a dry lease when an aircraft is operated under the Lessee`s AOC.  Sometimes aircraft owners lease their aircraft to maximize the use of the aircraft and to cover a portion of their expenses […].