Why Pakistani Airlines Going Towards Wet-Lease Operations

Recently, 2 major local Pakistani Airlines, AirSial, and SereneAir have started using wet-lease aircraft for their operations. According to the National Aviation Policy of Pakistan, the definition of a Wet-Lease is”

A wet-lease is a leasing arrangement whereby one air service operator (lessor) provides an aircraft, complete crew, maintenance, and insurance (ACMl) to an air service operator or other type of business acting as a broker of air travel (the lessee) which pays by hours operated” The lessee provides fuel and covers airport fees’ and any other duties taxes, etc.

In December 2024, AirSial acquired Boeing 737-800 registered TC-TLI from Tailwind Airlines in Antalya, Turkey, and in Feb 2025 Serene Air acquired two A320s with registration 9H-GTS and LY-NOW. Recently, AirSial’s 6th Airbus A320 registration AP-BPF arrived to join its fleet of A320s.

Reason: The demand for air travel peaks during the month of Ramadan and for HAJJ operations, that would be a reason for Airsial and SereneAir to get new aircraft on wet lease.

Why Airlines Choose Wet-Lease Aircraft

There are multiple factors for airlines to choose wet-lease operations in which most common are:

Economic Factors

The demand for air travel does not remain constant rather it rises and falls around the year. The demand for airlines is seasonally based. When the demand for air travel increases especially during holiday seasons, then airlines add more aircraft to their fleet on wet lease. It enables airlines to increase their capacity during peak demand periods without committing to long-term fleet growth.

Operational Factors

The lessor has all the responsibilities related to ensuring smooth operations while adhering to safety standards by providing an experienced crew that includes, pilots, cabin crews along maintenance personnel. This way airlines avoid the lengthy process of acquiring new aircraft, recruiting and training staff, and obtaining regulatory approvals.

Cost-Effective

Wet leasing reduces the need for large initial investments when acquiring or financing a new aircraft. Airlines pay a fixed hourly or monthly charge that covers all related costs like crew salaries, maintenance, and insurance.

Better Risk Management and Regulatory Compliance

The lessor undertakes the majority of the risks and responsibilities connected with aircraft operation and maintenance, while the lessee receives suitable insurance coverage. The lessor also guarantees that the aircraft and crew adhere to the regulatory and safety norms of the applicable authorities and jurisdictions. The lessee can avoid any legal or financial complications that may occur as a result of owning or operating the aircraft while adhering to the wet lease’s contractual and operational conditions.

Greater Flexibility and Convenience

The lessee can select the kind, size, and configuration of the aircraft that best meets its needs, without being constrained by its fleet availability or specifications. The lessee can also change the duration and frequency of the wet lease based on demand and market conditions, without being bound by a long-term commitment. The lessor can offer the aircraft and personnel on short notice while also handling any operational or technical concerns that may occur. This allows the lessee greater control and flexibility over its operations.

Conclusion

Keeping the necessity of operational needs airlines make decisions according to the rules and regulations set by the regulatory bodies. So, this is the case with Pakistani Airlines SereneAir and AirSial which are exponentially growing leading towards the purchasing of new aircraft on wet lease to fulfill the passenger demand.

References

1. Lundaeva, K. A., Saranin, Z. A., Pospelov, K. N., & Gintciak, A. M. (2024). Demand Forecasting Model for Airline Flights Based on Historical Passenger Flow Data. Applied Sciences, 14(23), 11413. https://doi.org/10.3390/app142311413