Supplementary memorandum by Air 2000 (AS
06A)
WET LEASING
At the time Air 2000 gave evidence to the Transport
Sub Committee, Wednesday 21 June 2000, Mr Roberts indicated in
evidence that we are currently in discussion with an American
Carrier with regard to leasing an aircraft for the upcoming Winter
season: It may help the committee if we elaborate further on the
difficulties both we and our prospective client, the US carrier,
are having:
The US carrier wants to lease an aircraft to
increase its Winter capacity; they need to "wet lease"
because of a shortage of pilots, however the US lease regulations
prohibit US carriers from wet leasing foreign air carriers.
The alternative option is to "dry lease"
the aircraft to the US carrier, however they have insufficient
pilots so would be unable to crew the aircraft. We have looked
at the possibility of contracting UK pilots to the US carrier.
Here again we have been caught out on two fronts.
1. Potential US Pilot Union objections
2. The FAA requirement that any Pilots would
need to hold FAA licences, and that a full six week training course
for each pilot would be required. At a rough cost of £25,000
for each pilot, a number of whom have in excess of 10,000 hours
on type. This is not a cost effective option
The equivalent training and cost for an FAA qualified
pilot to convert to a UK CAA licence is three days conversion
training at approximately £2,000 per head.
Both parties are left in a catch 22 situation,
the US carrier needs additional capacity, but is prevented from
acquiring it as a dry lease due to Union and unreasonable FAA
requirements.
The aircraft cannot be offered "wet"
due to the US preventing its own carriers from wet leasing from
foreign carriers.
The reverse however does not apply, insofar
as any US carrier wishing to wet or dry lease to a UK carrier
would be able to, and do so with minimal regulatory impediment.
30 June 2000
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