Which is a gross lease traditionally for aircraft or marine vessels in which the lessor provides bundled services such as the payment of property taxes, insurance, maintenance costs, and provisions necessary to operate the craft (e.g., personnel, fuel, etc.)?

Which is a gross lease traditionally for aircraft or marine vessels in which the lessor provides bundled services such as the payment of property taxes, insurance, maintenance costs, and provisions necessary to operate the craft (e.g., personnel, fuel, etc.)?

• A. Chattel
• B. Cross Border Financing
• C. Service Lease
• D. Wet Lease

Answer: (D)

This item is about a full-service leasing arrangement for aircraft or ships, where the owner provides the asset plus the operating services needed to run it. In a wet lease, the lessor furnishes the craft, the crew, maintenance, and insurance, and often fuel and other provisions as part of the package. Because the operating costs are bundled into the lease, the lessee essentially pays one all-inclusive rent—similar to a gross lease for these high-usage assets. The other terms don’t describe this all-in, crewed-and-supported setup: chattel refers to personal property, cross-border financing is a financing structure, and the term service lease isn’t the standard description for this bundled, operating-leases arrangement.

This item is about a full-service leasing arrangement for aircraft or ships, where the owner provides the asset plus the operating services needed to run it. In a wet lease, the lessor furnishes the craft, the crew, maintenance, and insurance, and often fuel and other provisions as part of the package. Because the operating costs are bundled into the lease, the lessee essentially pays one all-inclusive rent—similar to a gross lease for these high-usage assets. The other terms don’t describe this all-in, crewed-and-supported setup: chattel refers to personal property, cross-border financing is a financing structure, and the term service lease isn’t the standard description for this bundled, operating-leases arrangement.