Which lease is also referred to as a full-service lease?

Which lease is also referred to as a full-service lease?

• A. Service Lease
• B. Bundled Lease
• C. Wet Lease
• D. TRAC lease

Answer: (B)

A full-service lease means the lessor provides not only the asset but also the ongoing services and operating costs tied to it, all bundled into one fixed payment. The term that describes this arrangement is Bundled Lease, because the lease payment covers both the asset’s use and the associated services (maintenance, upkeep, and sometimes related costs) in a single, predictable package. Wet lease is an aviation-specific arrangement where the lessor provides the aircraft along with crew, maintenance, and insurance, which is a different context. A TRAC lease involves a residual risk or price adjustment at the end of the term, not the bundled service concept. A service lease isn’t the standard label for the full-service, all-inclusive arrangement.

A full-service lease means the lessor provides not only the asset but also the ongoing services and operating costs tied to it, all bundled into one fixed payment. The term that describes this arrangement is Bundled Lease, because the lease payment covers both the asset’s use and the associated services (maintenance, upkeep, and sometimes related costs) in a single, predictable package.

Wet lease is an aviation-specific arrangement where the lessor provides the aircraft along with crew, maintenance, and insurance, which is a different context. A TRAC lease involves a residual risk or price adjustment at the end of the term, not the bundled service concept. A service lease isn’t the standard label for the full-service, all-inclusive arrangement.