EU AND U.S. MOVE CLOSER TO AGREEMENT TO REMOVE WET-LEASE LIMITS
June 13, 2018
The European Union (EU) and the U.S. are making progress on an agreement to remove mandatory time limits for wet-leasing contracts after the European Council granted the European Commission permission to negotiate with its U.S. counterpart on this issue.
As background, the EU and the U.S. have disagreed over long term wet-leasing since 2008, when the EU imposed a once-renewable period of seven months for how long EU carriers could wet-lease aircraft from non-EU carriers. This action caused the U.S. to follow suit and impose similar limits on long-term wet-lease applications that were submitted to DOT. These limits were arguably contrary to a provision in the 2007 EU-U.S. Open Skies agreement which calls for an open wet-lease regime. The current negotiations are focused on restoring that provision.
In a statement approving the negotiations, the European Council stated: “Leasing an aircraft with its crew, known as ‘wet leasing,’ makes it easier for airlines to open new routes and to respond to, for example, seasonal demand for tourist destinations. Increased flexibility for aircraft operators brings wider choice and lower prices for customers.”
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com or 202-659-6622); Drew Derco (dderco@eckertseamans.com or 202-659-6665), or Alexander Matthews (amatthews@eckertseamans.com or 202-659-6633).
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