What Is Head Lease in Aircraft Leasing?
Head Lease defined for aviation professionals, with its operational or commercial use, document context and related terminology.
Technical Meaning and Practical Use
A head lease is the primary lease between the aircraft owner or lessor and a lessee that may subsequently sublease the aircraft to another operator.
Aviation Glossary
Term: Head Lease
Category: Aircraft Leasing & Finance
Where the Term Appears
Head Lease can appear in aircraft leases, loan agreements, security documents, appraisals, insurance provisions or closing deliverables depending on the transaction. The exact legal effect comes from the executed documents, governing law and the role of each party.
How It Affects the Transaction
The head lease normally controls whether subleasing is permitted and what consent, insurance and return obligations continue to bind the head lessee.
What to Review
Read the definition together with payment mechanics, default provisions, insurance, maintenance, return conditions, security and enforcement rights. A familiar label can have a different economic effect when the drafting or calculation method changes.
Related Aviation Topics
Related ACMI World coverage includes key terms in aircraft leasing contracts, business jet leasing, aircraft acquisition financing, cross-border jet lease terms and aircraft valuation and LTV.
The head lease normally controls whether subleasing is permitted and what consent, insurance and return obligations continue to bind the head lessee.
Head Lease FAQ
What does Head Lease mean in aviation?
A head lease is the primary lease between the aircraft owner or lessor and a lessee that may subsequently sublease the aircraft to another operator.
Why does Head Lease matter?
The head lease normally controls whether subleasing is permitted and what consent, insurance and return obligations continue to bind the head lessee.
Where would an aviation professional encounter Head Lease?
It is commonly encountered in aircraft leasing & finance documents, procedures, calculations or operating discussions where the underlying technical or commercial issue is relevant.
Does the term have the same meaning in every aircraft finance document?
No. Market terminology is useful shorthand, but the executed agreement controls. Defined terms, calculation methods, governing law and transaction structure can change the result.