Who Pays Overflight Charges in an ACMI Wet Lease?
In an ACMI wet lease the airline pays overflight charges, but Eurocontrol and other navigation authorities bill the aircraft operator, often the lessor. Who pays what, why the invoice lands where it does and what to put in the contract.
ACMI Wet Lease Costs Explained: Why the Airline Pays Overflight Charges but the Lessor Often Gets the Bill
In an ACMI wet lease, the lessee airline pays overflight charges. The lessor supplies aircraft, crew, maintenance and insurance, and the lessee covers what Air Partner describes as fuel, airport and overflight charges, plus any duties and taxes. The catch is that navigation authorities usually invoice the operator of the aircraft, which in a wet lease is the lessor, so the money often flows through the lessor first.
The overflight split at a glance
Why the invoice can land on the lessor
Under Eurocontrol's Multilateral Agreement, the party liable for route charges is whoever operated the aircraft when the flight took place. Eurocontrol's billing conditions add that the ICAO designator or other flight identification can be used to identify the operator. A wet-leased aircraft flies on the lessor's AOC, often under the lessee's flight number, so the bill can go either way depending on how the flight plan is filed.
Who pays what in an ACMI wet lease
| Cost item | Typically paid by | Notes |
|---|---|---|
| Aircraft, crew, maintenance, insuranceThe "ACMI" | Lessor | Priced into the block-hour rate |
| Overflight and route chargesIncl. Eurocontrol | Lessee | May be invoiced to the lessor and recharged |
| Fuel | Lessee | Supplied directly or reconciled against burn |
| Landing, parking, terminal charges | Lessee | Airport invoices follow the same operator logic |
| Ground handling, permits, de-icing | Lessee | Lessee usually contracts handlers directly |
Costs vary by contract, so check the split against our breakdown of Boeing 767-300F wet lease costs and terms, the approval rules in our wet-lease regulations guide, and what happens to unpaid recharges in our note on ACMI provider failure.
Frequently asked questions
Who pays overflight charges in an ACMI wet lease?
The lessee airline pays them economically. Under a standard ACMI contract the lessor supplies aircraft, crew, maintenance and insurance, while the lessee covers fuel, airport charges and overflight or route charges. Because air navigation authorities usually bill the aircraft operator, the lessor may receive the invoice and recharge it to the lessee.
Why does Eurocontrol bill the ACMI lessor instead of the airline?
Eurocontrol's route charges rules make the operator of the aircraft at the time of the flight liable to pay. In a wet lease the lessor operates the aircraft on its own AOC, so it can be treated as the operator unless the flight identification points to the lessee. The contract should say who is billed and how recharges are settled.
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