If you're new to private aviation, "dry lease" and "charter" can sound like two names for the same thing: you get on an airplane you don't own and you fly somewhere. To the FAA, though, they're worlds apart — and the difference determines who's legally responsible for the flight, what rules apply, and whether the operation is even legal. Here's the plain-English version.
Start with operational control
Everything hinges on a concept called operational control. The FAA defines it (14 CFR § 1.1) as the authority over "initiating, conducting, or terminating a flight." Whoever holds operational control is ultimately responsible for the safe, legal conduct of that flight — the go/no-go decision, the crew, the maintenance, the insurance, the whole picture.
In a charter, the operator holds operational control and carries you as a passenger for hire. In a dry lease, you hold operational control. You're not a passenger buying a seat; you're the operator renting an aircraft.
The deciding factor: who provides the crew
Here's the cleanest way to tell them apart. In a dry lease, the lessor provides the aircraft only. You bring your own crew, your own insurance, and you operate under Part 91 (the rules for private, non-commercial flying). Think of it like renting a car: the rental company hands you the keys; you do the driving.
The moment the party providing the aircraft also provides a crewmember, it's no longer a dry lease — it's a "wet lease," which the FAA treats as a commercial operation that requires a Part 135 air-carrier certificate. That's a charter. The crew is the switch that flips the whole thing from private to commercial.
Why the FAA cares
Part 135 exists to protect paying passengers. Charter operators must hold a certificate, meet stricter training, maintenance, and duty-time rules, and carry specific insurance. When someone dresses up a charter as a "dry lease" to skip those requirements — often by quietly supplying both the airplane and the pilots — the FAA calls it an illegal charter, and the penalties are real for the operator and sometimes the pilots.
What a legitimate dry lease looks like
A properly built dry lease keeps you clearly in control:
- A written lease that states operational control rests with you.
- Crew that you hire and pay — never selected, scheduled, or paid by the lessor.
- Your own insurance, or named coverage that recognizes your operational control.
- A lease rate that's a rental for the equipment, not priced like a charter ticket.
That's exactly how we structure things at Palm Aero: we provide the aircraft, and we can share a list of independent pilots in the area who fly the type — pilots you choose, hire, and pay directly (your insurer sets the qualification bar) — or you bring your own. We never provide the crew, which is what keeps your operation a true dry lease rather than a charter.
The bottom line
Charter is a service — someone flies you. A dry lease is access — you operate the airplane yourself. If a "dry lease" comes bundled with pilots from the same source, be skeptical. A real one leaves you firmly in the left seat of responsibility.
This article is general information, not legal advice. Confirm any specific arrangement with qualified aviation counsel. See our Dry Leasing page and FAQ for more.