WET-LEASING
FAULTS, FLAWS, CALL TO ACTION
What is wet-leasing?
Wet-leasing, also known as ACMI (Aircraft, Crew, Maintenance, and Insurance) leasing, has become a common industry practice where airlines lease aircraft and accompanying crews from other carriers. Wet-lease is a usual response of air carriers to the busy seasons when they lack enough aircraft and crew to operate their flights.
While the practice of wet leasing is legal, it can also be misused to cut costs and undermine labour and social rules. For example, wet-leasing providers often use self-employed crew or intermediaries that are not registered in the EU. This practice allows wet-leasing providers to bypass existing employment rules. The passenger feedback also indicates dissatisfaction with the experience of flying on older aircraft and the lack of control over their airline choice.
PROBLEM?
Since 2022, ECA has conducted a summer analysis of inter-country wet leasing in Europe. An ECA team monitored aircraft on Flight Radar to cover the entire region. Unfortunately, we’ve noticed a concerning trend: a steady increase in wet lease agreements, both in the number of airlines participating and the countries involved.
The dashboard exclusively focuses on depicting cross-border mobility through wet-leasing between different countries. The tracking was done at the beginning of the summer season 2024, and will be repeated at the end of the season.
In terms of bases, a change of base and wet lease is considered if an aircraft operates continuously from one base for at least two weeks, both commencing and concluding its duties there.
Sometimes, companies agree to wet lease a total number of aircraft of a specific type, without defining the registration numbers of aircraft in the contract (e.g. Finnair, AirBaltic). Due to the fact that FlightRadar is based on registration number of aircraft, and possible rotation of aircraft during the observation period, the dashboard may sometimes show higher number of aircraft and crew as posted within provider-user agreements.
If you are one of the pilots affected by wet-leasing, reach out to us!
How is wet-leasing problematic?
Several examples.
Rise of self-employment
ECA has found that some airlines are hiring self-employed pilots through contracts with intermediary or staffing agencies. These agencies then supply pilots to the airlines. The use of self-employed contracts is spread further by wet-lease agreements. A recent analysis of the terms for self-employed pilots was included in the Norwegian Civil Aviation Authority's decision regarding flight operations by DAT in Norway: “in its nature, the agreements are characterized by and largely consists of terms that must be considered to represent an employment relationship”.
Strike breaking
A few years ago, the Spanish government authorised the wet-leasing of 2 Alba Star aircraft to the airline Volotea during an industrial conflict in France. It is highly likely that the Spanish government was unaware of the ongoing industrial action and became, without knowing, an essential contributor to an illegal strike-breaking.
Potential negative effect on safety
According to the research of the Department of Clinical Neuroscience of Karolinska institute, “contextual factors such as direct employment, a minimum guaranteed pay, just culture, and support from colleagues and managers appear to have a positive influence on pilots’ inclination to approach Pilot Peer Support Programs”. Moreover, “pilots with typical employment types and minimum guaranteed pay were more inclined to approach PPSP”. This results in the fact that pilots with atypical contracts, such as work through intermediaries/self-employed contracts, are less likely to approach Pilot Peer Support Programs. This affects negatively occupational health and safety, which directly affects the safety on board.ip”
Call to action
This all results in the fact that employees usually don’t know who their contracting parties are and who is the legal employer, which is the violation of the provisions of Directive on transparent and predictable working conditions.
The aircrew on wet-lease is usually not declared posted (because posting stems from employment relationship) and are not provided with A1 certificates. If the crew does not have employment contracts, it is harder to claim the application of the laws of the host State and demand observance of their employees' rights. For the protection of the rights of aircrew we need:
- Relevant national legislation implementing the Enforcement Posting Directive;
- Employment relationship (which is often missed in some airlines);
- Posting rules fulfilled;
- The employee having no fear of reprisal to sue the company.
We strongly encourage Member States to carry out inspections of airports this summer. We call on them to review employees' documentation, including their rosters, A1 certificates, employment contracts, home bases, and other relevant materials. This information will be the evidence of whether the wet-lease rules and posting rules are applied and duly observed, and whether the aircrew is duly protected during the hectic summer season.
Are you a pilot on wet-lease?
CHECK YOUR RIGHTS!
Photo by Scott Graham on Unsplash
Photo by Scott Graham on Unsplash
CONTRACT
Know the conditions of your contract. There can be two possibilities:
1. You have employment contract. If you are sent to fly on a continuous basis for another airline, the posting rules are applicable to you. You shall be granted A1 certificate and the rules of the host country regarding work and rest periods, remuneration and social security shall be applicable to you.Please note, if you have employment contract with an airline, but you fly for a long period for another airline (e.g. 1 year), please consider contacting us for detailed advice. You might consider asking for direct employment from the host airline.
2. You have self-employed contract. First, avoid this situation! No matter how your payment is done, you still fly under subordination and control of one airline. The shifting of liability on pilot for the operation/incidents, which is done in self-employed contracts, is illegal! Ask the company/work agency, that you provide services for, to change your contract. Please, contact us in case you are in this situation! Be aware that the country where you are posted might re-classify your employment relation into direct employment. Self-employed workers also have obligations when carrying out work temporarily or partially as non-local self-employed workers, check the posting requirements for self-employed where you will be posted.
Photo by Tingey Injury Law Firm on Unsplash
Photo by Tingey Injury Law Firm on Unsplash
LAW
Know the law applicable to you.
You shall be always assigned a home base. In case of multiple jurisdictions involved (you are resident of country A, flying for airline based in country B, sent on a wet-lease to airline based in country C, flying an aircraft stationed in country D), usually the rule of your home base will be applicable: the place where you start and finish your duty. In case there’s no specific home base and you cannot see the pattern in operations you fly, please consider contacting us for advice.
Photo by Mark König on Unsplash
Photo by Mark König on Unsplash
REPORT
Always report
Always report fatigue, bad management practices, abuses. We know pilots are afraid of repercussions at present and even future workplaces, but your reporting and rigorous taking care of yourself can help to maintain safety on board and stop the spread of social abuses.
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