What type of lease is characterized by short-term arrangements only?

The correct choice describes a wet lease, which is typically characterized by short-term arrangements where one party provides an aircraft to another party along with the crew, maintenance, and insurance. This kind of lease is common in the aviation industry, particularly for carriers who need to quickly expand their operations or fulfill temporary demand without the long-term commitment of purchasing their own aircraft.

Wet leases are preferred for flexibility and rapid adaptability in operations, making them ideal for airlines experiencing fluctuating passenger numbers or needing to cover for grounded aircraft. The arrangement allows the lessee to operate without the burdensome responsibilities of aircraft ownership.

In contrast, financial leases and operational leases often involve longer-term commitments. Financial leases typically lead to ownership over time, while operational leases do not transfer ownership and are structured for longer durations, often spanning several years. The damp lease is not a standard term in leasing contexts and represents a less commonly understood or utilized leasing strategy.