Lion Airline (Customer) enters a 3-year contract with an aircraft owner, Jumbo Ltd (Supplier). Every Monday, Wednesday, Friday, Saturday, and Sunday Jumbo will exclusively transport passengers of Lion Airline from Sydney to Adelaide at 10 am and at the same day from Adelaide to Sydney at 6 pm. The type of aircraft isspecifiedbyLionAirline.JumboLtdownsmorethanoneaircraftofthistype.Jumbo is permitted to substitute the aircraft at any time during the contract period and must substitutetheaircraftifitisnotworking.Furthermore,Jumboisresponsibleforoperating theaircraft,usingitsowncrew.ThecontractrequiresLionAirlinetomakemonthly fixed payments to Jumbo Ltd as well as variable payments that are a percentage sale derived from sale of airtickets.

Requirement

Does the contract between Lion Airline and Jumbo Ltd contain a lease? Refer to AASB16 Leasesin your response.