A power-by-the-hour contract is a type of agreement that provides a service or equipment to the customer for a specified time period at a fixed cost. Synonyms for this term include pay-per-use contract, usage-based contract, and service-level agreement. These contracts are commonly used in industries such as aviation, where airlines lease aircraft engines and pay for their use based on the number of flight hours. The advantages of power-by-the-hour contracts are cost predictability, reduced maintenance and repair costs, and improved asset management. By using these types of contracts, businesses can better manage their resources and focus on their core operations.