When it comes to managing aircraft, it is important to ensure that all parties involved are on the same page. This is where an aircraft management agreement comes into play.
An aircraft management agreement is a legal document that outlines the terms and conditions of the management services provided by an aircraft management company. This agreement is typically created between the aircraft owner and the management company, and it acts as a roadmap for the ongoing relationship between the two parties.
If you are in the process of creating an aircraft management agreement, it can be helpful to review sample agreements as a starting point. There are many different types of agreements available, and the one you choose will depend on the specific needs of your aircraft and your business.
To give you an idea of what to expect from an aircraft management agreement, we will walk through some of the key components of a sample agreement.
1. Parties Involved
The first section of the agreement should clearly state the parties involved. This will typically include the aircraft owner and the management company. It may also include any additional parties involved in the management of the aircraft, such as maintenance providers or pilots.
2. Scope of Services
The next section of the agreement should outline the scope of the services provided by the management company. This may include tasks such as maintenance scheduling, crew management, regulatory compliance, and financial reporting.
3. Compensation
The agreement should also include details on how the management company will be compensated for their services. This may include a flat fee, a percentage of revenue generated by the aircraft, or a combination of both.
4. Term and Termination
The agreement should specify the length of the agreement and under what circumstances it can be terminated. This may include termination for cause (such as breach of contract) or termination for convenience (at the discretion of either party).
5. Insurance
Finally, the agreement should address insurance coverage for the aircraft. This may include liability coverage, hull insurance, and any additional coverage required by law.
Overall, an aircraft management agreement is an important tool for ensuring that all parties involved in the management of an aircraft are on the same page. By reviewing sample agreements and customizing them to your specific needs, you can help ensure a successful and profitable relationship between the aircraft owner and the management company.
