If you’re looking to hire an aircraft management company to manage your aviation assets, it’s essential that you have a simple aircraft management agreement in place. This agreement outlines the terms and conditions of your relationship with the management company, protecting both parties and ensuring a smooth, mutually beneficial partnership. In this article, we’ll discuss what a simple aircraft management agreement is and what it should include.
What is a Simple Aircraft Management Agreement?
A simple aircraft management agreement is a legal document that outlines the responsibilities and expectations of both parties involved in the management of an aircraft. This agreement typically covers the following aspects:
1. Aircraft Management Services: The agreement should outline the scope of services provided by the management company. This covers everything from routine maintenance and scheduling to pilot management and regulatory compliance.
2. Compensation: The agreement should detail how the management company will be compensated for their services. This may include a flat fee, commission-based fees, or a combination of the two.
3. Term of the Agreement: The duration of the agreement, along with agreed upon cancellation terms, should be clearly defined in the contract.
4. Insurance Requirements: The agreement should require that the management company maintains appropriate insurance coverage for the aircraft.
5. Dispute Resolution: In the instance of a dispute, the agreement should outline the process for resolving any issues that may arise.
What Should be Included in a Simple Aircraft Management Agreement?
When drafting a simple aircraft management agreement, there are several essential components that should be included:
1. Parties Involved: The names and contact information for both parties involved in the agreement should be included in the contract.
2. Aircraft Information: Detailed information regarding the aircraft, including make, model, and serial number, should be listed in the agreement.
3. Payment Terms: The payment terms should be clearly defined, including the frequency of payments and the amount due.
4. Termination Clause: The agreement should include a clear termination clause, outlining the process for termination and any applicable fees or penalties.
5. Indemnification: The agreement should outline each party’s responsibility for any damages that may occur. Indemnification language should protect both parties from liability for damages that may occur.
A simple aircraft management agreement is essential for any aircraft owner looking to hire a management company. This agreement outlines the expectations and responsibilities of both parties, ensuring a smooth partnership that benefits all involved. When drafting a management agreement, it’s essential to include the above components to protect both parties and establish a clear agreement.