Charter managers range from individual aircraft to large international airlines that operate hundreds of aircraft. It is advisable to meet with more than one charter manager and receive offers before making commitments. Among the recommended questions of the survey are: When considering a charter management agreement, aircraft owners must carefully analyze the type of charter management agreement and the specific charter manager that will operate the aircraft. Compliance with FAA legislation, revenue generation, tax impact and insurance coverage are some of the most important components of the analysis. It is particularly important to determine the mark-ups or mark-ups that must be imposed by the charter manager, which may not be easily identifiable. The owner of the aircraft should inquire about these issues with appropriate legal and accounting advice in order to conduct productive discussions and negotiations with charter manager candidates. The management, operation and maintenance of a business aircraft is a complex and expensive undertaking. While some aircraft owners are able to hire experienced pilots and mechanics, a good charter manager provides additional resources in conjunction with maintenance monitoring, logistics and flight planning. As a charter customer manager, an owner can often use the purchasing power of the charter manager, which involves overheads such as fuel and insurance. FAA-certified charter managers can generate additional revenue for the owner by chartering the aircraft to third parties, and this will often allow an owner to charter other aircraft in the fleet at a discount. Once selected, the management company will present its standard management agreement (“MA”). In general, the AD will indicate how the aircraft and registrations must be kept, when the owner must authorize maintenance work, service charges, insurance requirements, and whether the owner chooses to authorize the management company to charter the aircraft.
I am fortunate to have the opportunity to work with a number of large management companies that have invested time and money in creating good MAs. Occasionally, however, I am asked to check a Mr.M. for a company I have never worked with, and I am sometimes shocked by what I find. Here is a list of some of the most important points you need to focus on when checking the MA: 1.02 AGENCY MATTERS. (a) This agreement exists only between BlackBird and CHARTERER and no agency relationship is established or contemplated. Neither party has the authority to act on behalf of the other party, to represent the other party or to the other party`s commitment under this agreement. (b) No passenger is considered a contracting party to this agreement or has no rights. (c) Each party guarantees that its respective signatory has the right to execute this agreement and thus binds the party concerned to the agreement. The airline makes the aircraft available to the charterer according to the schedule below and the charterer flies to the airline under the terms and conditions listed below and in the terms and conditions that are and are partially attached to this agreement. Operator`s name Part 135.
(CARRIER) makes available to charter traffic described below the general terms of sale that are part of this agreement, in accordance with the provisions below and the terms and conditions of sale added to it.