What is Aircraft Charter Agreement ?

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Aircraft Charter

Published
June 8, 2021

Aircraft Charter Agreement

When it comes to air transport, there are two main types of operations conducted by airlines, scheduled and non-scheduled operations. Another name for non-scheduled flights is chartered flights. When an aircraft is hired for charter, the operator’s entire aircraft is at the customer’s disposal. When a customer charters an aircraft for a single flight or a series of flights, they in effect book the entire capacity of the aircraft to perform flights over certain routes at a given date. The key difference between a charter and a scheduled operation is the flexibility, the customer chooses the route and the date for the flight. With an aircraft charter agreement, the operator is responsible for all operational expenses, this includes:

 

Fuel expenses

Handling, landing, navigation and other airport expenses

Passenger taxes, duty, customs and immigration charges

Catering, flight planning, insurance expenses

 

This type of agreement is best suited for one-off flights or a series of flights over a short-term period, usually 1-2 months. There are several customer groups that regularly charter, including:

 

Travel agencies

Utilize the charter model to facilitate air transport for their customers during seasonal demand.

Airlines

Make use of charters to either cover capacity shortfalls during peak demand for both passengers and cargo or conduct one-off flights that aren’t a part of their scheduled routes.

Event Organizers

Charter to transport attendees to various large corporate events around the world.

Individuals

Charter aircraft for their personal air transport.

 

The standard commercial format for this type of agreement involves the customer choosing an aircraft, route and date for the flight(s), subject to availability and flight permits. The customer is usually quoted anall-inclusive price for the charter flight, which is to be paid in advance prior to operating the flight.