Aircraft Operating Agreement

Aircraft Operating Agreement for the United Kingdom

Aircraft Operating Agreement Template for England and Wales

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What is a Aircraft Operating Agreement?

The Aircraft Operating Agreement is essential for establishing clear operational and legal frameworks in aviation operations. It defines the rights, responsibilities, and obligations of all parties involved in the aircraft's operation, ensuring compliance with UK aviation regulations and international standards. This agreement is particularly crucial when different entities are involved in the ownership and operation of an aircraft, requiring clear delineation of roles and responsibilities. Under English and Welsh law, these agreements must conform to both domestic legislation, including the Civil Aviation Act 1982 and Air Navigation Order 2016, as well as relevant international aviation conventions.

What sections should be included in a Aircraft Operating Agreement?

1. Parties: Identification of the aircraft operator and owner/lessor

2. Background: Context of the agreement and basic information about the aircraft

3. Definitions: Key terms used throughout the agreement including relevant legislative references to Civil Aviation Act 1982, Air Navigation Order 2016, and other applicable laws

4. Aircraft Details: Specific details of the aircraft including registration, make, model

5. Operating Terms: Core operational requirements and conditions in compliance with aviation regulations

6. Regulatory Compliance: Obligations regarding aviation regulations, permits, and compliance with CAA requirements

7. Insurance Requirements: Mandatory insurance coverage and terms as per Regulation (EC) No 785/2004

8. Maintenance Obligations: Aircraft maintenance responsibilities and compliance with safety regulations

9. Payment Terms: Financial arrangements and payment schedule

10. Term and Termination: Duration and termination provisions

What sections are optional to include in a Aircraft Operating Agreement?

1. Crew Provisions: Terms relating to flight crew, including compliance with Working Time Regulations 1998

2. Ground Handling: Ground operation responsibilities and safety requirements

3. Minimum Guarantee: Minimum usage commitments and related terms

4. Sublease Rights: Terms for subleasing the aircraft and regulatory requirements

5. Interchange Rights: Terms for aircraft interchange and compliance requirements

What schedules should be included in a Aircraft Operating Agreement?

1. Aircraft Specifications: Detailed technical specifications of the aircraft

2. Operating Charges: Detailed breakdown of all charges and fees

3. Insurance Requirements: Detailed insurance specifications and requirements

4. Maintenance Program: Detailed maintenance schedule and requirements

5. Operating Territories: Approved geographical areas of operation

6. Delivery Conditions: Aircraft condition requirements at delivery

7. Return Conditions: Aircraft condition requirements at return

8. Compliance Checklist: Regulatory compliance requirements checklist including relevant legislation

Authors

Alex Denne

Head of Growth (Open Source Law) @ ��Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

Clauses

Relevant Industries

Commercial Aviation
Private Aviation
Charter Operations
Cargo Aviation
Emergency Services

Relevant Teams

Operations
Legal
Finance
Risk Management
Maintenance
Compliance

Relevant Roles

Aviation Operations Director
Fleet Manager
Chief Pilot
Aviation Legal Counsel
Compliance Officer
Commercial Director

Industries

Civil Aviation Act 1982: Primary UK legislation governing civil aviation, establishing regulatory framework and CAA powers

Air Navigation Order 2016: Detailed regulations covering aircraft operations, safety requirements, and pilot licensing in the UK

Transport Act 2000: Legislation covering air traffic services and transport infrastructure

Chicago Convention 1944: International treaty establishing basic principles of international air navigation and aviation standards

Montreal Convention 1999: International treaty governing airline liability for international carriage by air

Cape Town Convention and Aircraft Protocol: International treaty standardizing transactions involving mobile equipment, particularly aircraft

Regulation (EC) No 1008/2008: Retained EU law covering air carrier licensing and operations

EU-UK Trade and Cooperation Agreement: Post-Brexit agreement including provisions for aviation operations between UK and EU

Air Navigation (General) Regulations 2006: Detailed requirements for air navigation and aircraft operations

Air Operations Regulations (EU) No 965/2012: Retained EU regulations covering technical requirements and procedures for air operations

Unfair Contract Terms Act 1977: Controls use of unfair terms in contracts under English law

Misrepresentation Act 1967: Governs remedies for misrepresentation in contract formation

Environmental Protection Act 1990: Framework for environmental protection including aircraft emissions and noise

Climate Change Act 2008: Sets framework for reducing greenhouse gas emissions including aviation impact

Regulation (EC) No 785/2004: Insurance requirements for air carriers and aircraft operators

Third Parties (Rights against Insurers) Act 2010: Governs rights of third parties in insurance claims

Employment Rights Act 1996: Primary legislation governing employment rights and obligations

Working Time Regulations 1998: Regulations governing working hours and rest periods including for aviation personnel

UK GDPR: Post-Brexit data protection regulation governing personal data processing

Data Protection Act 2018: UK's implementation of data protection requirements

Aviation Security Act 1982: Legislative framework for aviation security measures

Anti-terrorism, Crime and Security Act 2001: Legislation including provisions for aviation security and anti-terrorism measures

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What is a Aircraft Operating Agreement?

What sections should be included in a Aircraft Operating Agreement?

What sections are optional to include in a Aircraft Operating Agreement?

What schedules should be included in a Aircraft Operating Agreement?

Authors

Alex Denne

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