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Aircraft Charter Agreement

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Agreement to Charter Aircraft

Charter Agreement made on the day of 20 , between of , referred to herein as Chartering Party and , a corporation organized and existing under the laws of the state of , with its principal office located at , referred to herein as Air Carrier.

The Parties agree as follows:

I. Services to be Rendered

Chartering Party shall purchase from Air Carrier and Air Carrier shall provide to Chartering Party air transportation as follows:

A. Dates of Proposed Flight

Departure:

Returning:

B. Points to be included in Proposed Flight:

From

To

C. Aircraft to be used

Type

Seating capacity

D. Number of persons to be Transported

E. Other Services or Functions to be Performed by Air Carrier

II. Payment

Chartering Party shall pay to Air Carrier $ , computed as follows:

A. Charter price: $

B. Taxes: $

C. Fees: $

D. Cost of additional services: $

E. Other charges (describe): $

Payment of the total amount shall be made in cash on or before

III. Passengers and Baggage

Chartering Party agrees that the only passengers who will be allowed on board the charter flight will be bona fide members of the chartering organization, who have been or will be members for at least six months prior to the starting flight date, or a spouse, dependent child, or parent of a member and who lives in the member's household, together with the accompanying baggage of that person.

Chartering Party shall furnish Air Carrier at least days before the scheduled flight with a list of the passengers to be carried. Air Carrier shall issue tickets to those passengers and issue baggage checks for any baggage to be carried. No person without a ticket shall be permitted to board the aircraft.

IV. Cancellation

A. Chartering Party may cancel the charter flight at any time before days of the outgoing flight, in which case it shall not be liable to make any payments to Air Carrier, and shall be entitled to a full refund of any payments made to Air Carrier. If Chartering Party cancels after that date, Chartering Party shall pay to Air Carrier $ .

B. If Air Carrier cancels the flight before the scheduled departure date, it shall be liable to refund to Chartering Party any deposits or down payments made by Chartering Party to Air Carrier. In addition, because it is impractical and extremely difficult to fix the damages which may result by reason of the Air Carrier's cancellation of the scheduled departure, it shall pay Chartering Party liquidated damages of $ . However, Air Carrier shall not be liable for such liquidated damages if its cancellation is due to acts of God or the public enemy, strikes, or compliance with any law or regulation.

If Air Carrier cancels or is unable to perform its obligation to transport the passengers covered by this Agreement on the return flight or any point in the flight, Air Carrier shall be entitled to retain such proportion of the charter fee which the miles it has actually flown bear to the total miles agreed on to be flown.

V. Liability

A. International transportation.

Liability of the Air Carrier under this Agreement shall be subject to the rules relating to liability established by the Warsaw Convention for the portion of the transportation defined as international transportation in such convention.

B. Non-international transportation.

Liability of the Air Carrier for that portion of the air transportation for passengers, baggage, and other personal property insofar as the transportation is not international transportation as defined in the Warsaw Convention shall be as follows:

1. Air Carrier shall not be liable for any death, injury, loss, or claim of any nature, in connection with the transportation of passengers, personal property, or baggage, unless the same is due to the negligence or willful fault of the Air Carrier.

2. Liability of Air Carrier for death, injury, or delay of a passenger shall in no case exceed $ .

3. Liability of Air Carrier for loss of or damage to, or delay in the delivery of checked baggage shall not exceed $ per passenger carried on the aircraft; and the maximum declared value per passenger shall in no event exceed $ .

4. Air Carrier shall not be liable for the loss of money, bullion, jewelry, precious stones, promissory notes, negotiable instruments, or other valuable papers.

VI. Compliance with Laws

Chartering Party and Air Carrier agree to comply with all applicable federal, state, or local laws and regulations. Chartering Party and Air Carrier agree to provide each other with such information as may be necessary to enable each Party to comply with its duties and obligations under federal, state, or local law or regulation.

VII. Entire Agreement

This Agreement constitutes the entire agreement between the parties. Statements or representations made by the parties or their agents and employees shall not be binding between the Parties unless they are specifically incorporated as part of this Agreement or agreed to in writing, signed by both Parties.

VIII. Attorney’s Fees

If any action is filed in relation to this Agreement, the unsuccessful party in the action shall pay to the successful party, in addition to all the sums that either Party may be called on to pay, a reasonable sum for the successful party's attorney's fees.

IX. Effect of Partial Invalidity

The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. If any provision of this Agreement is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision.

X. Assignment of Rights

The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party.

XI. Mandatory Arbitration

Any dispute under this Agreement shall be required to be resolved by binding arbitration of the Parties hereto. If the Parties cannot agree on an arbitrator, each Party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

WITNESS our signatures as of the day and date first above stated.

By

Enter text✕

What an Aircraft Charter Agreement Covers

An Aircraft Charter Agreement is a written contract that sets the terms between an aircraft operator (or owner) and a charterer for the hire of an aircraft. It defines the scope of services, flight itinerary, payment and deposit terms, insurance and liability allocation, cancellation and amendment rules, compliance with FAA and other regulatory requirements, and any special operational conditions. The agreement creates enforceable rights and obligations and is used to document each trip, recurring charters, or block-hour arrangements.

Why a Clear Charter Agreement Matters

A precise Aircraft Charter Agreement reduces dispute risk, clarifies financial obligations, and documents safety and regulatory responsibilities. It provides evidence for claims, supports insurance coverage, and helps ensure compliance with federal aviation and contract law.

Why a Clear Charter Agreement Matters

Who Commonly Prepares or Signs This Agreement

This agreement is used by operators, brokers, corporate flight departments, and customers who charter flights.

  • Aircraft operators and Part 135 certificate holders managing charter services and flight operations.
  • Charter brokers arranging flights on behalf of individual or corporate clients.
  • Corporate flight departments and high-net-worth clients booking chartered travel or block-hour programs.

Each signer should have authority to commit payments, accept operating terms, and confirm passenger and cargo details.

Essential Clauses to Include in a Professional Charter Agreement

A robust agreement organizes rights and duties into clear clauses that reduce operational ambiguity and legal exposure.

Parties

Full legal names and contact details for the operator, charterer, and any broker; specify legal entity types.

Scope of Service

Describe aircraft type, tail number (if assigned), routing, passenger and cargo limits, and any ground services.

Pricing & Payments

State base charter rate, deposits, payment schedule, fuel surcharges, taxes, and accepted payment methods.

Cancellations

Set notice periods, refund rules, forfeiture of deposits, and conditions for operator cancellation.

Liability & Insurance

Allocate liability, list insurance minimums, and specify indemnities and limits for passenger claims and third-party damage.

Compliance

Require operator FAA compliance, crew qualifications, security screening, and any passenger documentation obligations.

Step-by-Step: Executing an Aircraft Charter Agreement

Follow these steps to prepare, confirm, and finalize a charter booking with minimal friction.

  • 01
    Draft Agreement: Populate parties, itinerary, and pricing fields accurately.
  • 02
    Verify Operator: Confirm Part 135 authority, insurance, and safety records.
  • 03
    Collect Deposit: Issue invoice and confirm payment within stated deadline.
  • 04
    Sign and Distribute: Obtain signatures and share executed copies with crew and ground handlers.

How to Configure a Digital Signing Workflow

Set up a clear signing sequence and authentication to reduce delays and preserve evidentiary trails.

Field Configuration
Signer Order Operator first | Charterer second
Authentication Email link and SMS code recommended
Required Fields Signatures, dates, deposit confirmation
Audit Trail Enable IP, timestamp, and action logs

Typical Online Signing Flow for Charter Contracts

A predictable electronic signing flow helps parties complete agreements quickly while preserving legal evidence.

  • Upload Document: Sender uploads finalized agreement file.
  • Place Fields: Add signature, initial, and date fields.
  • Send to Signers: Email or link delivered to each signer.
  • Capture Audit Trail: Platform logs timestamps, IP, and actions.

Digital Signing and Platform Considerations

Choose a platform that records intent, consent, and an audit trail compatible with ESIGN and UETA requirements.

  • File Formats: PDF and DOCX supported
  • Integrations: Connects with CRM and cloud storage
  • Authentication: Supports SMS and advanced options

Ensure the provider supports exportable audit records, secure storage, and any industry addenda (insurance or FAA compliance) required by your organization.

Comparing eSignature Providers for Charter Contracts

A neutral comparison of common eSignature criteria helps select a provider that meets security, HIPAA, and bulk distribution needs.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Security and Compliance Features to Verify

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Certifications: SOC 2 Type II and ISO 27001 available
HIPAA Support: BAA available for protected health information
Audit Trail: Detailed timestamps, IPs, and action logs
21 CFR Part 11: Compliant options for FDA-regulated records
Accessibility: WCAG 2.0 Level AA conformance

Common Risks and Potential Penalties

Breach Damages: Monetary liability for failed performance
Insurance Gaps: Claim denial if required coverages missing
Regulatory Noncompliance: FAA enforcement or fines for violations
Tax Withholding: Backup withholding 24% for missing TINs
Invalid Signature: Execution defects can void obligations
Operational Disruption: Flight cancellations, rebooking costs, reputational harm

Frequent Preparation Errors to Avoid

  • Vague itinerary entries that omit alternates or time zones, creating disputes about pick-up and landing obligations.
  • Failing to confirm the operator's Part 135 authority and adequate hull and liability insurance before accepting passengers.
  • Incomplete passenger manifests or incorrect passport/ID information that block departures or violate security rules.
  • Ambiguous payment and refund language that leaves deposit treatment or surcharge allocation unresolved in disputes.

Typical Timing and Notice Requirements

Common deadlines in charter agreements protect both parties and clarify financial exposure for cancellations and amendments.

Deposit Due Date:

Specify deposit date and time relative to booking

Final Payment:

Set final payment deadline before departure

Cancellation Notice:

Tiered notice windows with associated penalties

Schedule Changes:

Define minimum notice for itinerary amendments

Document Submission:

Passenger ID/passport deadlines before flight

Frequently Asked Questions About Aircraft Charter Agreements

Answers to common legal, execution, and operational questions about charter agreements, signing options, and recordkeeping.


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