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Operating Regulations

Aircraft Management Services Agreement – What Do You Expect? – Part 1

By June 18, 2024No Comments
green background on left lightens to yellow on right with 2 paper airplanes & words Reviewing a Management Services Agreement - What do you Expect Part 1

With an aircraft management services agreement, whether you are changing aircraft management companies or updating the documents with your current aircraft management services provider, what are some of the key terms you expect to be included?

Key Terms to Consider for your Aircraft Management Services Agreement

Some issues to consider include:

  • How long is the term?
  • When can you terminate?  When can the aircraft management services provider terminate?
  • What is the amount of the deposit, if any?
  • Will the records and loose equipment be inventoried by the aircraftmanagement services provider upon the aircraft’s arrival, and will you receive a copy of the inventory?
  • Are paper records stored in a fire-resistant area?
  • Are there back-ups for electronic records?
  • Are the services provided by the aircraft management services provider listed in the agreement?
  • Is there an initial budget?  Will they provide annual budgets that include scheduled & unscheduled maintenance and any known capital expenditures?
  • Have you reviewed their form of monthly report?  Does it include all the information you need?  Are copies of third-party invoices available to you upon request?
  • Does the agreement correctly address who will have operational control?
  • Are the correct parties covered by the fleet insurance policy of the aircraft management services provider?

Initial Considerations Result in a Better Aircraft Management Services Agreement

Initial time spent working with your aviation counsel, tax advisor and company personnel responsible for the aviation department will result in a better agreement that suits your needs and will continue to satisfy your needs until you change the structure of your aircraft operations.


Michelle M. Wade is a partner with the law firm of Jetstream Aviation Law and counsels clients on the acquisition, financing and operation of corporate jets operated under Part 91 and Part 135 of the Federal Aviation Regulations.  Jetstream Aviation Law can be found at

 The information provided here is not legal advice and does not purport to be a substitute for advice of counsel on any specific matter. For legal advice, you should consult with an attorney concerning your specific situation.

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