Aircraft Charter Lawyers

Placing a private jet on charter can offset a meaningful share of its running costs, but it changes the aircraft’s regulatory character. Jaffa & Co’s aircraft charter lawyers advise owners, operators and charterers on the agreements involved, and on the consequences of moving from private to commercial operation.

From private to commercial

When an aircraft carries passengers for payment, the flights are commercial and are generally operated under an air operator certificate held by the operator, rather than by the owner. Operational control of those flights passes to the certificate holder, and the aircraft must meet the operator’s maintenance, crewing and insurance requirements. The aircraft’s registration may also need to align with the operator’s.

Owner and operator

Where an owner makes the aircraft available for charter, usually through its manager, the arrangements should set out:

• How charter revenue is shared and reported
• The owner’s priority access to the aircraft
• Who bears additional costs, wear and maintenance from charter flying
• Insurance for commercial operations and the owner’s position under it
• The tax and VAT consequences of commercial use

Charter agreements

We also advise on charter agreements themselves, for operators and charterers, including longer-term and block charter arrangements, cancellation, liability and payment terms.

Getting it right from the start

Small changes in how flights are offered or paid for can turn private flying into commercial operation without anyone intending it. We review the structure before the first charter flight so that the aircraft, the owner and the operator are all on the right side of the line.