Reading a charter contract — the clauses that matter.

A charter contract should make the operating arrangement legible. The key issue isn't whether the document looks formal — it's whether it identifies the parties, aircraft, operator, price assumptions, operational authority, and remedies when the plan changes.

Priority clauses

Review:

• Parties and role: broker, contracting carrier, owner, manager, and client.
• Operational control: which carrier or operator controls the flight.
• Aircraft substitution: permitted reasons, approval rights, and minimum standards.
• Price basis: aircraft time, positioning, fuel assumptions, crew costs, taxes, handling, and other pass-through items.
• Cancellation: deadlines, deposits, non-recoverable costs, and force majeure.
• Delay and disruption: communication, replacement aircraft, and refund or credit treatment.
• Insurance: required limits, additional-insured language, and evidence of coverage.
• Passenger information: privacy, security, and data handling.
• Governing law and dispute process: especially for cross-border flights.

The FAA's guidance distinguishes a charter from a lease: in a charter, the carrier provides the certificated aircraft and crew and retains operational responsibility; in a lease, the allocation of operational control must be understood and documented. A document that calls itself a lease doesn't resolve the issue if the actual arrangement operates differently.

Questions before signature

Ask what happens if the named tail becomes unavailable, whether the client can reject a material substitute, whether the quoted price is all-in, and which costs may be added. Confirm who signs the passenger agreement and whether the broker is acting as agent or principal.

For U.S. charter, verify the operator through FAA records. The current FAA list is designed to identify Part 135 certificate holders and the aircraft authorized for charter.