Aircraft Operating Agreement Template for Canada

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Key Requirements PROMPT example:

Aircraft Operating Agreement

I need an Aircraft Operating Agreement for a wet lease arrangement between our regional airline and a major Canadian carrier, starting March 1, 2025, including provisions for cross-border operations into the United States and specific maintenance requirements for our fleet of three Boeing 737s.

Document background
The Aircraft Operating Agreement serves as a critical legal framework for establishing the rights, responsibilities, and obligations between aircraft owners/lessors and operators/lessees in Canada. This document is essential when one party owns an aircraft while another party requires operational use of the aircraft for commercial, private, or specialized purposes. The agreement must comply with Transport Canada regulations, the Aeronautics Act, and Canadian Aviation Regulations, while potentially incorporating international aviation standards depending on the scope of operations. It covers comprehensive aspects including operational control, maintenance responsibilities, crew requirements, insurance obligations, liability provisions, and financial terms. The document is particularly important for ensuring clear delineation of responsibilities and compliance with stringent aviation safety and regulatory requirements in the Canadian jurisdiction.
Suggested Sections

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

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

3. Definitions: Detailed definitions of technical and legal terms used throughout the agreement

4. Aircraft Details: Specific information about the aircraft including registration, manufacturer, model, and configuration

5. Term and Delivery: Duration of the agreement and conditions for aircraft delivery and acceptance

6. Operational Control: Clear designation of operational control and responsibilities

7. Operating Requirements: Compliance with aviation regulations, route restrictions, and operational limitations

8. Crew Requirements: Specifications for flight crew qualifications, training, and responsibilities

9. Maintenance Obligations: Responsibilities for aircraft maintenance, repairs, and airworthiness compliance

10. Insurance Requirements: Mandatory insurance coverage and liability provisions

11. Fees and Payment Terms: Financial terms including operating fees, payment schedules, and related costs

12. Representations and Warranties: Standard warranties regarding authority, capacity, and compliance

13. Indemnification: Mutual indemnification provisions for various risks and liabilities

14. Default and Remedies: Events of default and available remedies for both parties

15. Termination: Conditions and procedures for agreement termination

16. General Provisions: Standard legal provisions including notices, governing law, and dispute resolution

Optional Sections

1. Wet Lease Provisions: Additional terms specific to wet lease arrangements where crew is provided with the aircraft

2. International Operations: Special provisions for cross-border operations and compliance with international regulations

3. Ground Handling: Terms related to ground handling services if included in the arrangement

4. Fuel Management: Provisions regarding fuel procurement and management if relevant to the arrangement

5. Training Programs: Specific requirements for crew and personnel training if provided under the agreement

6. Charter Operations: Additional terms if the aircraft will be used for charter operations

7. Environmental Compliance: Specific environmental requirements and carbon offset provisions

8. Force Majeure: Detailed provisions for handling unforeseen circumstances and their impact on operations

Suggested Schedules

1. Schedule A - Aircraft Specifications: Detailed technical specifications of the aircraft

2. Schedule B - Maintenance Program: Comprehensive maintenance requirements and schedules

3. Schedule C - Operating Territories: Approved routes and operational territories

4. Schedule D - Fee Structure: Detailed breakdown of all fees, charges, and payment terms

5. Schedule E - Insurance Requirements: Specific insurance coverage requirements and minimum limits

6. Schedule F - Delivery Conditions: Aircraft delivery and return conditions checklist

7. Schedule G - Minimum Equipment List: Required equipment and systems for operation

8. Schedule H - Crew Requirements: Detailed crew qualification and training requirements

9. Appendix 1 - Standard Operating Procedures: Detailed operational procedures and protocols

10. Appendix 2 - Emergency Response Plan: Procedures for handling emergency situations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 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

Aviation

Transportation

Logistics

Tourism

Mining

Oil & Gas

Emergency Services

Corporate Services

Charter Services

Cargo Transportation

Medical Transportation

Defense Contractors

Relevant Teams

Legal

Operations

Finance

Risk Management

Compliance

Flight Operations

Maintenance

Safety & Quality Assurance

Insurance

Contract Administration

Technical Services

Regulatory Affairs

Relevant Roles

Chief Executive Officer

Chief Operating Officer

Fleet Manager

Aviation Director

Legal Counsel

Risk Manager

Compliance Officer

Operations Manager

Chief Pilot

Maintenance Director

Finance Director

Insurance Manager

Safety Manager

Quality Assurance Manager

Contract Administrator

Aviation Regulatory Specialist

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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