Introduction

Contracting and contract management is a daily business in the aviation sector. As such, this course is dedicated to a detailed analysis of contracting and sub-contracting related to aircraft management with references to operations, maintenance and insurance.

Many aspects related to aircraft management will be analyzed based on a standard aircraft lease agreement. This course will provide participants with a larger and in-depth knowledge of contracting and sub-contracting in aviation and will focus on the operational and financial consequences of specific contractual clauses.

Objectives:

Upon completion of this course you will be able to:

• Analyze and Interpret Contractual Clauses:
  Learners will develop the ability to thoroughly analyze contractual clauses, identify potential risks, and assess their implications on operational and financial outcomes.
• Identify and Address Problematic Clauses:
  Learners will be able to recognize problematic clauses in contracts, evaluate their impact, and propose strategies to mitigate risks and resolve issues before contract execution.
• Evaluate Financial Implications of Contractual Agreements:
  Learners will gain the skills to assess the financial consequences of contractual clauses, including cost, liability, and revenue impacts, ensuring informed decision-making in contract negotiations.
• Understand Responsibilities in Subcontracting Scenarios:
  Learners will understand the relevant legal and operational responsibilities in sub-contracting arrangements, ensuring proper oversight and compliance with contractual obligations.
• Apply Effective Contract Management Practices:
  Learners will learn how to manage contracts effectively throughout their lifecycle, including handling amendments, renewals, and terminations, to ensure compliance and optimize performance.
• Navigate Airline and Civil Aviation Authority Interactions:
  Learners will understand the regulatory relationship between airlines and Civil Aviation Authorities (CAA) concerning contracting and how to ensure contracts comply with relevant aviation regulations and standards.

Course Content

• 1. INTRODUCTION:
  - the constitutive elements of a contract
  - the links between contracts, sub-contracting, contract management and service level agreements
  - the contract in an operational environment: compliance with regulations. The differences between civil law and common law legal systems – contractual consequences
• 2. CONTRACT NEGOTIATION:
  - successful negotiation tips.
  - difficulties
• 3. DRY LEASE / WET LEASE:
  - Specifications
  - Responsibilities Lessor / Lessee (operational, maintenance, insurance)
  - Authorizations: intra EU / Third countries
• 4. CONTRACT ANALYSIS – a typical Aircraft Lease Agreement:
  - Parties concerned
  - definitions
  - description of the subject (aircraft / engines)
  - duration and anticipative dissolution
  - rent: elements of the rent
  - reserves – cost calculations (hard time, flight hour, hour/cycle ratio)
  - delivery conditions and inspection
  - re-delivery conditions
  - maintenance: compliance with regulations – sub-contracting – AD/SB compliance – cost sharing
  - operations: operational requirements – sub-contracting
  - insurance: aircraft, passenger insurance, third liability – insurance coverage system
  - Important clauses: representations and warranties, disclaimers, breach of contract and consequences
  - sublease: dry – wet
  - pooling of parts and components
  - applicable law and jurisdiction: importance
• 5. SUB-CONTRACTING:
  - Structure
  - relevant responsibilities
  - authorizations: content main agreement – competent authorities
• 6. CONTRACT MANAGEMENT:
  - definition
  - importance of contract management
  - upstream and pre-award activities
  - downstream and post-award activities
• 7. SERVICE LEVEL AGREEMENTS:
  - role
  - process
  - how to evaluate an agreement
  - service related elements
  - management related elements
  - checklist

Who should take this course

All employees (commercial, operational, legal) within aviation companies involved in contracting and/or contract management.

Pre-requisites

An interest in achieving an increased and broader knowledge in contracting, sub-contracting, contract management and SLA’s.

Participants are kindly requested to bring a laptop to the course to access course material which will only be provided in electronic format.

Duration

2 Days: 09:00 – 17:00 hrs.