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 financial consequences of specific contractual clauses.

The content of the course includes: 1) an introduction of the constitutive elements of a contract, 2) successful negotiation tips, 3) DRY/WET LEASE specifications, 4) CONTRACT ANALYSIS of a typical Aircraft Lease Agreement, 5) SUB-CONTRACTING Structure, 6) CONTRACT MANAGEMENT, and 7) SERVICE LEVEL AGREEMENTS.  

Objectives:

• Understanding of contractual clauses
• Identification of problematic clauses
• Identification of the financial consequences of contractual clauses
• Relevant responsibilities in case of sub-contracting
• How to handle contract management.
• The relation and interaction of the airline and Civil Aviation Authorities in respect of contracting. 

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
  
  
• 2. CONTRACT NEGOTIATION:
  - successful negotiation tips.
  - difficulties
  
  
• 3. DRY LEASE / WET LEASE:
  - Specifications
  - Responsibilities Lessor / Lessee (operational, maintenance, insurance)
  - Authorizations
  
  
• 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
  - 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 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, starting at 09:00 on the first day and ending at approx 16:30 on the last day.