Corporate Aircraft Time Sharing Agreement: An Overview

Corporate aircraft time sharing agreement is a legal document that allows a company to share the use of its private aircraft with other companies or individuals. The agreement outlines the terms and conditions of the shared use of the aircraft and is a cost-effective way for a company to maintain and operate its private aircraft.

Under a corporate aircraft time sharing agreement, the sharing party (the company or individual) pays the aircraft owner a fee for the use of the aircraft. The sharing party may use the aircraft for business or personal travel, and the agreement typically provides for a certain number of hours of use per month or year.

The agreement outlines the responsibilities of both the aircraft owner and the sharing party. The aircraft owner is responsible for maintaining and operating the aircraft, while the sharing party is responsible for any costs associated with the use of the aircraft, such as fuel and landing fees.

Corporate aircraft time sharing agreements are regulated by the Federal Aviation Administration (FAA) and must meet certain requirements to be legal. The FAA requires that the agreement be in writing and signed by both parties, that the aircraft owner retain operational control of the aircraft, and that the sharing party not pay for the use of the aircraft on a per-seat basis.

Benefits of Corporate Aircraft Time Sharing Agreements

For companies that own private aircraft, a time sharing agreement can be a cost-effective way to offset some of the expenses associated with owning and operating the aircraft. By sharing the use of the aircraft, the owner can generate revenue and reduce the overall costs of ownership.

Corporate aircraft time sharing agreements also offer flexibility to both the aircraft owner and the sharing party. The owner can use the aircraft when it is not in use by the sharing party, and the sharing party can use the aircraft as needed without the expense of owning and maintaining a private aircraft.

Another benefit of corporate aircraft time sharing agreements is that they provide an opportunity for companies to network and form business relationships. By sharing the use of the aircraft, companies can travel together to conferences, meetings, and other events, which can lead to new business opportunities and partnerships.

Conclusion

Corporate aircraft time sharing agreements are a legal and cost-effective way for companies to share the use of their private aircraft with other companies or individuals. The agreements provide benefits to both the aircraft owner and the sharing party, including cost savings, flexibility, and networking opportunities. As with any legal agreement, it is essential to carefully review and understand the terms and conditions of the agreement before entering into it.