Understanding Private Jet Contracts

Private jet charter is a contractual service, not a ticket purchase. Unlike commercial flights, where the terms are boilerplate and invisible, charter contracts require your attention. The details of cancellation policies, force majeure clauses, payment terms, and liability limits can make a significant difference if anything goes wrong. This guide demystifies the key terms you will encounter and explains what to look for before you sign.

Broker vs. Operator: Who Are You Contracting With?

The first thing to understand is that there are two parties you might contract with for a private flight, and the distinction matters.

A charter operator (also called an air carrier) actually owns or operates the aircraft. They hold the FAA Part 135 certificate that authorizes them to fly paying passengers. When you contract directly with an operator, your legal relationship is straightforward.

A charter broker is a middleman who finds and books an aircraft on your behalf from the operator network. Your contract is with the broker, not the operator. The broker is responsible for ensuring the operator they select meets safety standards, insurance requirements, and delivers the agreed service.

Vanbert Aviation operates as a charter broker. Our role is to vet operators, match you with the right aircraft, and stand behind the experience. Working with a reputable broker gives you one accountable point of contact and the benefit of their operator network.

Wet Lease vs. Dry Lease

These terms come up in industry conversations and occasionally in contracts.

Wet lease is what charter clients almost always experience. The operator provides the aircraft, crew, maintenance, and insurance. You pay for the service as a complete package. The operator retains operational control and responsibility.

Dry lease means you (or another operator) lease only the aircraft itself. You provide your own crew, insurance, and operational control. This structure is used mainly by large companies with their own flight departments or by operators temporarily adding aircraft to their fleet. As a typical charter client, you will never deal with dry leases.

Pricing Components in a Charter Contract

Charter pricing is rarely a single line item. Understanding the components protects you from unexpected charges.

Base charter cost is the quoted price for the flight itself, usually based on flight hours and aircraft category. Make sure this includes fuel and standard crew costs.

Segment fees (also called FET or federal excise tax) apply to domestic US flights at 7.5% of the charter cost plus a per person segment fee. International flights have different tax structures.

Landing fees and handling fees are charged by destination airports and FBOs. These vary widely depending on location and are typically passed through at cost. Luxury FBOs in major cities can charge $500 to $2,000 or more in handling fees.

Overnight and per diem fees apply when the crew must stay overnight at the destination. Expect $300 to $600 per crew member per night, plus per diem meal expenses.

Catering is usually optional and charged based on your selections. Basic catering might be included; premium catering with specific menus is extra.

De icing charges apply during winter operations in cold weather airports. Pass through at cost.

International flights have additional charges including customs fees, handling permits, and sometimes additional insurance riders.

Cancellation Policies

Cancellation policies vary dramatically between operators. Read them carefully.

Typical structures include a full refund if cancelled 7 or more days before departure, partial refund (often 50%) for 3 to 7 day cancellations, and no refund for less than 72 hour cancellations. Some operators are stricter, requiring 14 day notice for full refunds.

For empty leg flights, cancellation terms are often much stricter because the operator has already committed to the flight. Understand exactly what happens if you need to cancel before you commit.

Weather cancellations initiated by the operator (for safety) typically result in full refunds or credits toward a future flight. This should be clearly stated in the contract.

Force Majeure and Operational Delays

Force majeure clauses describe what happens when circumstances beyond anyone's control prevent the flight. This includes weather, mechanical issues, air traffic control delays, strikes, and similar events.

Well written contracts distinguish between force majeure events (which typically don't obligate the operator to provide refunds beyond rebooking options) and operator caused delays or cancellations (which should result in compensation or refunds). Watch for contracts that use force majeure too broadly to shift all risk to the client.

The typical remedy for a force majeure event is rebooking on the next available flight or a full credit. Some operators will also cover reasonable additional expenses if you are stranded.

Aircraft Substitution Clauses

Most contracts include provisions that allow the operator to substitute a similar aircraft if the originally contracted aircraft becomes unavailable. This is generally reasonable, but watch for how "similar" is defined.

A quality contract specifies that substituted aircraft must be of equal or better category, comparable passenger capacity, and equivalent range. If the original booking was for a specific reason (e.g., a particular cabin layout for a group), make sure the contract protects that priority.

Crew Duty Time and Scheduling

FAA regulations limit how many hours pilots can fly in a given day and require minimum rest periods. Understanding these rules helps explain potential schedule constraints.

Most flight crews can work a 14 hour duty day with 10 hours of flying time. After that, they require 10 to 12 hours of rest before flying again. For long days or multi leg itineraries, your contract may require a second crew or a rest stop, which adds cost. Good brokers plan around these constraints when designing itineraries.

Liability and Insurance

Your charter contract should specify the operator's insurance coverage. Industry standard minimums are $50 million to $100 million in liability coverage. For high net worth clients, $200 million or higher is common.

Contracts typically include mutual liability waivers that limit each party's exposure to the other. Review these carefully. Your personal umbrella insurance may provide additional protection beyond what the operator carries.

Payment Terms

Most charter flights require payment in full before departure. Deposits of 25 to 50% at booking with balance due 72 hours before departure are common. Credit card payments are usually accepted but may include a 3 to 4% processing fee. Wire transfers avoid that fee.

For established clients with a payment history, some operators offer net 30 terms or account arrangements. Don't be surprised by deposit requirements for first time bookings; they are standard.

The Bottom Line

Private jet charter contracts are manageable documents if you know what to look for. Focus on the total cost (including all fees), the cancellation terms, aircraft substitution provisions, and what happens if things go wrong. A reputable broker or operator will explain every clause and welcome your questions.

At Vanbert, we take pride in transparent contracts and honest pricing. If you have questions about a charter agreement or need help understanding any aspect of the private aviation contract landscape, our team is always available to discuss.