Drafting Pitfalls In Charter And Wet Lease Agreements
Know The Regulatory Frame First Wet and damp lease operations by Indian carriers require DGCA approval and are subject to specific CAR rules. DGCA has proposed and issued revisions that tighten sourcing and surveillance standards, including reliability of the lessor state’s safety oversight. Build these constraints into your drafting and timelines. Operational Control And Liability Define who has operational control on each leg, who holds AOC responsibility, and how that aligns with DGCA approvals. Ambiguity here leads to insurance and compliance gaps. Approvals, Scope And Aircraft Swaps State the exact approvals required (wet/damp lease approvals, route/airport permissions) and restrict aircraft substitutions without prior consent, document updates, and crew currency checks. Align schedules and permissible sub-services with the CAR language. Crew Standards And Training Specify licence types, recency, differences training, and language proficiency. Include rights to review crew records and to stand down crew after incidents pending investigation. Insurance And Indemnities Check that hull and liability coverages name the right parties, include waiver of subrogation and breach-of-warranty provisions, and match jurisdiction-specific limits. Tie indemnities to actual risk ownership and regulatory responsibilities. Maintenance, Records And AOG Clarify who handles line maintenance, MEL dispatch, tech log custody, and record delivery formats. Include AOG support expectations, spares provisioning, and a reporting cadence for defects. Commercial Clauses That Bite Later Avoid vague performance metrics, soft termination rights, and unclear compensation for non-performance or regulatory changes. Define taxes, GST/VAT handling, security deposits, payment waterfalls, and redelivery condition standards. Charter Agreements: Special Watch-outs For ad-hoc or series charters, tighten cancellation windows, flight-hour caps, crew duty limits, and fuel/ferry allocations. Capture passenger/cargo handling obligations and airport-specific constraints that often cause on-day disputes.
DGCA Essentials For AOP/NSOP Applicants
What The Permit Covers An Air Operator Permit for Non-Scheduled operations (NSOP) authorises charter and on-demand services under DGCA’s Civil Aviation Requirements (CAR) for air transport. The current CAR consolidates minimum operational, airworthiness and procedural requirements for NSOP issuance. Who Can Apply Applicants must meet Indian ownership and control thresholds set out in DGCA guidance for AOP/NSOP. Confirm eligibility early—this is a gatekeeper criterion and a frequent source of delay. The Application Pathway Plan for a pre-application meeting, document submission, manual reviews, base and facilities inspections, and proving flights before the permit is issued. DGCA’s AOP package outlines the staged process and links to related requirements. Core Manuals And Programs Have your Operations Manual, Training Manual, MEL, SMS, maintenance arrangements (CAR-M), and compliance matrices ready and aligned to the CAR. Inconsistencies across manuals slow down technical evaluation. Aircraft And Crewing Lock in aircraft acquisition or lease arrangements that match your proposed operation, and ensure flight/tech crew meet licence and recency requirements. If relying on wet/damp leases, factor in separate DGCA approvals and evolving constraints. Security And Airport Interfaces Coordinate early with BCAS for the security program and with airport operators for slotting, ground handling, and facilities. These parallel tracks often define the true timeline. Common Pitfalls To Avoid Do not submit incomplete manuals, generic SMS frameworks, or letters of intent for aircraft with unclear delivery dates. Avoid route or base plans that lack documented airport arrangements. Keep corporate control documentation current to satisfy the Indian ownership test.
What Lessors Need Before A Default Notice In India
Why Preparation Matters Before issuing a default notice, a lessor in India should have documents and processes lined up to protect timelines for deregistration and export under the Cape Town framework and DGCA rules. Recent CAR updates and AIC guidance set out how IDERA requests and dues clearances interact with DGCA processing. Core Documents To Line Up Have the signed lease, novations, side letters, and all amendments in one “clean” execution set. Keep the deregistration power of attorney, IDERA originals, and certified copies accessible. Maintain a running “events matrix” showing breaches, cure periods, and notice prerequisites per the lease. IDERA And Deregistration Readiness Confirm that the IDERA is filed and acknowledged with DGCA and that the authorised signatory details match what will be used on the deregistration application. India’s CAR on registration/deregistration and the Cape Town implementation practice make this the centrepiece of an efficient exit. Airport, ANSP And Other Dues Collect evidence that airport, navigation and related public charges have been cleared or secured. DGCA guidance requires submitting proof of payment of bills when seeking permission linked to deregistration/export under IDERA. Insurance And Risk Transfers Verify open-ended coverage, loss-payee/assignee endorsements, breach-of-warranty clauses, and notice of cancellation periods. Cross-check policy details with the lease’s insurance schedule before you escalate. Records, Tech And Access Secure a plan for physical access, technical records, logbooks, back-to-birth trace, and data downloads. Align your MRO or recovery vendor so that once notices go out, inspections and storage can start without delay. Communications Plan Prepare draft default notices, demand letters, and any related Cape Town remedies notices. Keep versions aligned to the lease’s notice provisions (method, language, addresses, and cure windows). Regulatory Touchpoints And Timeline Know your path through DGCA deregistration with IDERA and any concurrent customs/export steps. CAR Section 2 (Registration/De-registration) and practice notes indicate the documentary flow and decision points you will face.