[ ]a recent charter booking by a client during the pandemic has demonstrated that chartering an aircraft now has hidden financial complexities for a customer to consider [ ]almost all charter agreements provide for a stepped-up forfeiture clause: as the user gets closer to the flight and cancels, the penalty becomes larger-and sometimes can even result in a complete loss of the advance payment made for the flights Whereas either an act of God or government orders clearly impacts the planned trip (and its business and safety factor), neither prohibits the company from getting on the aircraft and traveling to KCHS [ ]in order to reduce the chances of this happening to a client, one might consider either (a) booking your charter last minute to make sure as best you can that the trip can be enjoyed and in a safe manner based on the current outbreak map and pending government orders, or (b) negotiating an addendum to the charter agreement that provides an out if the destination city is the subject of a stay-in-place order that materially impacts the trip Inserting language in the letter of intent or the purchase agreement should be considered to cover this possibility and provide for the party that will pay the transportation costs associated with the movement of the aircraft and records under this fact pattern [ ]if the inspection uncovers a squawk that requires the ordering of parts from locations throughout the United States and Canada, where the plants or suppliers might be the subject of a lockdown order, will the parties look to the force majeure clause again for relief, and does it cover this fact scenario?
Challenges for Private Aviation Deals During Covid-19