Aircraft Management: What a Manager Does for Owners

An aircraft management company runs a privately owned aircraft on the owner's behalf. It hires and trains the crew, keeps the aircraft airworthy and legal, arranges insurance, plans trips and, if the owner wishes, places the aircraft on its air operator certificate so that it can fly charter when the owner is not using it. The owner keeps title and pays the bills. The manager supplies the organisation, the systems and the regulatory standing that a single owner would otherwise have to build.

What a manager actually does

• Crew. Recruits, employs or contracts pilots and cabin crew, arranges recurrent training and covers leave and sickness.
• Airworthiness. Tracks inspections, airworthiness directives, life-limited parts and the aircraft records. In the EU, a complex aircraft must have its continuing airworthiness managed by an approved CAMO, which the manager holds or contracts.
• Compliance. Runs the owner's flights under the private rules (Part 91 in the US, a Part-NCC declaration in Europe) and charter flights under its own certificate.
• Insurance. Places hull and liability cover with the owner as named insured.
• Trip support. Flight planning, permits, handling, crew hotels and fuel purchasing, often at fleet prices.
• Finance. Annual budget, payment of invoices and a monthly report that shows where every cost came from.
• Charter. Sells the aircraft's spare time, contracts with charter clients and accounts for the revenue.

Charter revenue: what it can and cannot do

On a charter flight the certificate holder, the manager, holds operational control and the aircraft flies under commercial rules: Part 135 in the United States, commercial air transport under an AOC in Europe. The revenue can offset part of the fixed costs of ownership, but it comes with trade-offs.

• Every charter hour adds wear, maintenance reserves and, eventually, a higher total time that affects resale value.
• Charter clients may want the aircraft on the same dates as the owner, so the agreement needs clear priority rules and notice periods.
• The aircraft and crew must meet the operator's commercial standards, which can mean equipment, training and documentation the owner would not otherwise need.
• Charter changes the tax and VAT position in many countries. Take specialist advice before signing.

Treat any projection of charter income as an estimate that depends on demand, aircraft type, base and season, not as a promise.

How fees are built

Most agreements combine four elements. A fixed monthly management fee covers the manager's staff and overheads. Direct costs, such as crew salaries, fuel, maintenance, hangar and insurance, are passed through to the owner. A commission is taken on charter revenue. Extra fees may apply for projects such as a major maintenance check, a refurbishment or a change of registry.

The detail that matters is how the pass-through costs are handled. Some managers invoice fuel, parts and services exactly at cost; others add a handling margin. Fleet discounts or supplier rebates may be shared with owners or kept. None of this is wrong if it is written down. It becomes a problem when it is not.

Reading a management agreement

1. Scope. Every service listed, and what counts as extra.
2. Money. Management fee, mark-ups, rebates, charter commission and the owner's right to audit invoices.
3. Budget control. A limit above which unbudgeted spending needs the owner's written approval.
4. Crew. Who employs the pilots, who pays them and what happens to them if the agreement ends.
5. Operational control. Who holds it on owner flights and on charter flights. Under US Part 91 the owner, or the owner's company, is often the operator in law, with the responsibility that brings.
6. Insurance. Limits, named and additional insureds, waivers of subrogation, and cover for both private and charter use.
7. Records. The aircraft records belong with the aircraft and must be returned complete on termination.
8. Charter terms. Owner priority, blackout dates, approval of charter clients and how revenue is reported.
9. Termination. Notice periods, transition help and removal of the aircraft from the certificate.

Choosing a manager

Look for experience with your aircraft type, a stable crew, independent safety audits and clear answers on how an aircraft on the ground with a fault is handled away from base. The checks in our guide to choosing a charter operator apply to managers too. If you are still deciding whether to own at all, our comparison of jet cards, fractional shares and ownership and the ownership calculator are the place to start, and our guide to flight departments covers the in-house alternative.

Questions

Does putting my jet on charter cover its costs?

Charter revenue can offset part of the fixed cost of ownership, but how much depends on demand, the aircraft type, its base and how many extra hours you accept. It also adds wear and maintenance costs and can reduce availability, so treat any projection as an estimate rather than a promise.

Who is legally responsible for the flights of a managed aircraft?

It depends on the flight. On charter flights the manager, as certificate holder, holds operational control. On the owner's private flights in the United States the owner or the owner's company is often the operator, so the agreement must state clearly who holds operational control and what that means for liability and insurance.

Can I move my aircraft to a different management company?

Yes. A good agreement sets out notice periods, the return of all aircraft records and help with the transition. Plan for a few weeks of work, as crew contracts, insurance and removal from the old certificate all have to be arranged.

Figures checked 19 October 2026. Prices are indicative and never a quote. Seen something out of date? Tell the editors.