Fuel surcharges, airspace closures, reroutes, insurance, force majeure may impact ad hoc charter, jet card, and fractional private jet users.
With worldwide oil prices expected to spike and key airports in the Middle East closed as the U.S.-Iran conflict continues, aviation attorneys say it’s time for private flyers who use jet cards, fractional ownership, or have charter flights on the books to check their contracts, even if they aren’t flying into the region.
Vedder aviation attorney David Hernandez says, “The ongoing situation in Iran is already causing significant disruption for flights to and from the Middle East, and this kind of conflict will almost certainly trigger force majeure clauses in jet card and fractional contracts.”
After Russia invaded Ukraine in 2022, WTI oil prices rose, peaking at $128 per gallon, up from around $90 in the month before the conflict started.
According to Trading Economics, the price of a WTI barrel of oil was below $60 in December.
The current price is $72.22 and may be headed higher.
At the same time, airports in Dubai, Abu Dhabi, and Doha remained closed amid ongoing hostilities.
The impact, note the lawyers, extends beyond anyone trying to fly into or out of the region.
Many fractional and jet card contracts include fuel variables and surcharges, but not all do.
Hernandez notes that flights are having to take longer routings due to the U.S.-Iran conflict.
He says, “Flights crossing the Middle East are being rerouted south over Saudi Arabia, adding hours to flight times and consuming additional fuel.”
Charter contracts generally provide a fixed price for the flight when you sign the contract.
Jet card contracts that use estimated pricing give you a price for your flight based on the estimated flight time.
Others charge actual flight time on a per-hour basis.
However, some estimated-price jet card and ad hoc charter contracts can charge you more if the flight duration is longer than planned.
Those charges are generally collected after the flight, and can be a surprise to flyers who thought their price quote was a fixed charge.
Check your contract.
Many jet card and fractional programs spell out fuel surcharges.
They detail how they are calculated and how often they are updated.
However, not all do.
In terms of fine print, some charter contracts note that flights booked a specified number of weeks, days, or months in advance are subject to fuel surcharges.
What if your contract has no reference to fuel surcharges?
Does the force majeure clause allow the provider to add a surcharge based on increased fuel prices?
Aero Law Center’s Stewart Herman says, “The force majeure clause would provide that the manager is excused from performing any service if prevented from doing so by a force majeure event.”
He says, “The management agreement would not provide that the manager may impose additional charges because of a force majeure event.”
Hernandez says, “Most contracts do not consider fuel increases to constitute force majeure.”
Herman says, “If premiums rise, the manager is permitted to pass the increase along to the (fractional) owners.”
Hernandez adds, “Most insurance policies will strictly prohibit any flight operations into or near war zones.”
Private aviation companies often play a key role in these situations with both evacuation and emergency cargo charters.
Wheels Up posted on its website, “In light of the current developments in the Middle East, Wheels Up is closely monitoring the situation and assessing how best to support customers and employees across the region.”
The Delta Air Lines-backed private jet company added, “Together with our Air Partner Cargo team, we are actively reviewing airspace conditions, aircraft availability, and routing options to respond quickly to evolving travel and cargo needs.”
It noted, “All movements remain subject to airspace accessibility, local regulatory approvals, and operational considerations.”
Florida-based Bitlux posted on X that it was having success helping with evacuation flights.
Its CEO, Kyle Patel, posted on the former Twitter, “Oman airspace is open, private charter permits are being approved in as little as eight hours, all flights must be confirmed and paid before permit processing begins, getting to Muscat is the client’s responsibility — we handle everything from the tarmac.”
He also posted a Citation Sovereign for nine passengers from Muscat to Mumbai, Istanbul, or Rome.
Patel wrote, “First-come, first-served,” adding, “I’ve seen too many people camp on decisions and literally watch the plane they were about to book fly away without them.”
Both attorneys say operators have wide discretion to cancel flights for safety concerns.
Hernandez says that if your flight was cancelled due to the conflict, any payments you made for the flight should be refunded.
Qatar Airways is grounded.
Its website noted: “Qatar Airways flight operations remain temporarily suspended due to the closure of Qatari airspace.”
It added, “Qatar Airways will resume operations once the Qatar Civil Aviation Authority announces the safe reopening of Qatari airspace.”
However, its Qatar Executive private jet charter arm continued to fly.
A G650 was enroute from San Francisco to Malta (below), according to FlightAware.
A G700, which left London, was flying over Saudi Arabia, with no destination specified.
In Asia, a Qatar Executive flight departed from Phnom Penh, again without a destination specified.
Qatar Executive operates a floating fleet.
That aircraft doesn’t necessarily return to Doha after a flight.
Instead, it flies to pick up the next passengers.
For example, the aircraft enroute from San Francisco to Malta had arrived from Antigua.
The aircraft enroute from London had arrived from Miami.
Qatar Executives has about two dozen long-range Gulfstream jets.
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