As the aviation industry continues to grow, there is an increasing need for companies to enter into livery agreements. A livery agreement is a contract between two parties whereby one party allows the other to paint their brand or logo on their aircraft. This can be a great way for airlines to expand their brand visibility and for companies to increase their exposure to potential customers.
If you are considering entering into a livery agreement, it is important to have a well-drafted contract that outlines the terms of the agreement. Below is a sample livery agreement to give you an idea of what such a contract might look like.
Sample Livery Agreement
This Livery Agreement (the “Agreement”) is entered into on [Date] by and between [Airline Name] (“Airline”), a [State/Province] corporation, with its principal place of business located at [Address] and [Company Name] (“Company”), a [State/Province] corporation, with its principal place of business located at [Address].
Airline agrees to allow Company to paint its logo and/or brand on one or more of Airline’s aircraft (the “Aircraft”) subject to the terms and conditions of this Agreement.
This Agreement shall commence on the date first set forth above and shall continue for a period of [Term Length] years, unless earlier terminated in accordance with the terms of this Agreement.
Use of Aircraft
Airline shall retain ownership of the Aircraft and shall be responsible for the operation and maintenance of the Aircraft. Company shall have the right to use the Aircraft for its own business purposes, subject to the terms and conditions of this Agreement.
Company shall be responsible for designing and painting the livery on the Aircraft, subject to Airline’s prior approval. Airline shall have the right to reject any design that it deems inappropriate or would negatively impact its image.
Company shall be responsible for the cost of maintaining the livery on the Aircraft during the term of this Agreement. Airline shall have the right to inspect the livery on the Aircraft from time to time to ensure that it is being properly maintained.
Either party may terminate this Agreement upon [Notice Period] days written notice to the other party. In the event of early termination by Company, Company shall be responsible for the cost of removing the livery from the Aircraft and restoring the Aircraft to its original state.
Neither party shall disclose the terms of this Agreement to any third party without the prior written consent of the other party.
This Agreement shall be governed by and construed in accordance with the laws of the State of [State/Province].
This Agreement constitutes the entire agreement between the parties hereto and supersedes all prior or contemporaneous understandings or agreements, whether written or oral, relating to the subject matter hereof.
In Witness Whereof, the parties have executed this Agreement as of the day and year first above written.
[Signature of Airline Representative]
[Printed Name and Title]
[Signature of Company Representative]
[Printed Name and Title]
A well-drafted livery agreement is critical to ensure that both parties are clear about their obligations and rights. The above sample livery agreement can provide a starting point for drafting your own contract, but it is important to consult with legal counsel to ensure that your agreement is tailored to your specific needs and complies with local laws and regulations.