Mro Service Agreement

This article deals with possible contractual clauses and legal rights on which a right to adjust payment obligations may be based on an MRO agreement. “EgyptAir Maintenance – Engineering brings strong technical know-how with sites in the Middle East and Africa that allow us to better serve our customers in the region,” said Ted Colbert, President and CEO of Boeing Global Services. “Our customers rely on us to keep their aircraft in the revenue department. With our global network of suppliers, of which EGME is now a part, we help ensure our customers and their passengers fly Boeing aircraft with confidence every day.¬†Paragraph 313 applies to all treaties of German law. This is an exception to the general rule that each party must comply with the contractual obligations it has agreed to once (pacta sunt servanda). Therefore, this statutory provision must be narrowly understood and only applies if, for reasons outside the scope of risk of both parties, the parties` assumptions of principle have changed significantly, resulting in unacceptable harshness for a party that is no longer in compliance with the law. The underlying idea of Section 313 is to reassess risk allocation in a situation where contractual risk has become unfair for reasons not controlled by the parties. While the economic risk inherent in a contract remains for the party actively taking such a risk in an agreement, the risk resulting from an unpredictable situation outside of contract that entails an excessive burden on a single party should be shared by both parties as a “risk-carrying partnership”. “This is a new milestone in EGME`s strategy to develop as the OAR`s leading strategy in Africa and the Middle East,” said Mostafa Ali El-Din, President and CEO of EGME.

“We are pleased to be part of Boeing`s global network, which reflects a high level of confidence in our skills and personal experience. EGME will use its extensive skills to provide the best technical services to customers looking for a well-maintained fleet. If an MRO agreement – under German law – does not provide for the adjustment of payment obligations, the airline can base its law on the law. Under long-term maintenance, repair and overhaul (MRO) contracts, airlines typically have to pay a certain rate per hour of flight (i.e. the Power-by-the-hour (PBH) fare to obtain maintenance and repair services for engines or other components, or simply have access to a specific spare parts pool. Many OAR agreements contain a provision that defines certain circumstances as a force majeure event, which excuses one or both parties to their contractual obligations, sometimes referred to as the “excusable delay clause.” Although such a provision sometimes involves “epidemic, quarantine and government acts,” it often deals only with the obligations of the OAR supplier or, where it violates the obligations of both parties, such a clause excludes the application of payment obligations. Therefore, in most cases, an airline cannot base a payment adjustment request on a force majeure clause in a DOP agreement. Contractual rights to accommodate payment obligations in PBH agreements Therefore, a well-negotiated PBH contract should contain other provisions to adapt payment obligations under certain conditions. First, the assumptions of the parties on which the specific PBH rate is based should be included in the contract. Second, if the parameters adopted are changed, the SAR agreement should have an impact on payment obligations. The changes include the flight time report or engine discharge rate, as well as fleet changes due to the gradual boarding and disembarkation of aircraft.

These changes may affect the effective PBH rate paid, but a fleet reduction or extended grounding may also affect the supposed flying hours flown over a period of time.