What's in an aircraft rental agreement? 12 real agreements compared

An aircraft rental agreement is the contract a pilot signs before renting an aircraft from a flight school, FBO or flying club: it says who pays when the aircraft is damaged, how the hours are billed, what the renter may and may not do with the aircraft, and what a missed booking costs. Instead of a template, we read the agreements that twelve operators — eleven in the United States and one club in Scotland — publish on their own websites, on 24 October 2026.

Short answer: most of the twelve agreements settle the same five things: damage to the aircraft, the time the hours are billed on, a minimum charge per day or per booking, fuel bought away from base, and what a no-show costs. On damage they split three ways: four of the twelve make the renter pay the insurance deductible ($5,000 at United Flight Systems, $5,000 in motion at Dragonfly Aviation), one sets a fixed floor of $5,000 to $30,000 depending on the aircraft, and six hold the renter liable — fully, for negligence, or for damage the insurance does not cover. Six of the twelve require the renter's own hull cover, of $5,000 to $50,000. Six bill on the Hobbs, and nine set a minimum charge of one to six hours a day.

Who pays when the aircraft is damaged

1. The renter pays the deductible

   4 of 12 agreements

   The school’s insurance pays the repair; the renter pays the deductible or excess — $5,000 at United Flight Systems, $5,000 in motion at Dragonfly, £500 at the Scottish Aero Club.

   Richmor Aviation, Dragonfly Aviation, United Flight Systems, Scottish Aero Club

2. The renter pays a fixed floor

   1 of 12 agreements

   At least $5,000, $15,000 or $30,000 depending on the aircraft, or the renter’s own policy limit if that is higher.

   East Coast Aero Club

3. The renter is liable

   6 of 12 agreements

   Fully, for damage from negligence, or for what the insurance does not cover. Five of these six require the renter’s own policy, with hull cover of $5,000 to $50,000; Purdue’s agreement does not mention cover.

   Purdue Aviation, Raider Aviation, Chester County Aviation, Red Arrow Aviation, Morey Airplane Co., Long Island Aviators

Damage: who pays

This is the clause that matters most, and the agreements differ most on it.

• The deductible. Richmor Aviation in New York: "In the event of accidental damage, the Renter (member) is responsible for the insurance deductible." Dragonfly Aviation in Georgia names the amount — "The deductible for Physical Damage insurance on single engine aircraft is $5,000 for in motion incidents; $2,500 for not in motion incidents" — and adds: "If the cost of an accident or incident exceeds the amount covered by the insurance then the renter will be responsible for that excess." The Scottish Aero Club's microlight hire pack charges "an insurance excess of £500."
• A fixed floor. East Coast Aero Club in Massachusetts: "Pilots who damage an aircraft are responsible to pay at least $5,000 on fixed gear aircraft, $15,000 for complex, Diamond, and C182 aircraft, $30,000 for Cirrus aircraft or up to the full value of any non-owned insurance policy the pilot holds, whichever is greater."
• Liability, usually with your own cover. Red Arrow Aviation in New Mexico states that the renter "is personally responsible for any and all damages to the aircraft that occur during the rental period", and requires "a minimum coverage of at least fourty thousand dollars ($40,000) for aircraft damage liability coverage". Raider Aviation in Texas requires a "Hull Damage" clause of at least $50,000 and makes the renter pay damage from his own negligence; Morey Airplane Co. in Wisconsin requires $50,000 "for each occurrence", including "Loss of Use of Non-Owned Aircraft". Purdue Aviation makes the renter liable for "Any loss or damage to the Aircraft" and says nothing about cover. Dragonfly, in the deductible group, also requires $10,000 of physical damage cover.

United Flight Systems in Texas handles its $5,000 deductible differently: renters choose one of three options "to protect UFS and themselves against claims up to $5,000, including, but not limited to the deductible" — the school's own deductible program, a no-fault renter's policy, or "Escrow $5,000 on Account". What a renter's policy covers, and how much of it you need, is in renter's insurance for pilots.

What 12 rental agreements say

Operator	Damage	Meter and daily minimum	Fuel bought away	No-show or late cancellation
East Coast Aero ClubNorwood and Bedford, Massachusetts; Nashua, New Hampshire · club	At least $5,000 (fixed gear), $15,000 (complex, Diamond, C182) or $30,000 (Cirrus), or the renter’s own policy limit if higher	Hobbs, or 130% of the maintenance meter if greaterMinimum: 1 hour for 2–7 hours booked, 3 hours for 8 or more in 24 (Warriors and 172s: half the time booked, up to 4 a day)Fuel: Posted reimbursement rate or the price paid, whichever is lessNo-show: $50 an hour reserved, up to $300; late return at double the hourly rate	Posted reimbursement rate or the price paid, whichever is less	$50 an hour reserved, up to $300; late return at double the hourly rate
Richmor AviationNew York · flight school	Renter pays the insurance deductible (amount not stated); own non-owned cover strongly recommended	Hobbs ($135 C152, $170 C172 an hour)Minimum: 3 hours for a full dayFuel: At Richmor’s posted pump price at the home baseNo-show: not stated	At Richmor’s posted pump price at the home base	not stated
Purdue AviationWest Lafayette, Indiana · FBO	Renter personally liable for any loss or damage; insurance not stated	not statedMinimum: 2.5 hours a day for rentals over 24 hours awayFuel: not statedNo-show: Cancel 24 hours ahead or a service charge may apply	not stated	Cancel 24 hours ahead or a service charge may apply
Raider AviationSlaton, Texas · flight school	Renter’s policy with at least $50,000 hull cover required; renter pays damage from his negligence whether covered or not	Hobbs or tach, per aircraftMinimum: May charge 3 hours a reserved weekday, 4 on weekends and holidaysFuel: At the home field’s current fuel rateNo-show: not stated	At the home field’s current fuel rate	not stated
Chester County AviationCoatesville, Pennsylvania · flight school	Renter’s insurance required ($1,000,000 liability, $5,000 hull); renter pays damage insurance does not cover	not statedMinimum: 1 hour Monday–Thursday, 2 hours Friday–Sunday for overnight rentalsFuel: Reimbursed, price not statedNo-show: Lessons cancelled within 24 hours: one hour of instructor time	Reimbursed, price not stated	Lessons cancelled within 24 hours: one hour of instructor time
CHI AerospacePortsmouth, New Hampshire; Biddeford, Maine · flight school	not stated	Hobbs ($225 an hour)Minimum: 4 hours when booked 5 hours or moreFuel: At CHI’s own purchase price, or the renter’s if cheaperNo-show: not stated	At CHI’s own purchase price, or the renter’s if cheaper	not stated
Dragonfly AviationWinder, Georgia · flight school	Renter pays the deductible ($5,000 in motion, $2,500 not in motion) and any cost above the insurance; own cover of $10,000 physical damage required	HobbsMinimum: 3 Hobbs hours a day, depending on departure and return around 13:00; shortfall at $35–45 an hourFuel: Wet rentals: up to the home self-serve price plus $0.50 a gallonNo-show: Graduated: first late cancellation in 12 months free, from the fifth the full time scheduled	Wet rentals: up to the home self-serve price plus $0.50 a gallon	Graduated: first late cancellation in 12 months free, from the fifth the full time scheduled
United Flight SystemsSpring, Texas · flight school	Deductible $5,000; claims up to $5,000 covered by one of three options: the school’s deductible program, no-fault renter’s insurance, or $5,000 in escrow	HobbsMinimum: 1 hour per 4 hours reserved for trainers (up to 6 a day), per 6 hours for complex aircraft (up to 4)Fuel: At the home airport’s self-serve priceNo-show: May charge 50% of the full rate for the time scheduled, instructor included (late cancellation or repeat no-show)	At the home airport’s self-serve price	May charge 50% of the full rate for the time scheduled, instructor included (late cancellation or repeat no-show)
Red Arrow AviationSanta Teresa, New Mexico · flight school	Renter personally responsible for all damage; renter’s policy of at least $40,000 aircraft damage; loss of use at least $200 a day	Hobbs logged; billing method not statedMinimum: Up to 75% of the time reserved if the aircraft is used lessFuel: Reimbursed on receipts, price not statedNo-show: Under 24 hours: 1.5 hours of aircraft and 2 hours of instructor time	Reimbursed on receipts, price not stated	Under 24 hours: 1.5 hours of aircraft and 2 hours of instructor time
Morey Airplane Co.Middleton, Wisconsin · FBO	No physical damage cover for the renter; renter responsible for any damage; renter’s policy of at least $50,000 with loss of use required	not statedMinimum: not statedFuel: not statedNo-show: not stated	not stated	not stated
Long Island AviatorsFarmingdale, New York · flight school	Renter fully liable for damage and lost revenue; at least $40,000 aircraft damage cover required	not statedMinimum: on the website, not in the agreementFuel: At the local FBO’s current price or lessNo-show: Unused reservation: a 25% penalty, may be waived	At the local FBO’s current price or less	Unused reservation: a 25% penalty, may be waived
Scottish Aero Club (microlights, Alba Airsports)Perth, Scotland · club	Insurance excess of £500 for the hirer	Brakes off to brakes on (a Hobbs meter may be used to check)Minimum: 3 hours a day for hires over 4 hours or overnightFuel: On receipt, at the rate for unleaded fuelNo-show: not stated	On receipt, at the rate for unleaded fuel	not stated

Billing: the meter and the daily minimum

Six agreements bill on the Hobbs, four of them on the Hobbs alone. Richmor: "This rate is calculated by Hobbs time flown"; CHI Aerospace: "The rental rate per Hobbs hour flown is $225." East Coast Aero Club bills "based on Hobbs hour meter time or 130% of the maintenance meter time, whichever is greater", and Raider takes "the hobbs meter or tach time reading as set forth for individual aircraft". The Scottish Aero Club charges from "brakes off to brakes on". Why the meter changes what the same flight costs is in Hobbs vs tach: what counts.

A minimum charge stops an aircraft from being booked for a day and flown for an hour. East Coast Aero Club: "Any aircraft scheduled for two (2) to seven (7) hours, will be charged for a minimum of one (1) flight hour." Raider "reserves the right to charge a minimum “Daily Rate” of 3 hours of flight time for each weekday" the aircraft is reserved, "or a minimum of 4 hours for Saturday, Sunday, and holidays"; Chester County Aviation has a "minimum daily rate of 1 hour Monday to Thursday and 2 hours Friday to Sunday" for overnight rentals. Dragonfly: "Our minimum Hobbs time for aircraft rental is three hours per day" — depending on whether the trip starts before and ends after 13:00 — and bills a shortfall "at $35/hour for the DA20-C1 or $45/hour for the DA-40-180". United Flight Systems charges at least one hour for every four hours a trainer is reserved, up to six hours a day.

Fuel bought away from base

Ten of the twelve agreements reimburse fuel bought on a trip, and most cap it at the price at home. East Coast Aero Club pays "the current reimbursement rate posted in the office or at the full purchase price, whichever is less"; United Flight Systems will "only reimburse Pilot the current fuel cost at the self-service pumps at David Wayne Hooks Airport". Dragonfly, for wet rentals, allows 50 cents a gallon above its home price: "self-serve AvGas pump +$0.50 per gallon". A renter who fills up at an expensive FBO pays the difference.

No-shows and late cancellations

Seven agreements address no-shows or late cancellations, and six put a price on them; Purdue Aviation only says that a late cancellation "may result in a service charge", and Chester County Aviation's charge is for lessons. United Flight Systems, for a late cancellation or a repeated no-show: "Pilot may be charged fifty percent (50%) of the full rate for the time the aircraft was scheduled, including the flight instructor". Long Island Aviators makes an unused reservation "subject to a penalty of a 25% for the length of the reservation" (which may be waived), East Coast Aero Club $50 an hour reserved "up to a maximum of $300.00", and Red Arrow, for a cancellation under 24 hours, "one and a half (1.5) hours of the equipment rental rate AND two (2) hours of Instructor rate". How clubs write such rules, and the minimum hours and booking lengths that go with them, is in flying club booking rules.

What the 12 agreements settle

Point	Agreements that state it
Damage: who pays	11 of 12
Fuel bought away from base	10 of 12
A minimum charge per day or booking	9 of 12
The time billed (Hobbs, tach, brakes off–on)	7 of 12
No-show or late cancellation	7 of 12
The renter’s own hull cover, required	6 of 12

Airworthiness, currency and what you may not do

Most agreements that address it put the airworthiness check on the pilot — which is where the FAA puts it: "The pilot in command of a civil aircraft is responsible for determining whether that aircraft is in condition for safe flight." (14 CFR 91.7). East Coast Aero Club: "By departing on a flight, the pilot acknowledges that the aircraft was in an airworthy condition." Morey: "Renter acknowledges that he/she has inspected the aircraft and has found it to be in good mechanical condition and airworthy." United Flight Systems also commits itself: "UFS will rent aircraft in airworthy condition". Long Island Aviators adds: "Aircraft must be grounded upon discovery by a pilot/student/renter of any defect that affects flight safety."

Most also set their own currency rules: a checkout every year in each type at Chester County ("An aircraft checkout is required every 12 calendar months in each make & model"), "at least 5 hours of flight time in the last 90 days" at Dragonfly, "three take off & landings using Morey Airplane Co. aircraft each calendar month" at Morey. And most rule out flying for hire — Purdue Aviation forbids flying "To carry passengers or property for compensation or hire." — and some restrict how you fly: Richmor allows "Day VFR flights ONLY".

The FAA's truth-in-leasing rule does not apply to an ordinary rental: 14 CFR 91.23 concerns a "large civil aircraft", and "Large aircraft means aircraft of more than 12,500 pounds, maximum certificated takeoff weight." (14 CFR 1.1). What goes into a rental agreement for a Cessna 172 is up to the operator.

Writing your own

If you rent aircraft out, the twelve agreements suggest a short list: say who pays for damage and up to what amount, and whether renters must bring their own hull cover; name the meter; set a daily minimum for long rentals; cap fuel reimbursement; put a price on a no-show; and spell out the currency you require and the flights you do not allow. Then make the agreement match how you actually bill. Getting started as a renter is covered in how to rent a plane, and what operators charge per hour in how much it costs to rent a plane.

In Pilot-Next renters book within the booking rules you set, every booking is settled on the Hobbs or the Tacho, and the hours become an invoice on the renter's account balance — see aircraft rental software.