Master Short-Term Engine Lease Agreement 2002

The Master Short-Term Engine Lease Agreement 2002 (MSTELA) is a standardized agreement created to provide short-term engine leasing services for aircraft operators. As an aircraft operator, you may need to lease an engine for a short-term period, and this agreement serves as a legally binding contract between the lessor and lessee.

Why is the MSTELA important?

The aviation industry is highly regulated, and leasing an engine requires adherence to a range of legal regulations. The MSTELA addresses the complexities involved in leasing an engine by establishing standard clauses that protect both parties and create a framework for a smooth leasing experience.

Understanding the MSTELA

The MSTELA includes a range of clauses, including those for:

1. Description of the engine

The agreement outlines the specifics of the engine being leased, such as the make, model, and serial number. This ensures that the lessor is providing the exact engine that the lessee requires.

2. Leasing period

The agreement sets out the duration of the lease, which can be extended by mutual agreement. The lessee is obligated to return the engine in the same condition as when it was leased.

3. Maintenance and repairs

The agreement details the responsibilities of both parties regarding maintenance and repairs. The lessor is responsible for ensuring the engine is airworthy when handed over to the lessee and for any scheduled maintenance. The lessee is responsible for any repairs required due to their negligence or mishandling.

4. Insurance

The MSTELA outlines the insurance requirements for both parties. The lessee is required to have insurance covering the engine, and the lessor is required to have liability insurance.

5. Termination and default

The agreement sets out the circumstances under which the lease can be terminated by either party and the process for handling any default on the lease.

Conclusion

The MSTELA is a vital agreement that helps establish a framework for a successful short-term engine lease. By providing a set of standardized clauses, the MSTELA serves to protect both parties, ensuring a smoother and more reliable leasing experience. If you`re an aircraft operator considering leasing an engine, it`s essential to ensure that you have a comprehensive understanding of the MSTELA and its clauses.