Demurrage

Demurrage

What does Demurrage in aviation?

Demurrage Charges in Aviation

Demurrage refers to the fees charged when aircraft or cargo exceeds the allotted time at an airport terminal or hangar.

Demurrage refers to charges incurred when a person who has rented a private jet or an aircraft retains an aircraft beyond the scheduled completion time of a flight.

• Cost Implication: These charges compensate the aircraft operator for the extended use of the aircraft and potential disruption to subsequent operations.
• Contractual Aspect: Demurrage terms are usually specified in the charter contract and vary depending on the operator’s policies.
• Planning Consideration: Charter customers need to be mindful of demurrage charges when planning their itineraries.

Demurrage charges in aviation are fees for the extended use of a chartered aircraft beyond the agreed-upon schedule, impacting overall charter costs.