Top 5 Red Flags When Reviewing Aircraft Management Proposals

Selecting an aircraft management company is a pivotal decision in private aviation ownership. While proposals often look similar on the surface, offering attractive budgets, revenue projections, and comprehensive “turnkey” services, there are usually hidden differences that determine whether the relationship will build confidence or erode it.

At Bespoke Aero, we review and benchmark management proposals on behalf of aircraft owners and their representatives. From that experience, here are five warning signs to watch for when reviewing proposals.

1. Overly Simplified Cost Estimates

If a management proposal delivers a single line for “monthly management fee” and “estimated hourly operating cost,” that’s not clarity, it’s concealment. An experienced operator should break out fixed and variable costs, disclose any mark-ups, and separate pass-through expenses (maintenance, handling, insurance, crew, fuel). Without that level of transparency, owners can’t make informed comparisons or build realistic budgets.

Red Flag: Missing or bundled cost categories that prevent like-for like comparison.

At Bespoke Aero, we encourage itemised proposals that show exactly how the fee is structured and which costs are controllable versus variable.

2. Unrealistic Charter Revenue Projections

If revenue is sought through charter, many proposals include a “potential charter income” section promising strong offsetting revenue. Yet these figures often rely on optimistic utilisation assumptions or ignore seasonal demand fluctuations. If the promised charter hours seem high compared with market data, or if the operator cannot evidence fleet utilisation records, treat the numbers with caution.

Red Flag: Revenue estimates that look too good to be true or lack clear utilisation assumptions.

Independent benchmarking against actual charter rates and hours gives owners a more reliable picture of achievable revenue.

3. Lack of Transparency Around Maintenance Handling

Maintenance oversight is one of the most significant variables in aircraft management cost. Operators frequently add internal mark-ups on third-party maintenance invoices or parts procurement without clearly declaring them. Proposals that simply state “maintenance coordination included” but don’t define cost-plus percentages or labour rates should raise questions.

Red Flag: Undefined or discretionary mark-ups on maintenance activity.

At Bespoke Aero, we always recommend obtaining a clear schedule of fees and an agreed reporting format for all maintenance transactions.

4. Ambiguous Contractual Responsibilities

A polished presentation sometimes masks weak contractual definitions. Key documents such as the Aircraft Management Agreement should clearly set out roles and liabilities: who signs fuel contracts, who manages crew employment, who carries operational responsibility under the AOC. Ambiguity in these areas can expose owners to regulatory or financial risk.

Red Flag: Vague language around operational control, insurance, and liability.

Independent review of draft agreements ensures that risk allocation and authority are aligned with ownership intent.

5. Missing Performance or Reporting Standards

Finally, beware of proposals that promise “exceptional service” without measurable indicators. The absence of defined KPIs such as reporting frequency, response times, or safety audit intervals makes it impossible to hold the operator accountable later.

Red Flag: No measurable KPIs or governance structure in the proposal.

Owners should seek regular financial reports, maintenance status updates, and operational dashboards to maintain transparency. Independent oversight from firms like Bespoke Aero can formalise these frameworks and ensure ongoing compliance and value.

Conclusion: Transparency Protects Value

A well-structured management proposal should build trust, not depend on it. The presence or absence of detail tells you much about an operator’s culture and professionalism. By applying independent analysis before signing, aircraft owners can avoid hidden costs, unrealistic expectations, and operational friction later.

Bespoke Aero exists to bring objectivity and structure to these decisions ensuring that every proposal stands up to scrutiny, and every owner retains visibility, control, and confidence.

Contact our team today for a value driven, diligent and comprehensive aircraft management selection process.