Sofema Aviation Services (SAS) www.sassofia.com considers the primary considerations to take into account when developing a contract.
Introduction
In physical terms, the negotiation of a contract is the actual process of moving through a two-way discussion with the ultimate objective of reaching a mutual agreement.
Compromise is the key to Success!
In any negotiation situation, it will usually be necessary for each party to compromise on some issues in order to achieve the desired outcomes at the end of the day the 2 key elements are risk and return on investment (revenues).
Cautionary Note – Do not try to be a “One Hit Wonder”
If you are in a superior bargaining position, it is wise to ensure a win/win outcome there will also be new deals to make so building working relationships is always beneficial in the long term.
A Negotiating Style Winning Approach
A proven strategy is based on a collaborative negotiation which contains the following features:
- Minimum of Emotional Behaviour
- Healthy Competition
- Seek Mutually Beneficial Outcomes
Major Negotiating Elements
a) Avoid an all or nothing approach by breaking the negotiation into parts – as this allows for a progressive solution and avoids an all or nothing outcome. Using the parts technique allows for the opportunity to move forward and to make progress.
b) By pursuing what is perceived as a normal outcome (fair) can shift the burden of obligation to commit to the other party maybe even to enable an exception where advantageous and to reward with a reciprocal concession elsewhere.
c) Endeavour to remove emotion – consider the real objective or interest of each side and develop options which enable easy-to-justify principles of fairness.
d) Are you in a position to control the agenda? By leading the negotiations, you have an opportunity to set the agenda and to frame the issues using your chosen terminology in this way it may be possible to provide a positive influence on the outcome.
The Role of Escrow in Aircraft Lease Agreements
- An escrow is a legal agreement in which a third party controls money or assets until two other parties involved in a transaction meet certain conditions.
- Typically, as part of the aircraft or lease transaction process, lessees or purchasers are required to place a deposit in escrow to secure the lessee’s interest in proceeding with the purchase of the aircraft.
- Note – These deposits are usually refundable until the time that the parties agree on the terms of, and execute, the aircraft lease or purchase agreement.
- In some instances, an aircraft seller may demand that a deposit be made non-refundable from the onset of the transaction. (Approach with caution.)
Next Steps
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aviation, Aircraft Lease, Aviation Leadership, Aviation Leadership and Management Skills, Aircraft Lease agreements, Leadership Training, SAS blogs, SAS training, Leadership skills, Contract, Negotiating Techniques, Negotiation, Win-Win Negotiation, Negotiation Skills
