MINIMUM BLOCK HOUR GUARANTEE Clause Samples

The Minimum Block Hour Guarantee clause establishes a contractual obligation for an airline or operator to provide or be paid for a specified minimum number of block hours—actual flight time from gate departure to arrival—over a defined period. In practice, this means the customer must pay for at least the agreed minimum hours, even if fewer hours are flown, or the operator must ensure enough flights are scheduled to meet the threshold. This clause ensures predictable revenue for the operator and mitigates the risk of underutilization, while providing the customer with guaranteed access to flight capacity.
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MINIMUM BLOCK HOUR GUARANTEE. 7.1 Charterer agrees to pay for a minimum number of Block Hours, as described in Exhibit B (the "Minimum Block Hour Guarantee"). Flights involved in positioning the Aircraft (ferry flights) shall count towards meeting the Minimum Block Hour Guarantee. Any Services provided for Charterer or its parent, subsidiary or affiliated companies' operations shall also count toward meeting the Minimum Block Hour Guarantee. 7.2 Charterer shall pay Allegiant, pursuant to Section 8.1, for Services to be operated pursuant to the Schedule. Charterer shall pay Allegiant based on standardized block times in Exhibit A. 7.3 Within ten (10) days of the completion of each calendar quarter and annual period, Allegiant shall provide Charterer with a report that lists the Services provided, by flight, during the subject quarter. If the Services provided fail to meet the Minimum Block Hour Guarantee, then Allegiant shall invoice Charterer for the difference between the Block Hours for the Services provided and the Minimum Block Hour Guarantee. Allegiant agrees to use flight factors, such as direct flight paths and proximate fuel stops, to minimize Block Hours. [...***...]
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MINIMUM BLOCK HOUR GUARANTEE. 7.1 HOC agrees to pay for a minimum number of Block Hours, as described in Exhibit A (the "Minimum Block Hour Guarantee"). Flights involved in positioning the Aircraft (ferry flights) shall count towards meeting the Minimum Block Hour Guarantee. 7.2 HOC shall pay Allegiant pursuant to Section 8.1, for Services to be operated pursuant to the Schedule. Within thirty (30) days of the completion of the quarter, Allegiant shall provide a report to HOC that lists the actual Block Hours operated by Allegiant for HOC. This report will be compared with the estimated Block Hours that were used to determine the appropriate advance payments made pursuant to Section 8.1. If the estimated Block Hours paid for by HOC is greater than the actual Block Hours operated by Allegiant, then Allegiant shall roll the difference into the payment for the next quarter's estimated Block Hours and count as a reduction in the Minimum Block Hours Guaranteed during the next quarter. If the estimated Block Hours paid for by HOC is less than the actual Block Hours operated by Allegiant, then Allegiant shall invoice HOC for the difference. Payment shall be due within thirty (30) days of receipt of invoice. 7.3 Within ten days of the completion of each calendar quarter, Allegiant shall provide HOC with a report that lists the Services provided by flight during the subject quarter. If the Services provided fail to meet the Minimum Block Hour Guarantee, then Allegiant shall invoice HOC for the difference between the Block Hours for the Services provided and the Minimum Block Hour Guarantee. Allegiant agrees to use flight factors, such as direct flight paths and proximate fuel stops, to minimize Block Hours. HOC shall be excused from payment for actual Block Hours incurred as a result of delays caused by factors within Allegiant's control. HOC shall be excused from the Minimum Block Hour Guarantee during any quarter in which flights are cancelled due to force majeure events, as defined in Section 19, or factors within Allegiant's control (excluding weather).
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