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The Letter of Intent: Getting Serious About an Aircraft Acquisition |
When a buyer finally finds the perfect aircraft to purchase, he needs to show the seller he is really interested and ready to move forward. In today’s market, many sellers have had their aircraft on the market for an extended period of time and have most likely had numerous conversations with many potential buyers. In order for an interested buyer to distinguish himself as a... |
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European Union Emissions Trading Scheme Update |
April 2013 is proving to be a challenging month for many aircraft operators who fly point-to-point within the European Union (EU) and haven’t already taken the necessary steps to establish a registry account for the EU’s Emissions Trading System (ETS). Point-to-point flights within the EU must comply with the ETS, even though the EU has temporarily postponed enforcement of the ETS for... |
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Aircraft Closing Documents and the Role of the Escrow Agent |
When purchasing a new or pre-owned aircraft, one of the key members of the transaction team is the escrow agent.Most aircraft escrow agents have their offices in Oklahoma City, Oklahoma, home of the Federal Aviation Administration’s (“FAA”) civil aircraft registry.When purchasing an aircraft that will be registered in the United States, it is necessary to register the transaction with both the... |
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2013 Fractional Ownership Update: Changes, Challenges and Ramifications in the Marketplace |
The economic downturn has impacted the landscape of the fractional ownership market for the past five years. As 2013 begins, aging and shrinking fleets, postponed and cancelled deliveries of new equipment, management changes, and service interruptions have led to a more complex marketplace for fractional owners.During the 2008-2012 downturn, the number of aircraft in fractional programs decreased... |
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New Aircraft Buyers Benefit from Latest Extension of 50% Bonus Depreciation |
In early January, the United States Congress passed the American Taxpayer Relief Act of 2012 (the “Taxpayer Relief Act”). The legislation was intended to avert the so called “Fiscal Cliff” and was quickly signed into law by President Obama.The Taxpayer Relief Act includes a number of provisions that modify existing U.S. tax law, but potential aircraft buyers will be particularly interested in the... |
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2013 – THE BEST YEAR TO BUY? |
For buyers still looking for the right aircraft, 2013 could be the best year to purchase an aircraft. The pre-owned market for light, mid and large cabin business jets continues to have a surplus of inventory and prices continue to decline.In popular pre-owned aircraft types such as Falcon 2000 and Legacy 600, inventory levels are approximately 17% of the fleet. Manufacturers have reduced prices... |
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PURCHASING AN AIRCRAFT FROM EUROPE |
With the current economic conditions in Europe, purchasing an aircraft from a European country is more and more enticing. Buyers are finding that certain European aircraft are the best option available on the market, based on price, condition and interior design. However, many buyers fear the added complexity of purchasing a foreign registered aircraft and avoid considering European... |
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SELLER FINANCING: Growing out of Necessity |
In 2012, there appears to be a growing trend toward Sellers providing direct financing to Buyers for the sale of Seller aircraft. This trend has several causes. First, after several years of a Buyer’s market, some Sellers are anxious to entice Buyers to choose their aircraft over any other aircraft on the market in the same category and Seller financing is one way to stand out from the crowd.... |
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Business Aviation Mission to China |
This is the second year that the China Civil Aviation Report will be setting up the China Pavilion at the annual NBAA convention. The purpose of the China Pavilion is to help the international business aviation communities to learn and understand what China is doing in this fast growing industry and who is doing what, and how can they help you if you are interested in that market.No matter how... |
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More Flexibility for Business Aviation in the Future of Beijing |
I just returned from a trip to China participating in the Beijing Business Aviation Exhibition, and during the opening ceremony, the Administrator of the Civil Aviation Administration of China, Mr. Li Jia Xiang, announced that dedicated business aviation airports will be built at major cities such as Beijing and Shanghai. This announcement obviously is meant to satisfy the needs of business... |
