Corporate Aviation Articles

Title Summary
Like-Kind Exchanges: Understanding All The Applications When deciding to sell an aircraft and replace it with an alternate aircraft, many owners already know to consider the possibility of a like-kind exchange under Section 1031 of the Internal Revenue Code. In instances in which aircraft have been held for either productive use in trade or business, or for investment, 1031 like-kind exchanges are common transactions. However, aircraft owners often...
Planning on Refurbishing an Aircraft? First Buy an Expert By Joe EsmeradoVice President, Technical ServicesLeading Edge Aviation Solutions, LLCThe best time to think about the refurbishment of a used aircraft unless you already own it is before you buy it.  Establishing the quality and status of an aircraft for purchase is critical.  That is why one of your first steps should be to hire an expert.  In the case of a contemplated aircraft...
Importing an Aircraft into the United States 2015 seems to be a year when many U.S. buyers are finding the perfect aircraft internationally and importing it into the United States. Aircraft in Europe are abundant and priced well for buyers who are willing to go through the extra steps for the import instead of waiting for an aircraft already on the US registry.There are some basic steps for the import as well as some common pitfalls for...
Aviation Insurance: Protecting Yourself While Traveling Abroad Aviation insurance – both property and liability coverage – is always a vital element of aircraft ownership, but it is especially important to review and understand the insurance coverage on your aircraft before permitting the aircraft to travel outside the United States. If your aircraft is operated by a management company, that company may perform this service for you, but do not assume that...
Aerlex Law Group A Reminder that Time Kills Deals While I was juggling hundreds of transactions concurrently for over a decade, I learned the critical lesson that time kills deals. I still firmly believe this, and had a potent reminder of it recently.Not long ago, I was representing an aircraft owner in negotiations with a potential service provider. Our discussion reached an impasse over a provision in the management agreement. The contract...
Aerlex Law Group Aircraft Acquisition: It Takes The Right Team If I could meet every buyer before they start the aircraft acquisition process, I would give them the following advice: please put together a qualified, experienced purchasing team.The first member of the team is the aviation attorney. A legal expert in aviation issues and transactions, the ideal aviation attorney can help structure the ownership with the least amount of risks and ensure...
The Technical Representative: A Key Player During Pre-buy Inspection During a recent aircraft sale, an inspection facility released an aircraft, the seller received the final invoice, and we scheduled a closing for the sale of the aircraft. On the morning of the closing, we learned that a certain repair had been performed in a way that would require inspections at more frequent intervals. This new requirement meant the aircraft did not meet the delivery conditions...
Update 2015: Fractional Ownership’s Continued Evolution, Part II In Part I of this article, I began writing about the evolution of the fractional aircraft ownership model and described new product offerings that are emerging as alternative options in the marketplace. In the first part of the series, I identified four common criticisms of the fractional ownership model: (i) the same hourly rate for every flight isn’t appropriate, (ii) too much capital is needed...
Update 2015: Fractional Ownership’s Continued Evolution, Part I Over the past decade, there have been many critics of fractional ownership who have indicated the model doesn’t work or that the model is broken. Many predicted that the industry could not sustain itself with the original model. The four key factors critics have focused on are:the same hourly rate for every flight doesn’t work,too much capital is required for a core fleet to support the...
Expecting The Unexpected I was recently reminded of just how important it is to determine who bears the risk of loss between the time a letter of intent (“LOI”) is executed and the closing of the sale of the aircraft.In my most recent experience, I was advising the buyer in an aircraft transaction. In the middle of our negotiations regarding the terms of the purchase agreement, the aircraft was struck by a snow plow!In...