Corporate Aviation Articles

Title Summary
EU Update: Clarification Issued on Temporary Importation of Aircraft In most European Union (“EU”) countries, foreign-registered aircraft are subject to Value-Added Tax (“VAT”) and other duties when imported into the EU. The VAT on foreign-registered aircraft is a percentage of the purchase price for the aircraft. The percentage of VAT that is levied varies from country to country and ranges from 15%-27%. By way of example, if a new foreign-registered Gulfstream...
Aircraft Registration Numbers: Personalized “Plates” for Aircraft First-time aircraft buyers looking at a potential acquisition may not realize that the registration number painted on the fuselage or vertical stabilizer of the aircraft can be changed and personalized by the new owner. “Tail numbers” – the name often used when referring to aircraft registration numbers – can be chosen by an owner in much the same way as a “vanity” license plate for an automobile...
Assessing Your Need for Aircraft Title Insurance In some ways, buying an airplane is like buying real estate. When purchasing either an aircraft or land, prospective buyers have to confident that they will receive good, clear and unencumbered title to the property at closing. The first step in determining the condition of title is to perform a title search. In virtually all real estate transactions, the title search is followed by the purchase...
Knowing Your Options for Guaranteed Maintenance Programs When purchasing new appliances or a new car, I am often asked if I want to invest in an extended warranty. I never do this. I believe, correctly or not, that the company offering the extended warranty has significant data that shows the warranties they are selling will be profitable for the company selling the warranties. Somehow they know that my dishwasher will break the day after the warranty...
Aircraft Operating Costs: Their Impact on Purchase and Ownership Last year I helped a client acquire an aircraft. This was a replacement aircraft, and he was not a first-time buyer. As is often the case with repeat buyers, the replacement aircraft was newer, larger and faster than the aircraft being replaced. I am now working with that same client to sell the replacement aircraft. Why is he selling after only a year? When the client purchased the aircraft, he...
Protecting Your Interests When an Aircraft Deal Dissolves Over the years, most Sellers that I have represented believe their aircraft is in great condition and that no surprises or problems will be discovered during the pre-purchase inspection. Similarly, once Buyers I am working with have seen their potential acquisition and made themselves comfortable in the seats, they often believe they have found the perfect aircraft, and an emotional attachment is...
Establishing A Flight Department The owner of an aircraft or a fleet of aircraft has two choices when it comes to managing operations: hire a management company or create a stand-alone flight department.In a previous article, I have offered guidance about how to select a management company (BusinessAir 2013, Issue 6). However, for ultimate control, privacy, and exclusive use of the aircraft, flight departments can be an...
Piaggio Avanti P180 Aircraft Hitting the Market Soon In July 2013, creditors filed an involuntary petition for bankruptcy against Avantair, the fractional aircraft ownership company that was then already teetering on the brink of insolvency. It was the last straw for a company that already had halted service twice in the preceding 10 months. At that time, there were 44 Piaggio Avanti P180 aircraft in the Avantair fractional fleet. Some of these...
The Process and Pitfalls of Escrowing Deposits for an Aircraft Purchase An aircraft buyer typically places a fully refundable deposit in escrow when entering into a letter of intent for an aircraft purchase. Most aircraft title and escrow companies are located in Oklahoma City, Oklahoma, because that’s where the Federal Aviation Administration’s Civil Aircraft Registry is located. The Registry is of key importance in all civil aircraft transactions since all original...
From Jet Cards to Block Charter: A Diverse Range of Flight Solutions As non-commercial business flight solutions continue to evolve, there are now many different choices available, whether you are looking for a long-term or interim flight solution. Some of these go beyond the typical “jet card,” so it’s helpful to understand the full range of options from jet cards to block charter to membership programs.All aircraft owners come to realize that there probably will...