Corporate Aviation Articles

Title Summary
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...
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...