Corporate Aviation Articles

Title Summary
The International Registry: Understanding Its Process and Protections First-time aircraft buyers, and those aircraft owners who have not bought or sold an aircraft since 2006, may be surprised by the necessity to register the sale on the International Registry (IR). However, registration on the IR is an essential best practice for the protection of one’s ownership interest in an aircraft that qualifies for such registration. Buyers and sellers should both plan...
Lease Financing Your Aircraft Acquisition In the past several years, many clients have expressed interest in a finance lease for the acquisition of a new aircraft or a newer pre-owned aircraft. Aircraft lease financing is usually structured as an operating lease, sometimes called a tax lease. In an operating lease, the lender is the actual legal owner of the aircraft and is entitled to the benefits of tax depreciation. An operating lease...
Preserving Your Anonymity as an Aircraft Owner When an aircraft is bought or sold in the United States, two documents must be filed with the Federal Aviation Administration (“FAA”) – a bill of sale and registration application. The buyer must list an address on the registration application. Both documents become part of the public record and are searchable in a number of ways. This gives many aircraft owners or potential owners pause as they...
Minimizing Aircraft Ownership Liability Aircraft owners and prospective buyers often seek advice on how to reduce the liability risks that are inherent in air- craft ownership. Prospective buyers often consider setting up a sole purpose limited liability company to own and oper- ate the aircraft in order to minimize exposure to potential liability. However, under the Federal Aviation Regulations, it is extremely difficult to have a...
Planning Ahead for Aircraft Charter Many individuals use on-demand air travel (charter) for personal or business use when their own aircraft is for sale, sold, on-order, down for repair or otherwise unavailable for use. Identifying a safe, reliable, experi- enced charter company from the many options available is very important.Having been in the business aviation industry for over a decade, I am often asked my opinion of a...
SECTION 1031 AIRCRAFT EXCHANGES When an aircraft owner decides to replace his aircraft, the aircraft being sold may retain a significant portion of its residual value and if the aircraft has been held for a relatively short depreciation period for tax purposes, the sale of the aircraft may trigger a substantial amount of gain. Furthermore, the gain may be taxable at ordinary income rates due to prior depreciation deductions....
Phenom 100 Market Watch Trends are Showing aSegmented MarketplaceOverall, the business aircraft market proved to be much weaker during the first half of 2013 than many forecasters had predicted. In April, Cessna reported it was reducing production levels to meet current demand, particularly that of its light busi-ness jet line. The news came as Cessna announced an $8 million loss during Q1 2013, further stating the...
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...
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...
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...