Corporate Aviation Articles

Title Summary
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...
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...
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...
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...
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....
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...
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...
TO THE EUROPEAN UNION FLYING YOUR AIRCRAFT TO THE EUROPEAN UNION In the past few years, it has become increasingly expensive and difficult to fly business jet aircraft into the European Union (EU). There are currently two issues that are evolving and making travel to the EU more challenging: the importation of the aircraft into the EU and the requirements of the European Union’s Emissions Trading System.When you are operating an aircraft in the EU that is not...
AIRCRAFT OWNERSHIP: STRUCTURE MATTERS Individuals and companies that are purchasing aircraft often are concerned about liability. When purchasing assets other than aircraft, it may make sense to set up a sole purpose limited liability company or corporation for the purpose of owning the asset in order to limit the potential liability associated with that asset. However, that is not always the case with owning and operating an...
Aircraft Owners Forced to Address Potential Federal Excise Tax Liability for Part 91 Managed Aircraft Aircraft owners, who don’t wish to handle the day-to-day operations of their airplane, often hire an aircraft management company to manage their asset. Those owners that make this choice now have more potential tax liability than they did a few months ago. On March 9, 2012, the IRS Office of Chief Counsel issued a controversial memorandum.This memo stated that Federal Transportation Excise Tax (“...