Aviation Legal Group transactional attorneys negotiate and complete the sale, purchase, financing, lease, and lease return of aircraft. The types of transactions listed below represent those most commonly addressed by our aviation lawyers.
Purchase / Sale
A wise aircraft buyer or seller enlists the assistance of an aviation legal professional during contract negotiations. At Aviation Legal Group, we have the expertise to secure you as favorable a purchase contract as possible.
When purchasing an aircraft, our attorneys will help you negotiate a purchase/sale agreement, and loan documents; select a venue for maximum cost savings on delivery; decide where to register the aircraft; determine the form and venue of the entity which will own the aircraft and the entity which will operate the aircraft; negotiate with insurance underwriters for maximum protection; review engine maintenance programs; draft aircraft leases; obtain appropriate international documentation with regard to international transactions; and handle any warranty claims on the aircraft.
Most fractional share programs contemplate the purchase of an agreed percentage of ownership equity in an aircraft for a pre-determined period of time. However, some programs provide for a lease or sublease between the aircraft owner and the "fractional share" customer. Our aviation attorneys can assist you in choosing and negotiating the program that best suits your needs.
Like-Kind Exchange (IRC - 1031)
If you need to exchange or reverse-exchange your aircraft in order to transfer your existing tax basis or otherwise to avoid capital gains tax, contact us to discuss your options.
Return provisions can be the most expensive provisions contained in a lease. Contact Aviation Legal Group to ensure that your return provisions and other components of your aircraft lease are drafted to suit your interests and minimize your sales and/or use tax exposure.
When purchasing "block time," an aircraft user typically does not purchase an ownership interest in the subject aircraft. Rather, the aircraft owner guarantees a certain hourly usage within a given period of time. The sale and purchase of block time use of an aircraft can be beneficial for both the aircraft owner and the aircraft user, when properly structured. However, an improperly structured transaction can result in inadvertent "commercial operation" of the subject aircraft, risking insurance coverage and potentially exposing the flight crew, owner and/or user to FAA enforcement action, including pilot certificate suspension or revocation and/or assessment of civil penalties.
Improperly structured or documented joint use of an aircraft can be deemed "commercial" use by the FAA, jeopardizing your insurance coverage and subjecting the flight crew and aircraft owner/operator to sanctions imposed by the FAA. Our airplane contract attorneys will ensure that your joint use arrangement is properly structured and documented.