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PREP & GO: Tips for International Aircraft Transactions

August 5th, 2013

International aircraft transactions require a high level of preparation. To improve the success of an international sale, we’ve identified 6 expert tips for buying and selling an aircraft across international boundaries. The combination of common sense, advanced planning, and a valued tax advisor can return a turbulence-free sale.

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For additional legal advice regarding international aircraft transactions, contact Kent Jackson or Michelle Wade, Jackson & Wade, LLC, 913-338-1700.

Registering your Aircraft as “Based & Primarily Used”: An Alternative to the Owner Trust

July 16th, 2013

 

Very frequently a non-US citizen (at least according to the FAA’s definition of US Citizen) wants to register an Aircraft in the US. Sometimes owners unexpectedly fall into this category, such as where your corporation has a president who is not a US citizen, or your corporation is owned by individuals or entities who do not meet the FAA’s definition of US citizen. Or maybe you are a publicly traded corporation with no control over who owns your company. In any of these events, you may find yourself in a situation where the FAA says you cannot register an aircraft in the US, at least not in the traditional sense. One alternative route to registration often utilized is the “owner trust” whereby a bank or other entity serves as trustee for registration purposes, with the actual owner being the beneficiary of the trust. But for some, another alternative may provide a path to registration.

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Practice Tips for the International Purchase & Sale of Business Aircraft

June 1st, 2013

If your international commercial transaction involves a business aircraft, particularly where the buyer will register the aircraft in a different country than the one in which the seller had it registered, you have a lot of work in front of you. Cross-border aircraft transactions involve many hurdles that can be difficult to identify, and even harder to get over.

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Avoid A Flight Department Company

December 3rd, 2012

Flight department companies are entities that operate aircraft but have no other business purpose.  The use of these entities often has the opposite result, including exposure to FAA civil penalties, IRS excise taxes, and the possibility of the denial of coverage by an insurance company should a claim arise. Click here to download full article.

Buying and Flying Corporate Aircraft

September 4th, 2012

Looking for a replacement aircraft, and the right jet appears at the right prices?  The next thing you know, someone has placed an offer letter in front of you and says it’s time to sign, or you could lose this great deal! Is it a great deal? How do you know? We know, you just want to fly – and thinking about all of the legal jargon just gives you a headache.  This article will hopefully help you navigate the minefield of aircraft acquisition and ownership. Click here to download full article

FAA Notice of Proposed Policy Clarification for the Registration of Aircraft in Owner Trusts

February 17th, 2012

Earlier this month the FAA published a Notice of Proposed Policy Clarification for the Registration of Aircraft in Owner Trusts. The Notice focuses on aircraft registered in the name of trustees with non-U.S. citizen trustors/beneficiaries. Comments on the Notice are due to the FAA by March 31, 2012.

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BARR is Back!

February 17th, 2012

The FAA announced that the Block Aircraft Registration Request (BARR) program has been reinstated following the passage of an appropriations bill. Aircraft previously blocked under the Certified Security Concerns program will remain blocked. Aircraft operators who wish to have their aircraft blocked on flight tracking websites should contact the FAA at CertifiedSecurityConcern@faa.gov.

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When Was The Last Time You Checked On The Jet?

August 11th, 2011

Aircraft operations, like all other aspects of your business, require regular reviews to ensure that they evolve along with the many other facets of your company.  If you have not checked on your aircraft’s operations recently, consider reviewing the utilization, registration, liability coverage and applicable tax laws and FARs governing the proposed operation.

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FAA Moves to Disallow Blocked Aircraft Information

May 6th, 2011

A recent FAA proposal may greatly limit the privacy of your US aircraft operations.

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Paying for Personal Use of the Company Aircraft

April 12th, 2011

On December 30, 2010, the FAA issued an interpretation which allows a limited exception to the FAA’s decades-long broad prohibition on employees reimbursing the company for personal travel on the company aircraft.  As important as what this interpretation allows is what it does not allow.

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