Buying or leasing an aircraft whether – whether it is a corporate jet, a dreamliner, or a general aviation Cessna – is an intricate endeavor, for both buyers and sellers. The process involves numerous institutions and processes. An aviation attorney should be able to analyze the value of the airplane, assess its mechanical conditions, airworthiness certificates, and issues related to its location and registration.
Typical documents that that are required by a financier of the aircraft include guarantees, security deposits, insurance policy, powers of attorney, letters from aviation authorities, legal opinions, and name plates.
Clients often just buy or lease only engines, and not the whole body of the aircraft. Engine buying or leasing also involves complex operations, such as consideration of operational details, cruise speed, and where the airplanes will be flying.
While these concerns can be overwhelming and stressful, at Kostiv and Associates we will lead you through each step of this process to make your legal flight with us smooth and pleasant.
When buying or leasing an aircraft, other important factors to consider are nationality and registration of the aircraft. For example, an aircraft can only be registered in one country (state) and the aircraft has the nationality of the state of registration.
The registration may identify the owner of the aircraft. Although some states forbid ownership by foreign citizens, a trust arrangement sometimes can solve this issue. In addition, financiers often insist on registration outside the state of location and operation of the aircraft because those states may require that their maintenance adheres to that state’s regulations. However, certain functions may be transferred from the state of registration to the state of location and operation of the aircraft based on ICAO (International Civil Aviation Organization) Article 83Bis agreement.
Finally, when the contract is breached, one should be prepared for potential defaults, remedies, and repossessions.
An effective aviation attorney, therefore, must possess solid understanding of international aviation law, contracts law, and bankruptcy law to resolve complex issues related to purchasing or leasing an aircraft.
If you are considering buying or leasing an aircraft, contact our expert attorneys today at (213) 309-9123.