Tap Into Our Aviation Expertise

Structuring the ownership and operation of a corporate jet is a very fact-specific undertaking.   A few of the factors that must be considered are what entities/individuals will use the aircraft, the citizenship of the owner, the applicable tax laws, the Federal Aviation Regulations governing the proposed operation, which entity will employ the crew, liability issues, and whether there will be personal use.  The attorneys at Jackson & Wade L.L.C. understand the industry and therefore their client's priorities.  They anticipate and thwart complications that may arise during an aircraft sale/lease transaction and protect their clients' interests. The following examples illustrate the complexity of some transactions:

Example 1
South African Company with U.S. registration (Seller) ----- Swiss entity----- Australian Company with U.S. registration (Buyer)
Contracts use New York, U.S. as governing law
 The aircraft is delivered from South Africa to the Swiss entity and from the Swiss entity to the Australian Company  in the U.S.

There are U.S. legal aspects involved in many contracts involving aircraft.   In the example above, the current aircraft owner (Seller) is a South African company, which has its aircraft registered in the U.S. through an owner trust.   The seller has a purchase agreement with a Swiss entity, which is doing a back-to-back sale and immediately selling the aircraft through a sales agreement with an Australian company (Buyer) who will also register the aircraft in the U.S. through an owner trust.   Both of the purchase agreements and the sale agreement are governed by New York law.  This type of transaction can involve U.S. federal and state tax issues for each of the three parties. There are also U.S. FAA issues involved in this transaction. The involvement of U.S. aviation counsel early in the transaction can help avoid future problems with U.S. tax and aviation issues.

Eample 2
Citizen of Mexico owns Delaware LLC
The Delaware LLC has a Purchase Agreement with a Brazilian manufacturer for an aircraft
 The aircraft is to be delivered FARs compliant to the Buyer.
 Citizen of Mexico transfers the LLC to Buyer.

A Mexican citizen forms a Delaware limited liability company (LLC).   The LLC has a purchase agreement with a Brazilian aircraft manufacturer to purchase an aircraft which is to be delivered to the buyer in a FARS compliant condition.   The purchase agreement is governed by U.S. law.   The Mexican citizen wants to transfer the ownership of the LLC to a buyer.   This type of transaction can involve U.S. federal and state tax issues for the non- U.S citizen, the LLC and the buyer. Involvement of U.S. counsel early in the transaction can help avoid future problems with U.S. tax and corporate law issues.

Example 3
 Kansas Manufacturer sells aircraft to citizen of France (Buyer)
Buyer takes delivery in U.S.
Contract governed by U.S. law

A French citizen enters into a contract with a domestic aircraft manufacturer to purchase a new aircraft.   The purchase agreement is governed by Kansas law.   Involvement of U.S. aviation counsel in the transaction can help avoid future problems with state tax at the time of delivery and other contract issues which may arise.