Aircraft can be registered registered on the U.S. civil aviation registry by U.S. citizens. Aircraft may also need to have entries made on the International Registry under the “Cape Town” Convenion if the aircraft or its engines meets certain requirements. There exist strict registration requirements for both U.S. and Non-U.S. citizens, whether they desire to purchase their respective aircraft individually or in a corporate or LLC entity.
The FAA has recently expressed its concern over the use of non-citizen trusts for the purpose of registering aircraft by non-U.S. citizens, especially when the aircraft are to be operated by the beneficial owner of the trust. Although the FAA continues to approve non-citizen owner trusts, careful consideration should be given by non-U.S. citizens to the method used to register aircraft on the U.S. civil aircraft registry.
The FAA has recently adopted a new rule that will require the re-registration of U.S. registered aircraft every 3 years. Registered owners will be provided with 180 days notice to effect the re-registration of their aircraft. Failure to properly re-register the aircraft will result in the termination of the registration which will, in most cases, also result in a default under related financing arrangements.
We are able to advise our clients on the rules and regulations and assist in selecting an appropriate form of ownership for our clients.
About Stewart H. Lapayowker, P.A.:
Based in Fort Lauderdale, Fla., the law firm of Stewart H. Lapayowker, P.A. focuses its practice on private and corporate aviation transactions worldwide, including throughout the United States, South America, the European Union, Asia and the Middle East. The firm regularly assists clients with a variety of issues related to aviation, including the sale, purchase, regulatory analyses, financing and management of corporate aircraft.