https://www.businessaviationcounsel.com https://www.businessaviationcounsel.com/2024/04/stewart-lapayowker-appears-on-the-pay-proxy-podcast Mr. Lapayowker appeared on a recent episode of The Pay & Proxy Podcast, titled Corporate Aircraft Use – The Latest Trends & IRS Audit Plans. With the Wall Street Journal highlighting a significant increase in personal use of corporate aircraft in recent years, and the IRS initiating an “aircraft audit” program to scrutinize whether companies… The post Stewart Lapayowker Appears on The Pay & Proxy Podcast first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> Mr. Lapayowker appeared on a recent episode of <a href="https://www.compensationstandards.com/nonMember/InsideTrack/2024/3_19.htm"> The Pay &amp; Proxy Podcast, titled Corporate Aircraft Use – The Latest Trends &amp; IRS Audit Plans </a> . </p> </div> <div data-rss-type="text"> <p> With the Wall Street Journal highlighting a significant increase in personal use of corporate aircraft in recent years, and the IRS initiating an “aircraft audit” program to scrutinize whether companies have been improperly claiming deductions for airplane expenses used for personal travel, as well as whether individuals have accurately reported income from personal travel benefits, it appears to be an opportune moment to delve into the latest in compliance and disclosure related to the personal use of corporate aircraft. </p> </div> <div data-rss-type="text"> <p> In this episode, Stewart Lapayowker of Lapayowker Jet Counsel, along with Brad Goldberg, a Partner at Cooley in New York City explore: </p> </div> <div data-rss-type="text"> <p> <a href="/2024/04/stewart-lapayowker-appears-on-the-pay-proxy-podcast/"> Stewart Lapayowker Appears on The Pay &amp; Proxy Podcast </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Mon, 01 Apr 2024 23:24:00 GMT https://www.businessaviationcounsel.com/2024/04/stewart-lapayowker-appears-on-the-pay-proxy-podcast https://www.businessaviationcounsel.com/2020/10/delivery-conditions-fundamental-assumptions-that-an-aircraft-buyer-assumes-when-agreeing-on-price An offer to purchase an aircraft customarily includes a variety of terms, chief among them the purchase price that the buyer will pay and a list of technical delivery conditions (inspections current, airworthiness directives complied with, complete records, etc.). During the pre-purchase inspection, the inspection facility performs an independent evaluation of the aircraft and issues… The post Delivery Conditions: Fundamental Assumptions that an Aircraft Buyer Assumes When Agreeing on Price first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> An offer to purchase an aircraft customarily includes a variety of terms, chief among them the purchase price that the buyer will pay and a list of technical delivery conditions (inspections current, airworthiness directives complied with, complete records, etc.). During the pre-purchase inspection, the inspection facility performs an independent evaluation of the aircraft and issues a report identifying airworthiness or other issues that it found. Then, if the buyer accepts the technical condition of the aircraft subject to correction or repair of discrepancies from the agreed upon delivery conditions, typically the Seller is obligated to repair them at the Seller’s expense and return the aircraft to service. </p> </div> <div data-rss-type="text"> <p> The delivery conditions consist of the fundamental assumptions that the buyer is making when the buyer agrees to a price for the aircraft. The buyer is assuming that, for this price, the condition of the aircraft will satisfy the delivery conditions and be good to go at closing. </p> </div> <div data-rss-type="text"> <p> Take the example of a buyer that offers to pay $10 million for an aircraft. The seller responds to the offer asking that the seller have the right to terminate the agreement if the seller doesn’t want to do the repairs or the repairs exceed a certain dollar amount, so the buyer is left with the decision whether to move forward and invest in the inspection with the potential of paying for repairs that the seller does not want to do, or terminating. That’s just not the deal. Why would a buyer agree to spend money on an inspection only to have the seller decline to repair the discrepancies from the agreed upon delivery conditions? And is it fair for the buyer to commit itself to buy the aircraft only to have the seller decide not to (practically) sell? </p> </div> <div data-rss-type="text"> <p> The seller may be thinking “well, if I spend that money (on the discrepancy repairs) then I can sell the aircraft to someone else for more!” Um. Yeah. Nah. That’s not how it works. Any other buyer will only pay what the plane is worth in the assumed delivery condition. So that logic breaks down. But the practical problem for a seller who takes these positions is that once airworthiness discrepancies are discovered, the repair facility will not return the aircraft to service and allow it to leave until the seller spends the money and the issues are corrected. So, Seller needs to spend the money anyway! </p> </div> <div data-rss-type="text"> <p> Any formal appraisal (whether for financing or otherwise), and valuation resources (such as vRef or JetNet) assume that the aircraft is in an airworthy condition, current on maintenance and without damage as a fundamental basis for valuation. Change the assumption, and presumably a buyer would offer less. </p> </div> <div data-rss-type="text"> <p> The more that the parties can be educated in advance, the more efficient the market will operate and the quicker deals will come together. </p> </div> <div data-rss-type="text"> <p> <a href="/2020/10/delivery-conditions-fundamental-assumptions-that-an-aircraft-buyer-assumes-when-agreeing-on-price/"> Delivery Conditions: Fundamental Assumptions that an Aircraft Buyer Assumes When Agreeing on Price </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Tue, 20 Oct 2020 16:18:00 GMT https://www.businessaviationcounsel.com/2020/10/delivery-conditions-fundamental-assumptions-that-an-aircraft-buyer-assumes-when-agreeing-on-price https://www.businessaviationcounsel.com/2020/10/the-hokey-schemes-are-back It seems like every time there are new entrants to the aviation market (in this case driven by the correct perception that private aircraft are safer than airlines when it comes to exposure to COVID-19), the old shenanigans raise their ugly heads. These new seekers of safe flying  are not experienced in business aviation, including… The post The Hokey Schemes Are Back! first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> It seems like every time there are new entrants to the aviation market (in this case driven by the correct perception that private aircraft are safer than airlines when it comes to exposure to COVID-19), the old shenanigans raise their ugly heads. These new seekers of safe flying  are not experienced in business aviation, including the regulatory requirements and limitations of Part 91 operations, the true cost of owning, operating and chartering aircraft, and what it really takes to operate safely. </p> </div> <div data-rss-type="text"> <p> Remember the days of ten sham dry leases and coincidentally one crew? Or the “home-made fractional” programs? Or the “block hour” arrangements for a Part 91 aircraft? Or the non-transparent aircraft managers or management companies who don’t (or can’t) produce backup for expenses or legible expense reports? </p> </div> <div data-rss-type="text"> <p>  The thing is that, to a novice in business aviation who is applying his or her own business experience, these arrangements seem perfectly reasonable and it’s reasonable to rely on people who seem to be confident in their knowledge because they’ve “done it like that forever.” </p> </div> <div data-rss-type="text"> <p>  We hear, “It’s really a good deal if you look at the numbers.” But that sentence shouldn’t have a period at the end of it. It should continue “…except you’re not getting the tax deduction you thought you would get, the aircraft won’t be worth what they say in 3 or 5 years, you’re responsible for scheduled and unscheduled (read that as “when it breaks”) maintenance so you don’t really know the “cost”, there’s no guaranty of charter hours, you have no idea of what the current condition of the aircraft is, you’re in operational control and, oh, by the way, … it’s pretty likely that it’s illegal.” </p> </div> <div data-rss-type="text"> <p>  How many know, for example, that a single purpose entity is not eligible to operate an aircraft to carry passengers unless it has an air carrier certificate? Yeah, I thought so. </p> </div> <div data-rss-type="text"> <p> It is important that new entrants to the private aircraft market, whether as users or buyers, have a good first experience so they stay private aircraft owners or passengers for many years. This benefits the customer and grows the industry. But if they sour on it on the first attempt, the industry loses that customer (and probably anyone that they speak with about their experience) forever. </p> </div> <div data-rss-type="text"> <p>  This is not the time to make a fast buck. This is the time to educate and welcome these new entrants into what could be many years of contribution to the business aviation industry. </p> </div> <div data-rss-type="text"> <p> </p> </div> <div data-rss-type="text"> <p> <a href="/2020/10/the-hokey-schemes-are-back/"> The Hokey Schemes Are Back! </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Fri, 09 Oct 2020 21:27:00 GMT https://www.businessaviationcounsel.com/2020/10/the-hokey-schemes-are-back https://www.businessaviationcounsel.com/2020/10/small-aircraft-exemption Many of you operate aircraft 12,500 pounds MTOW or under (piston aircraft, small aircraft and helicopters).  If you utilize any of the provisions of FAR 91.501 (e.g. time sharing agreements, inter company chargebacks under b(5), etc.), as a member of NBAA you are entitled to use FAR 91.501  under the FAA’s Small Aircraft Exemption even… The post Small Aircraft Exemption first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> Many of you operate aircraft 12,500 pounds MTOW or under (piston aircraft, small aircraft and helicopters).  If you utilize any of the provisions of FAR 91.501 (e.g. time sharing agreements, inter company chargebacks under b(5), etc.), as a member of NBAA you are entitled to use FAR 91.501  under the FAA’s Small Aircraft Exemption even though you would otherwise not qualify due to the size of your aircraft.  The FAA has imposed an additional requirement as a condition to using the NBAA Small Aircraft Exemption. It is now required that you confirm your “joinder” to the exemption by sending a message to FAA confirming your NBAA membership number and agreeing to comply with the requirements of the exemption.  The process is simple and the NBAA has a portal on its web site to digitally submit the joinder. As a reminder, if applicable, the operator should be a member of NBAA (not necessarily the owner) in order to qualify. If you are not currently an NBAA member, membership can easily be arranged on the NBAA site.  If you are utilizing (or expect to utilize) 91.501 in connection with the operation of a small aircraft, we recommend submitting the joinder as soon as practicable.  Regards. SHL.   </p> </div> <div data-rss-type="text"> <p> <a href="https://nbaa.org/flight-department-administration/aircraft-operating-ownership-options/nbaas-small-aircraft-exemption/small-aircraft-exemption-notice-of-joinder-submission-tool/?vvsrc=/campaigns/77087/respond"> Link to the NBAA submission tool </a> </p> </div> <div data-rss-type="text"> <p> </p> </div> <div data-rss-type="text"> <p> <a href="/2020/10/small-aircraft-exemption/"> Small Aircraft Exemption </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Mon, 05 Oct 2020 15:03:00 GMT https://www.businessaviationcounsel.com/2020/10/small-aircraft-exemption https://www.businessaviationcounsel.com/2020/04/are-your-loas-in-the-name-of-the-correct-entity Uncoordinated Structures and Operations n anticipation of the acquisition of an aircraft, a great deal of time is spent on establishing a tax efficient and FAA-compliant operating structure. After all of the tax, accounting, aviation and other professionals have weighed in on and agreed upon an appropriate aircraft operating structure, the documents are prepared, the… The post Are Your LOAs in the Name of the Correct Entity? first appeared on Lapayowker Jet Counsel. <h3> Uncoordinated Structures and Operations </h3> <div data-rss-type="text"> <p> n anticipation of the acquisition of an aircraft, a great deal of time is spent on establishing a tax efficient and FAA-compliant operating structure. After all of the tax, accounting, aviation and other professionals have weighed in on and agreed upon an appropriate aircraft operating structure, the documents are prepared, the acquisition is closed and the structure implemented. </p> </div> <div data-rss-type="text"> <p> It is not unusual to find that the FAA letters of authorization (LOAs) for the aircraft (including RVSM) are applied for and issued in the wrong name, that is, in the name of the registered owner of the aircraft instead of in the name of the operator. A very common structure is to have the aircraft owned by one entity and then dry leased to an affiliated or different entity which will operate the aircraft under Part 91 incidental to its primary business. As you may know, a single purpose entity (which typically is the registered owner of the aircraft) is not eligible to operate the aircraft under Part 91 because, by definition, it has no primary business and, therefore, it is not (absent very unique circumstances) the appropriate holder of the LOAs. </p> </div> <div data-rss-type="text"> <p> We have found that sometimes this error is not discovered until many years after the acquisition when the aircraft has been replaced and application is being made for LOAs for the replacement aircraft. </p> </div> <h3> The morals of the story? </h3> <div data-rss-type="text"> <p> <a href="/2020/04/are-your-loas-in-the-name-of-the-correct-entity/"> Are Your LOAs in the Name of the Correct Entity? </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Fri, 24 Apr 2020 18:24:00 GMT https://www.businessaviationcounsel.com/2020/04/are-your-loas-in-the-name-of-the-correct-entity https://www.businessaviationcounsel.com/2020/04/new-podcast Plane Talk Radio, a podcast hosted by Stewart and available on blogtalkradio.com, dropped a new episode on April 22, 2020 entitled Business Aviation in the Covid19 Environment – Part 1.  Part 2 airs April 24, at 3:00pm Eastern or it can be listened to at your convenience. The post New Podcast first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> <a href="https://www.blogtalkradio.com/planetalkradio/2020/04/22/business-aviation-in-the-covid19-environment--part-1" target="_blank"> Plane Talk Radio, a podcast hosted by Stewart and available on blogtalkradio.com, dropped a new episode on April 22, 2020 entitled Business Aviation in the Covid19 Environment – Part 1.  Part 2 airs April 24, at 3:00pm Eastern or it can be listened to at your convenience. </a> </p> </div> <div data-rss-type="text"> <p> <a href="/2020/04/new-podcast/"> New Podcast </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Fri, 24 Apr 2020 14:13:00 GMT https://www.businessaviationcounsel.com/2020/04/new-podcast https://www.businessaviationcounsel.com/2020/04/is-your-pre-purchase-inspection-taking-too-long In connection with the sale of a pre-owned aircraft, an aircraft is typically subjected to a pre-purchase inspection following execution of the purchase agreement. The purchase agreement ordinarily includes an exhibit describing the scope of the inspection (that is, the tasks that will be accomplished) to be performed at the inspection facility. The parties execute… The post Is Your Pre-Purchase Inspection Taking Too Long? first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> In connection with the sale of a pre-owned aircraft, an aircraft is typically subjected to a pre-purchase inspection following execution of the purchase agreement. The purchase agreement ordinarily includes an exhibit describing the scope of the inspection (that is, the tasks that will be accomplished) to be performed at the inspection facility. The parties execute a proposal with the inspection facility, the buyer pre-pays the flat rate cost of the inspection, the aircraft is positioned at the inspection facility and away we go. </p> </div> <div data-rss-type="text"> <p> While the aircraft is undergoing the inspection, each of the buyer and the seller are attending to their respective tasks. The Seller is organizing the lien release from its lender, obtaining paid-through confirmation from the various service plans and pre-positioning its conveyance documents. The Buyer is typically arranging for its financing, organizing its operating and tax structure, and awaiting the results of the pre-purchase inspection so that it may deliver its conditional or technical acceptance to the Seller. I like to call this period between inspection commencement and conditional acceptance the “quiet period.” Basically, the inspection facility is performing the inspection work-scope to ascertain the aircraft’s status, and the parties are turning inward to work toward closing. </p> </div> <div data-rss-type="text"> <p> While it may seem that the inspection is mostly a focal point for the buyer, it is equally important that the seller keep apprised of the inspection status. A story painfully makes the point. </p> </div> <div data-rss-type="text"> <p> Buyer and Seller negotiated the sale of Seller’s aircraft. Part of the negotiation was that the Seller would accept a reduced price if the scope of the pre-purchase inspection was limited to: (i) logbook review, (ii) airworthiness directive search and (iii) engine borescope. That scope should take about a week (being conservative). After four (4) weeks, Seller was curious as to the status of the inspection and learned that, not only had the agreed upon work scope been completed, but that many other tasks had been accomplished at buyer’s direction, some of the interior had been sent out for re-covering (and completed and returned), and the conditional acceptance letter attached a work order reflecting discrepancies that would cost $140,000 to repair. Needless to say, there was a disconnect somewhere. In this situation, interestingly, the buyer was at risk for having refurbished the interior of an aircraft it didn’t own yet! </p> </div> <h3> What are the lessons to be learned? </h3> <div data-rss-type="text"> <p> <a href="/2020/04/is-your-pre-purchase-inspection-taking-too-long/"> Is Your Pre-Purchase Inspection Taking Too Long? </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Thu, 02 Apr 2020 18:19:00 GMT https://www.businessaviationcounsel.com/2020/04/is-your-pre-purchase-inspection-taking-too-long https://www.businessaviationcounsel.com/2019/10/is-your-letter-of-intent-an-accident-waiting-to-happen I was talking with a friend of mine (“Bill”) who has been a business aircraft pilot for more than 50 years, rated on many types of corporate aircraft. We were discussing the Asiana accident at San Francisco International Airport a few years ago in which a commercial airliner crashed on final approach. Both of us… The post Is Your Letter of Intent an Accident Waiting to Happen? first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> I was talking with a friend of mine (“Bill”) who has been a business aircraft pilot for more than 50 years, rated on many types of corporate aircraft. We were discussing the Asiana accident at San Francisco International Airport a few years ago in which a commercial airliner crashed on final approach. Both of us watched the newscast of the aftermath online while we were talking on the phone. </p> </div> <div data-rss-type="text"> <p> After listening to the press briefings and information about the approach, Bill said “you know Stew, that accident happened at 30,000 feet.” That was an odd statement. It crashed on the runway, didn’t it? Bill said, “what I mean is that the decisions and planning (or lack of it) made well in advance of final approach caused the accident.” Low and behold, the NTSB later concluded that the probable cause of the accident was the flight crew’s mismanagement of the aircraft’s descent during visual approach (including due to the lack of training on planning and executing visual approaches). </p> </div> <div data-rss-type="text"> <p> Planning an aviation transacting skillfully and thoroughly demands a carefully prepared letter of intent—it’s the difference between soaring and crashing. I was thinking about how I feel, as an attorney that handles aircraft transactions, each time I receive an email from a client saying “We’re buying a business aircraft and just signed a letter of intent/offer to purchase. It’s attached. Can you help us with the purchase agreement?” Going through my mind is “Umm, well, you did what?!” A client whose business is real estate, or venture capital, or widget-making, signed something (prepared by someone) to buy a multi-million dollar aircraft. Essentially, the client tried to “land” the transaction without experience in the space or legal assistance, much like operating a complex aircraft from a manual drawn on the back of a cocktail napkin. </p> </div> <div data-rss-type="text"> <p> “Stew, why get hung up on the letter of intent? It’s non-binding and it doesn’t matter. It’s a throw-away.” The letter of intent (sometimes called an offer to purchase) is the roadmap for the transaction. It should contain important elements so that (i) the parties have a meeting of the minds on the terms of the transaction, (ii) the purchase agreement negotiation is efficient due to clarity of deal terms in the LOI and (iii) <br/> the buyer (or seller) is protected from commitments and exposures that they don’t understand. </p> </div> <div data-rss-type="text"> <p> The letter of intent is a legal document which, if not drafted properly, can result in – you guessed it – a “crash on the runway,” meaning, of course, that the transaction de-rails. LOIs come in all shapes and sizes and differ in their approach depending upon the skill and objective of the person that drafted it. Often we see a letter of intent that says very little – the “wet your whistle” variety– with few terms other than deposit, purchase price, basic delivery conditions, and a commitment to sign a purchase agreement. Sometimes they do not contain the most basic of terms like a way to exit if the purchase agreement isn’t executed within a certain time period, or identify whether the transaction is “soft” (a rejection right) or “hard” (without a rejection right) or whether it is “binding” or “non-binding.” Even a short “basic” letter of intent can be a recipe for disaster, or at minimum cause the client to spend a lot of time (and money) only to find that the buyer and seller had very different understandings of the transaction with no mechanism to terminate without liability or an accusation that the LOI was in fact a binding contract. </p> </div> <div data-rss-type="text"> <p> Much like a proper approach to landing, an aircraft acquisition or sale requires proper planning at or prior to the letter of intent stage using a team of advisors experienced in the space, much as you would for the purchase of any other multi-million dollar asset or business. The earlier that team can be involved in planning for the transaction (that is, the <br/> “higher the altitude”), the more likely that a buyer or seller will not find itself in an “un-stabilized approach.” </p> </div> <div data-rss-type="text"> <p> <a href="/2019/10/is-your-letter-of-intent-an-accident-waiting-to-happen/"> Is Your Letter of Intent an Accident Waiting to Happen? </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Thu, 24 Oct 2019 18:12:00 GMT https://www.businessaviationcounsel.com/2019/10/is-your-letter-of-intent-an-accident-waiting-to-happen https://www.businessaviationcounsel.com/2018/09/how-to-make-your-legal-fees-as-high-as-possible Buying an aircraft is usually expensive enough, but in our experience there are some key things that can push legal fees higher than expected. Most are behaviors that can be avoided with the proper gameplan at the inception of the transaction.   1. Advisors, representatives and others involved go outside their “swim lanes.”   We see… The post How to Make Your Legal Fees as High as Possible! first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> Buying an aircraft is usually expensive enough, but in our experience there are some key things that can push legal fees higher than expected. Most are behaviors that can be avoided with the proper gameplan at the inception of the transaction. <br/>   <br/> <b> 1. Advisors, representatives and others involved go outside their “swim lanes.” </b> <br/>   <br/> We see this with even the most sophisticated team of advisors. Usually, even though experienced aviation counsel is involved, an advisor will interact with the escrow agent or the lender without coordinating with counsel, or perhaps even circulate legal documents that they have prepared. The result is time spent “unscrambling the egg.”      <br/>   <br/> <b> 2. Sign a letter of intent without review and expect to change the deal later. </b> <br/>   <br/> Even when they state that they are “non-binding,” letters of intent (or offers to purchase) are legal documents which, if not worded properly, can lead you to set expectations in the mind of the other party that, when reviewed by experienced advisors, could require change and disappointment.  For example, can the aircraft be rejected after the inspection? Or can it only be rejected for serious issues? Or can it not be rejected at all?  Does the letter of intent expire if a purchase agreement is not executed within a certain period of time, or is it silent? When counsel is only involved after signing the LOI, negotiations can become more time consuming. <br/>   <br/> <b> 3. Use representatives that do not understand the value of other professionals in the transaction. </b> <br/>   <br/> When representatives and counsel work together as a team, each having an understanding of his or her respective role, the transaction typically proceeds efficiently and smoothly. If the opposite is true, alot of time can be spent by all participants in a struggle for control.  </p> </div> <div data-rss-type="text"> <p> <a href="/2018/09/how-to-make-your-legal-fees-as-high-as-possible/"> How to Make Your Legal Fees as High as Possible! </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Tue, 18 Sep 2018 23:13:00 GMT https://www.businessaviationcounsel.com/2018/09/how-to-make-your-legal-fees-as-high-as-possible https://www.businessaviationcounsel.com/2018/08/we-would-have-told-elvis-that-he-had-a-problem Top officers at large companies and ultra high net worth individuals, like celebrities, are often surrounded by trusted managers, advisers and others.  Although the aircraft is a business asset, it  also is typically a purchase in which the principal has personal and intimate involvement.   This can result in direct participation by the principal in… The post We Would Have Told Elvis That He Had a Problem first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> Top officers at large companies and ultra high net worth individuals, like celebrities, are often surrounded by trusted managers, advisers and others.  Although the aircraft is a business asset, it  also is typically a purchase in which the principal has personal and intimate involvement.   </p> </div> <div data-rss-type="text"> <p> This can result in direct participation by the principal in the minutiae of the acquisition instead of remaining in his or her normal role of providing a broad  objective to his or her advisers and letting them, and experienced aviation counsel and other aviation professionals, work through the detail. Objectivity of the lead adviser can be compromised in favor of keeping the principal happy, being ” respectful” or even patronizing. This is especially difficult when the principal imports his business experience from an unrelated area  into a corporate aircraft transaction, where what  is “customary” or “market” is completely unrelated to his or her substantive business experience. </p> </div> <div data-rss-type="text"> <p> When the aviation professionals give advice and the lead adviser says “we appreciate your advice but the [principal]  would like you to include that provision in the offer anyway despite the risks you have described”,  the expertise and years of experience of the aviation professionals have little value.  They become nothing more than scriveners.  As transaction attorneys,  our responsibility is to describe the risks to the client and then, if the client’s direction is merely one of business risk and his decision is an informed one, to implement the client’s instruction.  Some are content to proceed in that manner in an effort to keep up the pretense that the principal is “all knowing”, but shouldn’t Elvis have been told hat he had a problem at some point before the 70’s? That he was hurting himself?  That  you will protect him by telling him what you think instead of what he wants to hear?  Remember, it was a child that said that the emperor wasn’t wearing clothes. </p> </div> <div data-rss-type="text"> <p> <a href="/2018/08/we-would-have-told-elvis-that-he-had-a-problem/"> We Would Have Told Elvis That He Had a Problem </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Mon, 27 Aug 2018 17:01:00 GMT https://www.businessaviationcounsel.com/2018/08/we-would-have-told-elvis-that-he-had-a-problem https://www.businessaviationcounsel.com/2018/04/tail-number-changes-tail-number-changes-tail-number-changes-oh-my It is not uncommon for an aircraft buyer to want to change the registration number on an aircraft, and it is similarly common for a seller to want to “retain” the registration number of the aircraft that he or she is selling if it has personal meaning or for other reasons.  Unfortunately, changing the registration… The post Tail Number Changes, Tail Number Changes, Tail Number Changes! Oh My! first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> It is not uncommon for an aircraft buyer to want to change the registration number on an aircraft, and it is similarly common for a seller to want to “retain” the registration number of the aircraft that he or she is selling if it has personal meaning or for other reasons.  Unfortunately, changing the registration number of an aircraft is not like obtaining a “vanity”plate for your car.  There is a process, and it takes some time, and there are some definite traps of which to be wary. </p> </div> <div data-rss-type="text"> <p> One trap to be wary of is that if there is a pending request for a number change, the FAA will not process a transfer (or bill of sale) for the aircraft.  So, the request needs to be withdrawn.  This is why we suggest that requests for number changes in connection with a purchase/sale only be made at closing.  So, don’t be anxious to make that request until you’ve spoken with an aviation professional, or you will be sorely disappointed at closing. </p> </div> <div data-rss-type="text"> <p> Let’s take an example.  In this example, Buyer owns an aircraft and is buying a second aircraft (we’ll call it New Aircraft even though it is pre-owned).  Eventually, the old aircraft will be sold.  Buyer likes the number on Old Aircraft (N12OA) and wants to put it on New Aircraft (N56NA).  Here’s the process: </p> </div> <div data-rss-type="text"> <p> 1.  Reserve a number for assignment to Old Aircraft.  We’ll use N12OB.  Usually, you like it to be a number that will not require too much painting over the old number.  Here, only 1 letter would need to be painted over.  It takes about 1 to 2 weeks for the reservation to appear in the system. </p> </div> <div data-rss-type="text"> <p> 2. Request that the FAA assign Special Registration Number N12OB to Old Aircraft to replace N12OA. </p> </div> <div data-rss-type="text"> <p> 3.  As number changes are not a priority item for FAA, approximately 4 to 6 weeks after the request, the FAA will issue FAA Form 8050-64 authorizing that the number on Old Aircraft can be changed to N12OB.  This authorization is valid for a year. </p> </div> <div data-rss-type="text"> <p> 4.  Once the new number has been ‘placed’ on Old Aircraft (usually a sticker or painted), Form 8050-64 should be signed and the original filed with FAA.  The copy of the signed and dated form is stapled to the existing registration card and then you can legally operate under the new number N12OB.  There are some other things to do as well, like re-strap the transponders and obtain a replacement CofA with the new number, and change numbers on documentation, but that’s beyond the scope of this explanation. </p> </div> <div data-rss-type="text"> <p> 5.  When the 8050-64 form is filed with FAA, you’ll want to be sure that the aviation professional that files the form reserves the old number N12OA back to the owner of Old Aircraft (which we are assuming here will be the owner of New Aircraft).  The reservation of the old number back to the owner of Old Aircraft will be reflected in the FAA system in about 2 weeks. Yes, 2 weeks. </p> </div> <div data-rss-type="text"> <p> 6.  When the FAA system shows that N12OA has been reserved back to the owner, it’s time to make the second request.  Either at the closing on the acquisition of New Aircraft or thereafter (it depends upon whether the reservation of N12OA has been completed before or after acquisition of New Aircraft), have your aviation professional submit a request to FAA to change the number on New Aircraft from N56NA to N12OA. </p> </div> <div data-rss-type="text"> <p> 7.    Approximately 4 to 6 weeks after the request, the FAA will issue FAA Form 8050-64 authorizing that the number on New Aircraft can be changed from N56NA to N12OA.  This authorization is valid for a year. </p> </div> <div data-rss-type="text"> <p> 8.  Once the new number has been ‘placed’ on New Aircraft (usually a sticker or painted), Form 8050-64 should be signed and the original filed with FAA.  The copy of the signed and dated form is stapled to the existing registration card and then you can legally operate under the new number N12OA.  Of course, if you want to keep N56NA, you’ll need to request that the FAA reserve it back to owner. </p> </div> <div data-rss-type="text"> <p> How many weeks did you count before the final number was able to be placed on New Aircraft?  If we were ambitious, 1 week to reserve a number for Old Aircraft, 4 weeks for the 8050-64 form authorizing change from N12OA to N12 OB to be issued, 1 week for N12OA to be reserved back to owner, 4 weeks for the 8050-64 form authorizing change from N56NA to N12OA.  Total:  10 weeks. </p> </div> <div data-rss-type="text"> <p> So when you hear “let’s change the number,” it’s a little more complicated than that. </p> </div> <div data-rss-type="text"> <p> Regards. SHL. </p> </div> <div data-rss-type="text"> <p> <a href="/2018/04/tail-number-changes-tail-number-changes-tail-number-changes-oh-my/"> Tail Number Changes, Tail Number Changes, Tail Number Changes! Oh My! </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Fri, 27 Apr 2018 17:47:00 GMT https://www.businessaviationcounsel.com/2018/04/tail-number-changes-tail-number-changes-tail-number-changes-oh-my https://www.businessaviationcounsel.com/2017/10/but-it-was-just-spray-paint The Federal Aviation Administration (FAA) recently issued proposed civil penalties ranging from $63,000 to $91,000 against three companies for alleged violations of Hazardous Materials Regulations (HMR). One such violation was for failing to properly mark a box containing two 12-ounce cans of spray paint. http://www.faa.gov/news/press_releases/news_story.cfm?newsId=16794&omniRss=press_releasesAoc&cid=102_P_R Applicable Hazardous Materials Regulations are complex and require the proper marking,… The post "But it Was Just Spray Paint!" first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> The Federal Aviation Administration (FAA) recently issued proposed civil penalties ranging from $63,000 to $91,000 against three companies for alleged violations of Hazardous Materials Regulations (HMR). One such violation was for failing to properly mark a box containing two 12-ounce cans of spray paint.  <a href="http://www.faa.gov/news/press_releases/news_story.cfm?newsId=16794&amp;omniRss=press_releasesAoc&amp;cid=102_P_R"> http://www.faa.gov/news/press_releases/news_story.cfm?newsId=16794&amp;omniRss=press_releasesAoc&amp;cid=102_P_R </a> </p> </div> <div data-rss-type="text"> <p> Applicable Hazardous Materials Regulations are complex and require the proper marking, labeling, and packing of hazardous materials in addition to proper training of employees that ship hazardous materials and recordkeeping. </p> </div> <div data-rss-type="text"> <p> Violations and civil penalties are common, largely due to the fact that many companies are unaware that they are improperly shipping hazardous materials and are subject to the FAA’s jurisdiction for doing so. To make matters worse, because many of these companies do not understand the FAA enforcement process, they unwittingly aid the FAA in making its case against them. </p> </div> <div data-rss-type="text"> <p> Typically, a company finds out that it has violated HMR by receiving a telephone call or letter from the FAA seeking information about the shipment. At this point, unaware that the information they provide will likely be used against them in the FAA’s subsequent enforcement action, the company provides an explanation or written statement that often indicates that they have likely violated additional regulations. Believing that their cooperation in the matter has resolved the issue and absolved them of any wrongdoing, the company is often shocked to later receive a Notice of Proposed Civil Penalty (NPCP) for its violations of HMR. Given that penalties for violations of HMR may range from $10,000 – $50,000 per violation, just one improper shipment could lead to a penalty in excess of $100,000. </p> </div> <div data-rss-type="text"> <p> Very often, companies often do not appreciate the adversarial nature of this process, which is why they seldom benefit from admitting to violations of HMR or dealing directly with the FAA. Instead, it is advisable to discuss the issue with counsel experienced with enforcement proceedings relating to HMR prior to submitting any response to the FAA’s request for information. </p> </div> <h1> <div> <p> <a href="/2017/10/but-it-was-just-spray-paint/"> "But it Was Just Spray Paint!" </a> </p> </div> <div> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> </h1> <div> <p> <a href="/2017/10/but-it-was-just-spray-paint/"> "But it Was Just Spray Paint!" </a> </p> </div> <div> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Mon, 09 Oct 2017 17:52:00 GMT https://www.businessaviationcounsel.com/2017/10/but-it-was-just-spray-paint https://www.businessaviationcounsel.com/2016/06/dont-be-emotionally-compromised In our continuing effort to educate aircraft buyers and sellers, an article that we wrote was published in Business Aviation Advisor. The article can be accessed here.   SHL. The post Don’t Be Emotionally Compromised first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> In our continuing effort to educate aircraft buyers and sellers, an article that we wrote was published in Business Aviation Advisor. The article can be accessed <a href="In our continuing effort to educate aircraft buyers and sellers, an article that we wrote was published in Business Aviation Advisor. The article can be accessed here. http://bizavadvisor.com/baa-featured-articles/emotionally-compromised.html" target="_blank"> here </a> . </p> </div> <div data-rss-type="text"> <p>   </p> </div> <div data-rss-type="text"> <p> SHL. </p> </div> <div data-rss-type="text"> <p> <a href="/2016/06/dont-be-emotionally-compromised/"> Don’t Be Emotionally Compromised </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Mon, 13 Jun 2016 12:29:00 GMT https://www.businessaviationcounsel.com/2016/06/dont-be-emotionally-compromised https://www.businessaviationcounsel.com/2016/05/lapayowker-jet-counsel-p-a-moving-to-new-office-space-in-june On June 10, 2016, Lapayowker Jet Counsel, P.A. will be relocating from Fort Lauderdale to newer, larger office space, at Lakeside Office Center, 600 N. Pine Island Road, Plantation, Florida.  Family and community involvement continue to be important ingredients to our culture and our move will provide attorneys and staff with additional opportunities for personal… The post Lapayowker Jet Counsel, P.A. Moving to New Office Space in June first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> We look forward to continuing to serve the business aviation community. </p> </div> <div data-rss-type="text"> <p> LAPAYOWKER JET COUNSEL, P.A. </p> </div> <div data-rss-type="text"> <p> Business aviation – we serve it, we live it, we love it! </p> </div> <div data-rss-type="text"> <p>   </p> </div> <div data-rss-type="text"> <p> <a href="/2016/05/lapayowker-jet-counsel-p-a-moving-to-new-office-space-in-june/"> Lapayowker Jet Counsel, P.A. Moving to New Office Space in June </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Tue, 31 May 2016 13:46:00 GMT https://www.businessaviationcounsel.com/2016/05/lapayowker-jet-counsel-p-a-moving-to-new-office-space-in-june thumbnail https://www.businessaviationcounsel.com/2016/01/dont-be-the-one-to-split-tens I am often asked by a client buying or selling an aircraft “how quickly will this deal be done?” or ” how much will this cost?” My answer is always the same:  If you can tell me how everyone in the deal will behave, I can tell you generally how long it should take and… The post Don’t Be the One to "Split Tens" first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> I am often asked by a client buying or selling an aircraft “how quickly will this deal be done?” or ” how much will this cost?” My answer is always the same:  If you can tell me how everyone in the deal will behave, I can tell you generally how long it should take and how much it should cost. But the success of an aircraft transaction, like any transaction, is dependent upon the participants being experienced, practical and level-headed. </p> </div> <div data-rss-type="text"> <p> If you’ve ever played Blackjack, you know that there are certain “rules” that you’re supposed to follow. If the dealer is showing a card on top of a 6 or less (we assume the dealer has a 10 underneath), because the dealer needs to “draw” a card until it has 17, it is likely that it will  go over 21 and “bust” i.e. the players will win.  So, the rules that players generally follow are : (a) don’t hit (take a card) if the dealer is showing a top card of 6 or under, (b) double down if you have a 10 or 11 and the dealer has something less than a 10 or face card on top, (c) always split aces, and (d) never split tens (it’s likely a winning hand). </p> </div> <div data-rss-type="text"> <p> The theory goes that if everyone at the table plays by “the rules” then the odds are better that the players will win.  If there’s a player at the table that is doing abnormal things, like splitting tens, or hitting (taking a card) when the dealer is showing 6 or lower, then that player will mess up the odds at the table, and the table will lose more often.  Heaven forbid you have 2 players like that, and the table can kiss its chips goodbye at warp speed. </p> </div> <div data-rss-type="text"> <p> How does Blackjack have anything to do with aircraft transactions?  Simple. In an aircraft transaction, you typically have the following players at the table: (i) buyer, (ii) buyer’s broker, (iii) buyer’s counsel, (iv) seller, (v) seller’s broker, (vi) seller’s counsel and (vii) the aircraft.  Interestingly, a blackjack table holds 6 to 8 players, but that would be too easy.  The issue is that if any of the 6 aircraft “players” are inexperienced or behave oddly, then the transaction takes on less than normal process, with much time and energy being devoted to education, discussion and posturing.  This can add significant time and expense to an aircraft transaction. </p> </div> <div data-rss-type="text"> <p> So if you or one of your teammates is thinking about “splitting tens,” and the other players are telling you not to (or looking at you funny) then maybe it’s time to admit that you need help from an experienced player, or perhaps leave the table until you do.  Otherwise, your chips will be gone, and so will the deal that you desperately wanted to close. </p> </div> <div data-rss-type="text"> <p>   </p> </div> <div data-rss-type="text"> <p>   </p> </div> <div data-rss-type="text"> <p>   </p> </div> <div data-rss-type="text"> <p> <a href="/2016/01/dont-be-the-one-to-split-tens/"> Don’t Be the One to "Split Tens" </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Fri, 15 Jan 2016 18:17:00 GMT https://www.businessaviationcounsel.com/2016/01/dont-be-the-one-to-split-tens https://www.businessaviationcounsel.com/2014/08/sydney-macca-esq-joins-the-firm We are pleased to announce that Sydney L. Macca, Esq. has joined our team. Sydney has a unique perspective on business aviation having served as the Manager of Flight Operations for a Part 91 flight department with operations in over 100 countries, and will be a valuable resource.  She also served on the NBAA Security… The post Sydney Macca, Esq. Joins the Firm first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> We are pleased to announce that Sydney L. Macca, Esq. has joined our team. Sydney has a unique perspective on business aviation having served as the Manager of Flight Operations for a Part 91 flight department with operations in over 100 countries, and will be a valuable resource.  She also served on the NBAA Security Council and on the Gulfstream Advanced Technology Customer Advisory Team and Customer Advisory Board for the Gulfstream 650. Sydney has particular experience with creating and implementing pandemic and business continuity planning, as well as enterprise risk management initiatives with particular emphasis on emergency response plans. Sydney has also represented companies in FAA enforcement actions relating to compliance with hazardous materials regulations. Please welcome Sydney when you have a moment. Sydney can be reached at <a href="mailto:Sydney.Macca@shlpa.com"> Sydney.Macca@shlpa.com </a> </p> </div> <div data-rss-type="text"> <p> <a href="/2014/08/sydney-macca-esq-joins-the-firm/"> Sydney Macca, Esq. Joins the Firm </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Wed, 06 Aug 2014 20:46:00 GMT https://www.businessaviationcounsel.com/2014/08/sydney-macca-esq-joins-the-firm https://www.businessaviationcounsel.com/2014/07/dont-be-emotionally-compromised-2 he film Star Trek (J.J. Abrams, dir., Paramount Pictures, 2009) presents an alternate timeline in which Spock is Captain and Kirk is First Officer. Kirk taunts Spock in an effort to upset him and, after beating up Kirk, Spock realizes he’s lost control of his emotions. He announces: “Doctor, I am no lon-ger fit for… The post Don’t Be Emotionally Compromised first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> he film Star Trek (J.J. Abrams, dir., Paramount Pictures, 2009) presents an alternate timeline in which Spock is Captain and Kirk is First Officer. Kirk taunts Spock in an effort to upset him and, after beating up Kirk, Spock realizes he’s lost control of his emotions. He announces: “Doctor, I am no lon-ger fit for duty. I hereby relinquish my command on the grounds that I have been emotionally compromised.” </p> </div> <div data-rss-type="text"> <p> Even with almost 25 years of practice handling corporate air-craft purchases, I’m still surprised by how often the process takes on a very personal, emotional tone unlike that of any other business asset purchase. The issues involved in purchasing a corporate aircraft are varied and complex, including the drafting and negotiation of transaction documents, structural and tax issues, among others. Although it would be ideal to address these issues before the client’s decision to acquire the aircraft, most of the time our first meeting is to work on the letter of intent or purchase agreement, because the target aircraft already has been identified. </p> </div> <div data-rss-type="text"> <p> I routinely explain to the client the key issues to be addressed. Will it be a “hard deal” (if the seller fixes the discrepancies, buyer is committed to buy and the deposit is immediately at risk upon signing the purchase agreement), or a “soft deal” (after the inspection, will the buyer have an outright rejection right, and therefore the buyer’s deposit isn’t at risk until technical acceptance)? What should be the deposit amount? Where will the inspection take place? What are the basic delivery conditions? To what extent is the seller obligated to repair discrepancies (only airworthiness/safety of flight, or others)? Is the seller of the air-craft the registered owner or will the buyer purchase in a “back to back” transaction from a third party? </p> </div> <div data-rss-type="text"> <p> Many of these issues are driven by the objective analysis of the leverage of the parties in the transaction. Is the aircraft in de-mand? Have prices been falling? Is it a buyer’s or a seller’s mar-ket? Was a transaction on the aircraft recently terminated? </p> </div> <div data-rss-type="text"> <p> Assuming the buyer has no previous experience with an aircraft acquisition, one would think that the interaction with aviation counsel would be objective, with the client listening, asking questions, and making rational decisions. However, an aircraft acquisition can have a strong subjective emotional component. Often, I review the letter of intent, explain the issues, get buy-in on needed revisions, and then hear a telling question: “If we go back with these revisions, do you think we’ll lose the deal?” I usually reply: “It’s possible, but more likely they’ll respond with their concept of the transaction, and then we’ll discuss it.” The document is distributed, then comes back with some revisions. </p> </div> <div data-rss-type="text"> <p> In the meantime, the client has climbed aboard the aircraft, smelled the leather seats, admired the interior, and spoken with the seller’s representative. I’m convinced there’s some hypnotic drug in the leather, because inevitably, the next time we meet to discuss the letter of intent or purchase agreement, I hear the dreaded tell-tale words: “I want this aircraft,” or “I understand, but that result is not going to happen. I looked them in the eye and I trust them.” </p> </div> <div data-rss-type="text"> <p> A transactional lawyer’s job is to explain the risks; the client’s is to evaluate them and make the decision. Aircraft transaction decisions have a high economic impact. To the extent that you are affected by emotion, there is another risk: a client may agree to sub-optimal terms, blinded by having “felt” and “experienced” the aircraft. </p> </div> <div data-rss-type="text"> <p> If you feel afraid to walk away from the aircraft you “must buy,” or more importantly, tell the aviation professionals you’ve engaged to help that you’re now willing to assume all risks, stop. Take a step back and consider whether you are “emotionally com-promised” and should relinquish your command. Impatience will cost you money. So will emotion. </p> </div> <div data-rss-type="text"> <p> </p> </div> <div data-rss-type="text"> <p> <a href="/2014/07/dont-be-emotionally-compromised-2/"> Don’t Be Emotionally Compromised </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Fri, 04 Jul 2014 14:33:00 GMT https://www.businessaviationcounsel.com/2014/07/dont-be-emotionally-compromised-2 https://www.businessaviationcounsel.com/2013/08/nbaa-tax-regulatory-and-risk-management-conference-starts-the-sunday-before-nbaa-convention If you will be attending the NBAA’s annual convention this year in Las Vegas, be sure to attend the Annual NBAA Tax, Regulatory and Risk Management Conference.  The conference is an in depth review of the major issues facing aircraft owners and operators. Why can’t Part 91 operators operate in a single purpose entity?  How… The post NBAA Tax, Regulatory and Risk Management Conference starts the Sunday BEFORE NBAA Convention first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> If you will be attending the NBAA’s annual convention this year in Las Vegas, be sure to attend the Annual NBAA Tax, Regulatory and Risk Management Conference.  The conference is an in depth review of the major issues facing aircraft owners and operators. Why can’t Part 91 operators operate in a single purpose entity?  How can the IRS take the position that even Part 91 management agreements are subject to FET?  What’s the difference between personal business use and personal entertainment use of business aircraft and why does it matter?  How are companies addressing EU VAT issues in light of the elimination of the UK zero rated import?  These issues and many others of interest and concern are addressed at the conference.  I’ll be moderating the international panel and addressing EU-ETS, alternative solutions to the VAT issue, and others. </p> </div> <div data-rss-type="text"> <p> <a href="http://www.nbaa.org/events/taxes/2013/2013-nbaa-tax-conference-brochure.pdf" target="_blank"> Click here </a> for the brochure, and remember, if you are making your reservations, be sure to block out the 2 days before the convention (October 20 and 21) for the NBAA Tax Conference. </p> </div> <div data-rss-type="text"> <p> I look forward to seeing you there. </p> </div> <div data-rss-type="text"> <p> Regards. SHL. </p> </div> <div data-rss-type="text"> <p> <a href="/2013/08/nbaa-tax-regulatory-and-risk-management-conference-starts-the-sunday-before-nbaa-convention/"> NBAA Tax, Regulatory and Risk Management Conference starts the Sunday BEFORE NBAA Convention </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Sat, 03 Aug 2013 00:37:00 GMT https://www.businessaviationcounsel.com/2013/08/nbaa-tax-regulatory-and-risk-management-conference-starts-the-sunday-before-nbaa-convention https://www.businessaviationcounsel.com/2013/05/flying-to-or-within-the-eu-there-still-may-be-ways-to-address-vat U.S. registered aircraft operating within the UK or the EU are subject to being assessed a value added tax of up to 26% of the value of the aircraft.  This is generally due to the fact that the UK/EU view typical Part 91 operations as “commercial” under their rules.  While, in the good ‘ole days,… The post Flying to or Within the EU? There Still May be Ways to Address VAT. first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> U.S. registered aircraft operating within the UK or the EU are subject to being assessed a value added tax of up to 26% of the value of the aircraft.  This is generally due to the fact that the UK/EU view typical Part 91 operations as “commercial” under their rules.  While, in the good ‘ole days, large jets could be imported at a zero rate of VAT through the UK for free circulation, under pressure from the EU, the UK eliminated that process of import. </p> </div> <div data-rss-type="text"> <p> Can a permanent import for free circulation still be accomplished on a U.S. registered aircraft? The answer, as usual, is “it depends.”  One alternative involves  an import into Denmark.  Other alternatives involve establishing a connection with a tax-neutral jurisdiction such as the Isle of Man.  It is much more difficult, however, to plan for the import after the aircraft is acquired into its U.S. tax-focused structure, since many of the requirements of the import involve interrelationships with the jurisdiction. So, as always, plan ahead if you think that the aircraft will be spending time in the EU or the UK.  We have had the opportunity to assist clients with coordination of these imports, including being in attendance with the aircraft overseas for the import, and look forward to being of service.  We will be in attendance at the ICM Aviation Conference on the Isle of Man in June and look forward to seeing you there. </p> </div> <div data-rss-type="text"> <p>   </p> </div> <div data-rss-type="text"> <p>   </p> </div> <div data-rss-type="text"> <p>   </p> </div> <div data-rss-type="text"> <p>   </p> </div> <div data-rss-type="text"> <p> <a href="/2013/05/flying-to-or-within-the-eu-there-still-may-be-ways-to-address-vat/"> Flying to or Within the EU? There Still May be Ways to Address VAT. </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Mon, 13 May 2013 18:11:00 GMT https://www.businessaviationcounsel.com/2013/05/flying-to-or-within-the-eu-there-still-may-be-ways-to-address-vat https://www.businessaviationcounsel.com/2013/04/selling-your-u-s-registered-business-jet-dont-forget-to-export-from-the-uk For many years, large U.S. registered aircraft were routinely imported into the UK at a zero rate of VAT  for free circulation in the EU.  It was a relatively simple process and the cost was minimal compared with the exposure to VAT one had for operating within the EU (around 26%).  However, about 2 years… The post Selling Your U.S. Registered Business Jet? Don’t Forget to EXPORT FROM THE UK! first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> For many years, large U.S. registered aircraft were routinely imported into the UK at a zero rate of VAT  for free circulation in the EU.  It was a relatively simple process and the cost was minimal compared with the exposure to VAT one had for operating within the EU (around 26%).  However, about 2 years ago, under pressure from the EU, the UK discontinued that type of import.  It is not uncommon when closing on a sale of an aircraft that nothing is done about the UK import completed many years earlier.  So, what should be done?  Technically, the prior importation needs to be cancelled, but more accurately, the aircraft needs to be “exported” from the UK upon sale of the aircraft.  Luckily, the UK does not require that the aircraft be in the UK in order to accomplish the export.  So don’t forget to add a UK export to your closing checklist! </p> </div> <div data-rss-type="text"> <p>   </p> </div> <div data-rss-type="text"> <p> <a href="/2013/04/selling-your-u-s-registered-business-jet-dont-forget-to-export-from-the-uk/"> Selling Your U.S. Registered Business Jet? Don’t Forget to EXPORT FROM THE UK! </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Sat, 20 Apr 2013 16:43:00 GMT https://www.businessaviationcounsel.com/2013/04/selling-your-u-s-registered-business-jet-dont-forget-to-export-from-the-uk https://www.businessaviationcounsel.com/2013/01/the-2-minute-warning-and-business-aviation A friend of mine asked me if I watch professional basketball on TV. My knee-jerk reaction was to joke that I only watch the last 2 or 3 minutes because that’s when the game is exciting and is won.  Then it occurred to me that some think that the closing call of a business aviation… The post The 2-Minute Warning and Business Aviation first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> A friend of mine asked me if I watch professional basketball on TV. My knee-jerk reaction was to joke that I only watch the last 2 or 3 minutes because that’s when the game is exciting and is won.  Then it occurred to me that some think that the closing call of a business aviation transaction is where “it all happens” and what an unfortunate perception that is.  Like basketball, or any other sport, the game is won long before the last two minutes or the two-minute warning.  There is planning, hard work and during  the 3 3/4 quarters before the end is when each team is studying, learning, and planning for the end-game. You can see during a Heat game that Lebron James and Dwayne Wade are studying their opponents, testing the defense for weaknesses, and seeing where their opponents’ strengths are, so that when the time comes, they can execute their strategy and score.   If an aircraft purchase agreement is signed, and a  business aviation transaction goes smoothly at the end (we like to say “closes with a fizzle”), with relevant registration, state tax, federal tax, DOT, FAA and other issues addressed,  it is only because a great deal of work has been done, and experience brought to bear, to plan for it.  The old practice that you hear from some of just signing a “form” purchase agreement and delivering a bill of sale are long gone.  Business aircraft transactions are complex, and require significant attention to many different issues. </p> </div> <div data-rss-type="text"> <p> So, when I’m asked again if I watch basketball, my answer will be “I may only watch the last couple of minutes, but I appreciate that it took 58 minutes of blood, sweat and tears to get there.” </p> </div> <div data-rss-type="text"> <p> SHL. </p> </div> <div data-rss-type="text"> <p> <a href="/2013/01/the-2-minute-warning-and-business-aviation/"> The 2-Minute Warning and Business Aviation </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Sun, 13 Jan 2013 22:23:00 GMT https://www.businessaviationcounsel.com/2013/01/the-2-minute-warning-and-business-aviation https://www.businessaviationcounsel.com/2013/01/your-plane-will-punish-you An article written by Mr. Lapayowker appearing in the JSSI Airways newsletter is available here Airways Article. The article addresses the benefits of a consistent maintenance program and the impact that it has on the aircraft during the re-sale process. It also contains other helpful hints. The post Your Plane Will Punish You… first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> An article written by Mr. Lapayowker appearing in the JSSI Airways newsletter is available here <a href="/2013/01/your-plane-will-punish-you/airways_lapayowker/"> Airways Article </a> . The article addresses the benefits of a consistent maintenance program and the impact that it has on the aircraft during the re-sale process. It also contains other helpful hints. </p> </div> <div data-rss-type="text"> <p> <a href="/2013/01/your-plane-will-punish-you/"> Your Plane Will Punish You… </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Mon, 07 Jan 2013 16:46:00 GMT https://www.businessaviationcounsel.com/2013/01/your-plane-will-punish-you https://www.businessaviationcounsel.com/2012/12/the-faa-aircraft-registry-is-closed-how-can-we-close At the last moment, the FAA announced that the registry would be closed on December 24. But we had a closing!  What do we do? In the last week of the year we often receive calls from clients that have just determined that they need to close on the purchase or sale of their aircraft… The post The FAA Aircraft Registry is Closed, HOW CAN WE CLOSE? first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> A bill of sale should contain text to implement the conveyance as well as the names of the parties, price or consideration being paid (price is typically found in the purchase agreement and that’s fine), description of the good being sold, and the date. </p> </div> <div data-rss-type="text"> <p> So, let’s say that we must close on Christmas Eve and the FAA just announced they’ll be closed.  Can you still effectively transfer title to the aircraft and close your transaction?  Of course.  If the bill of sale is dated and delivered to the buyer, and the other requirements set forth in your purchase agreement for title transfer are complete, your transaction is closed.  And what if you don’t get that done on Christmas Eve, can you do it on Christmas Day?  The law doesn’t take a holiday.  The same rules will apply. </p> </div> <div data-rss-type="text"> <p> The foregoing assumes of course that the parties are comfortable with the lien and registration status of the aircraft (perhaps searches were done very recently). </p> </div> <div data-rss-type="text"> <p> <a href="/2012/12/the-faa-aircraft-registry-is-closed-how-can-we-close/"> The FAA Aircraft Registry is Closed, HOW CAN WE CLOSE? </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Fri, 21 Dec 2012 20:45:00 GMT https://www.businessaviationcounsel.com/2012/12/the-faa-aircraft-registry-is-closed-how-can-we-close https://www.businessaviationcounsel.com/2012/11/the-holiday-season-is-here-lets-be-careful-out-there December is a popular time to take delivery of new or pre-owned aircraft.  Some buyers of new aircraft may also be anticipating bonus depreciation this year.  But the holiday season also draws aircraft owners into the trap of using their newly-acquired aircraft for non-business entertainment flights and perhaps for international trips.  It is very important… The post The Holiday Season is Here — Let’s Be Careful Out There! first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> December is a popular time to take delivery of new or pre-owned aircraft.  Some buyers of new aircraft may also be anticipating bonus depreciation this year.  But the holiday season also draws aircraft owners into the trap of using their newly-acquired aircraft for non-business entertainment flights and perhaps for international trips.  It is very important to be careful about  this type of use  in 2012 so that any tax planning that you have done (e.g. bonus depreciation, entertainment disallowance) will not be adversely affected by actual flight operations.  This can be especially surprising if you acquire an aircraft in December.  Think about it, instead of trips spread over 365 days and the ability to “catch up” with business flights, every day of December works out to be about 3% of the entire tax year of 2012 with respect to the aircraft!  So, if the aircraft will be out of the country for 17 days in December, the aircraft has arguably been used predominantly outside of the U.S. during 2012 and ineligible for depreciation.  If there is significant entertainment use in December,  the entertainment disallowance can have a severely adverse impact on the deduction you thought you had.  Let’s take an example of a new aircraft qualifying for 50% bonus depreciation that is acquired on December 15, 2012.  The entire tax year is 16 days.  You can see how each use of the aircraft can have a significant impact on any planned tax benefit.  Conservative advise is to  <span> only fly business trips </span> with aircraft newly acquired in December 2012.  Of course, if you have owned your aircraft since January 1, 2012, it’s a good idea to take a look at your non-business and international utilization to see where you are. So let’s be careful out there! </p> </div> <div data-rss-type="text"> <p> Best wished for a happy and healthy holiday season. </p> </div> <div data-rss-type="text"> <p> SHL. </p> </div> <div data-rss-type="text"> <p> <a href="/2012/11/the-holiday-season-is-here-lets-be-careful-out-there/"> The Holiday Season is Here — Let’s Be Careful Out There! </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Fri, 23 Nov 2012 16:08:00 GMT https://www.businessaviationcounsel.com/2012/11/the-holiday-season-is-here-lets-be-careful-out-there https://www.businessaviationcounsel.com/2012/10/473 We are excited to be appearing in the November issue of  Plane & Pilot magazine in its section entitled 2012 Top Aviation Attorneys!   The post Plane & Pilot Magazine’s 2012 Top Aviation Attorneys first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> We are excited to be appearing in the November issue of   <a href="/2012/10/473/plane-pilot/"> Plane &amp; Pilot </a>  magazine in its section entitled 2012 Top Aviation Attorneys! </p> </div> <div data-rss-type="text"> <p>   </p> </div> <div data-rss-type="text"> <p> <a href="/2012/10/473/"> Plane &amp; Pilot Magazine’s 2012 Top Aviation Attorneys </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Thu, 04 Oct 2012 22:14:00 GMT https://www.businessaviationcounsel.com/2012/10/473 https://www.businessaviationcounsel.com/2012/09/your-plane-will-punish-you-if-you-dont-behave Plan Your Preowned Sales Process With Care WE SPEND OUR TIME HELPING AIRCRAFT OWNERS NAVIGATE the process of the sale and purchase of new and pre-owned aircraft. And there is one universal truth: You don’t really ever know if your aircraft has been cared for properly until it goes through a pre-purchase inspection in connection… The post Your Plane Will Punish You… If You Don’t Behave first appeared on Lapayowker Jet Counsel. <h2> Plan Your Preowned Sales Process With Care </h2> <div data-rss-type="text"> <p> <b> WE SPEND OUR TIME HELPING AIRCRAFT OWNERS NAVIGATE </b> the process of the sale and purchase of new and pre-owned aircraft. And there is one universal truth: You don’t really ever know if your aircraft has been cared for properly until it goes through a pre-purchase inspection in connection with its sale to the next owner. In my experience, there are generally two kinds of aircraft owners. The first wants the aircraft managed and maintained properly and professionally, understanding that quality has a cost. The second likes the idea of having an aircraft and can well afford the purchase, but begrudges every nickel required to manage and maintain it. Often the latter do not understand — or want to face — the difference be-tween “high-quality” and “value” in aviation, both of which require timely performance of all required maintenance. They think that, all things being equal (which experienced owners know is not so), “cheap” means “value.” And while this may seem like shrewd economics at the time, sooner or later the aircraft will deliver a brutal and expensive reminder to the contrary, especially at time of resale. </p> </div> <div data-rss-type="text"> <p> Let’s review the process for the typical sale of a pre-owned aircraft. Initially, the parties enter into an offer to purchase, setting forth the basic terms of the transaction including the price, deposit amount and, importantly, the required technical delivery condition of the aircraft and identification of the inspection facility that will perform the pre-purchase inspection (typically selected by the buyer and reasonably acceptable to the seller). You will never ever under any circumstance sell a jet aircraft to a retail buyer without a pre-purchase inspection to confirm that the aircraft is in satisfactory technical condition. </p> </div> <div data-rss-type="text"> <p> Every offer assumes that the aircraft is airworthy, has had maintenance performed as required by the manufacturer’s recommended maintenance program, is current and up-to-date on all calendar and cyclical items, and is in compliance with airworthiness directives (that is, changes to the aircraft mandated by the FAA) and mandatory service bulletins (essentially, changes to the aircraft required by the manufacturer to maintain the airworthiness of the aircraft). The economic impact is that if the aircraft does not meet the delivery conditions it is the seller’s responsibility to pay to have the aircraft brought up to date (at least in the current market). </p> </div> <div data-rss-type="text"> <p> As part of the preliminary process after the offer is signed, there can be a cursory visual inspection. This usually consists of the buyer going to see the aircraft and also includes a cursory records review to ascertain the status of the aircraft and any upcoming “due” items: that is, inspections that are anticipated in the near future, current airworthiness directives or mandatory service bulletins. The initial review of the written and digital maintenance records contribute to the scope of the inspection that the buyer will include in the purchase agreement, but more importantly, forms the basis for a buyer’s impression of the aircraft. This is not just a technical impression, but rather an impression of whether the aircraft has been consistently, routinely and professionally maintained — quite simply, how the seller has cared for the aircraft. Needless to say, that impression influences the buyer’s opinion as to whether the preliminary purchase price is appropriate for the condition of the aircraft. Deals have fallen apart after the merest visual inspection (and no matter what the reason, everyone will know that the deal crashed even before the formal prebuy, casting a long shadow on the seller’s prospects for a quick sale). </p> </div> <div data-rss-type="text"> <p> Following the visual inspection, the parties negotiate a more formal purchase agreement which contains the scope of the pre-purchase inspection and other customary terms. For a Bombardier aircraft, this can be as detailed as a “Level III” inspection; for a Gulfstream an “aircraft records and condition survey” (or similar), together with additional inspections that the buyer may desire as a result of the records review along with repair facility recommendations (such as performing an engine and APU boroscope ). </p> </div> <div data-rss-type="text"> <p> The purchase agreement will provide that following receipt of the inspection report, the buyer will have a number of options. Typically, the buyer will have the option to accept the aircraft conditionally subject to the seller’s correction of discrepancies defined in the agreed-upon delivery conditions. What this means is that if the re-pair facility determined that the aircraft doesn’t meet the technical conditions, the seller will need to pay to rectify the discrepancy(ies) in order for the aircraft to be returned to service so that the buyer is committed to buy the aircraft. </p> </div> <div data-rss-type="text"> <p> Consider the implications. The seller hasn’t performed inspections on time? The seller needs to pay for it. ADs or MSBs not com-plied with in a timely fashion? Parts out of limits? They need to pay for it. Records missing or not complete? They need to pay to research and fill in the blanks. The maintenance service contract not paid cur-rent? The seller needs to bring it current. And instead of any fixes being done when they should have been — and by the seller’s maintenance facility, flight department or management company — now it will be done at the buyer’s selected facility, under time pressure and, in all likelihood, at a significantly increased cost. </p> </div> <div data-rss-type="text"> <p> Perhaps the agreement will have an outright rejection right which allows the buyer to have the deposit refunded if the aircraft is not acceptable for any reason. No matter the strength of any confidentiality provisions, there is little doubt that those in the market soon will learn of the rejection and the reasons for it. That can have a severe impact on the seller’s efforts to move the aircraft. And to add insult to injury, no matter why the buyer walked away, the seller will be required to pay to have the aircraft returned to service because the inspection facility is obligated not to release the aircraft for flight until any discrepancies found during the prebuy are corrected. It sounds like a double whammy — and it is! The seller not only lost the deal; but also must pay for any and all discrepancy rectification. </p> </div> <div data-rss-type="text"> <p> How can the surprises be mitigated? Choose experienced and professional management for the aircraft (whether in-house or management company), use reputable maintenance facilities experienced with your aircraft type, and don’t skimp — or sooner or later, your aircraft will punish you. </p> </div> <div data-rss-type="text"> <p> </p> </div> <div data-rss-type="text"> <p> </p> </div> <div data-rss-type="text"> <p> </p> </div> <div data-rss-type="text"> <p> <a href="/2012/09/your-plane-will-punish-you-if-you-dont-behave/"> Your Plane Will Punish You… If You Don’t Behave </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Thu, 27 Sep 2012 14:35:00 GMT https://www.businessaviationcounsel.com/2012/09/your-plane-will-punish-you-if-you-dont-behave https://www.businessaviationcounsel.com/2012/09/2012-nbaa-tax-regulatory-and-risk-management-conference Please join me and other aviation professionals in Orlando on October 28 and 29, 2012 for the NBAA’s Annual Tax, Regulatory and Risk Management Conference.   The conference is designed to give business aviation professionals and their advisors an opportunity to learn about federal, state and local regulations and tax changes in an interactive format.… The post 2012 NBAA Tax, Regulatory and Risk Management Conference first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> Please join me and other aviation professionals in Orlando on October 28 and 29, 2012 for the NBAA’s Annual Tax, Regulatory and Risk Management Conference.   The conference is designed to give business aviation professionals and their advisors an opportunity to learn about federal, state and local regulations and tax changes in an interactive format. From breakout sessions to discussion-based workshops on key topics, this conference allows attendees to create a customized learning experience.  Join your peers and the recognized industry experts on business aviation tax and regulatory policy to stay current on these important topics.  Presentations in this year’s conference include:   (i) Background and Basics: Federal Excise Taxes, (ii) Background and Basics:  Personal Use – Imputing Income and Deductions, (iii) FAA and DOT Regulatory Issues, and (iv) the panel discussion that I’ll be moderating:  International Operation and Tax Issues- Focus on the European Union including Value Added Taxes and EU-ETS. </p> </div> <div data-rss-type="text"> <p> The conference brochure and information about the Convention may be found here: <a href="http://www.nbaa.org/events/taxes/2012/"> NBAA Events </a> . </p> </div> <div data-rss-type="text"> <p> We look forward to seeing you at NBAA 2012! </p> </div> <div data-rss-type="text"> <p> Regards. SHL. </p> </div> <div data-rss-type="text"> <p> <a href="/2012/09/2012-nbaa-tax-regulatory-and-risk-management-conference/"> 2012 NBAA Tax, Regulatory and Risk Management Conference </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Tue, 18 Sep 2012 22:16:00 GMT https://www.businessaviationcounsel.com/2012/09/2012-nbaa-tax-regulatory-and-risk-management-conference https://www.businessaviationcounsel.com/2012/03/we-rock-to-benefit-stomach-cancer-research On March 4, 2012, CantStomachCancer had its third annual benefit at the Improv Hard Rock, Hollywood, Florida.  Can’t Stomach Cancer is a charitable foundtion that raises money for stomach cancer research.  Lapayowker Jet Counsel, P.A.., PlaneTalkRadio and Aero Management Solutions, LLC were sponsors of the event for a second year, but instead of a comedy… The post We Rock to Benefit Stomach Cancer Research! first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> On March 4, 2012, CantStomachCancer had its third annual benefit at the Improv Hard Rock, Hollywood, Florida.  Can’t Stomach Cancer is a charitable foundtion that raises money for stomach cancer research.  Lapayowker Jet Counsel, P.A.., PlaneTalkRadio and Aero Management Solutions, LLC were sponsors of the event for a second year, but instead of a comedy act like Stewart did last year, this year we had a surprise for everyone!  We hope you enjoy!  <a href="http://youtu.be/6INmcOcscc0"> http://youtu.be/6INmcOcscc0 </a> </p> </div> <div data-rss-type="text"> <p> <a href="/2012/03/we-rock-to-benefit-stomach-cancer-research/"> We Rock to Benefit Stomach Cancer Research! </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Wed, 07 Mar 2012 16:59:00 GMT https://www.businessaviationcounsel.com/2012/03/we-rock-to-benefit-stomach-cancer-research https://www.businessaviationcounsel.com/2011/12/aircraft-transactions-conference-february-9-2012 Mr. Lapayowker will be joining other speakers at the NBAA’s Aircraft Transactions Conference to be held in Deerfield Beach, Florida on February 9-10, 2012.  The topic of his presentation with Jeff Wieand of Boston JetSearch, Stewart Pearl, Esq., and Alvaro Pascotto, will be aircraft transactions in transition.  They will be discussing aircraft offers to purchase,… The post Aircraft Transactions Conference February 9, 2012 first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> Mr. Lapayowker will be joining other speakers at the NBAA’s Aircraft Transactions Conference to be held in Deerfield Beach, Florida on February 9-10, 2012.  The topic of his presentation with Jeff Wieand of Boston JetSearch, Stewart Pearl, Esq., and Alvaro Pascotto, will be aircraft transactions in transition.  They will be discussing aircraft offers to purchase, purchase agreements and related issues in connection with the acquisition of an aircraft. </p> </div> <div data-rss-type="text"> <p> To register, go to <a href="http://www.nbaa.org"> www.nbaa.org </a> . </p> </div> <div data-rss-type="text"> <p> We hope to see you there. </p> </div> <div data-rss-type="text"> <p>   </p> </div> <div data-rss-type="text"> <p> <a href="/2011/12/aircraft-transactions-conference-february-9-2012/"> Aircraft Transactions Conference February 9, 2012 </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Sun, 18 Dec 2011 20:04:00 GMT https://www.businessaviationcounsel.com/2011/12/aircraft-transactions-conference-february-9-2012 https://www.businessaviationcounsel.com/2011/12/barr-requests-valid-security-concern-no-longer-required BLOCK AIRCRAFT REGISTRATION REQUESTS “VALID SECURITY CONCERN” NO LONGER REQUIRED The language of the Department of Transportation’s budget for Fiscal Year 2012  prohibits the Federal Aviation Administration (FAA) from requiring certification of a “valid security concern” as a condition to blocking aircraft tail numbers from tracking by online services.  The National Business Aviation Association is… The post BARR Requests – Valid Security Concern No Longer Required first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> The language of the Department of Transportation’s budget for Fiscal Year 2012  <span> prohibits </span> the Federal Aviation Administration (FAA) from requiring certification of a “valid security concern” as a condition to blocking aircraft tail numbers from tracking by online services.  The National Business Aviation Association is monitoring FAA’s implementation of the revised BARR system. </p> </div> <div data-rss-type="text"> <p> Until that system is finalized, FAA will no longer need to certify to (or mention) a “valid security concern” in order to have the blocking request accepted. </p> </div> <div data-rss-type="text"> <p> <a href="/2011/12/barr-requests-valid-security-concern-no-longer-required/"> BARR Requests – Valid Security Concern No Longer Required </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Sun, 18 Dec 2011 17:03:00 GMT https://www.businessaviationcounsel.com/2011/12/barr-requests-valid-security-concern-no-longer-required https://www.businessaviationcounsel.com/2011/12/appointment-as-vice-chair-of-nbaa-tax-committee APPOINTMENT AS VICE CHAIR OF NBAA TAX COMMITTEE In conjunction with the annual meeting of the Tax Committee of the National Business Aviation Association, Stewart was appointed to be Vice Chair of the NBAA Tax Committee serving a two year term. Having served as Recording Secretary for the past two years, and before that Chair… The post APPOINTMENT AS VICE CHAIR OF NBAA TAX COMMITTEE first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> <b> <b> APPOINTMENT AS VICE CHAIR OF NBAA TAX COMMITTEE </b> </b> </p> </div> <div data-rss-type="text"> <p> In conjunction with the annual meeting of the Tax Committee of the National Business Aviation Association, Stewart was appointed to be Vice Chair of the NBAA Tax Committee serving a two year term. </p> </div> <div data-rss-type="text"> <p> Having served as Recording Secretary for the past two years, and before that Chair of the Committee’s Aircraft Transactions Working Group and Vice Chair of its Regulatory Working Group, Stewart is flattered by the Committee’s appointment and looks forward to actively working with the leadership team and NBAA liaisons to address significant issues facing business aviation. </p> </div> <div data-rss-type="text"> <p> <a href="/2011/12/appointment-as-vice-chair-of-nbaa-tax-committee/"> APPOINTMENT AS VICE CHAIR OF NBAA TAX COMMITTEE </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Sun, 18 Dec 2011 17:00:00 GMT https://www.businessaviationcounsel.com/2011/12/appointment-as-vice-chair-of-nbaa-tax-committee https://www.businessaviationcounsel.com/2011/12/is-your-new-aircraft-being-sent-outside-the-usa-for-completion-at-year-end IS YOUR NEW AIRCRAFT BEING SENT OUTSIDE THE USA FOR COMPLETION AT YEAR-END? Many clients find advantages in acquiring title to “green” aircraft before the end of the year but are unaware of potential pitfalls that could impact the tax depreciation benefits on their lease financing. Green aircraft are aircraft that are delivered from the… The post IS YOUR NEW AIRCRAFT BEING SENT OUTSIDE THE USA FOR COMPLETION AT YEAR-END? first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> <b> <b> IS YOUR NEW AIRCRAFT BEING SENT OUTSIDE THE USA <b> FOR COMPLETION </b> AT YEAR-END </b> <b> ? </b> </b> </p> </div> <div data-rss-type="text"> <p> Many clients find advantages in acquiring title to “green” aircraft before the end of the year but are unaware of potential pitfalls that could impact the tax depreciation benefits on their lease financing. Green aircraft are aircraft that are delivered from the manufacturer but have not been completed. Typically, an aircraft that has not been painted possesses a “green” tint, hence the moniker. </p> </div> <div data-rss-type="text"> <p> <span> Lease Financing </span> </p> </div> <div data-rss-type="text"> <p> When a client purchases an aircraft by way of lease financing, the lease contains certain restrictions and covenants regarding its operation. One of the most common restrictions includes limiting the aircraft’s use outside of the United States. This restriction is most often related to ensuring that the financing company is eligible to receive federal tax depreciation benefits. In fact, many times favorable terms of lease financing are directly related to the ability of the financing company to receive depreciation. What happens if the primary assumptions underlying the depreciation conclusions that the lessor reached are violated and no one in the room saw the issue coming?  Indemnities contained in the lease require that the lessee indemnify the lessor for the lost tax benefits. </p> </div> <div data-rss-type="text"> <p> Before the closing on a new aircraft, the issue of putting the aircraft “in service” by conducting a business flight is normally discussed among the working group.  In the case of a leased aircraft, the aircraft is placed “in service” once the lessor has entered into a lease with its lessee.  But the analysis should not end there. Depending on the manufacturer, completion of the green aircraft may occur <span> outside the United States </span> . If the aircraft delivers green in December, and is immediately taken outside the USA for completion work, it is entirely possible that the aircraft will spend the majority (50%+) of its time during the tax year <span> outside the USA </span> , resulting not only in a violation of the lease covenant to operate the aircraft “predominantly” in the USA, but where there is bonus depreciation in play, a risk that depreciation cannot be taken. </p> </div> <div data-rss-type="text"> <p> <span> What to do? </span> </p> </div> <div data-rss-type="text"> <p> It is imperative that the transaction working group focus on not only the location of closing but the <span> location of the aircraft </span> between closing and the end of the year. If possible, you should include a provision in your purchase agreement that commits the manufacturer to keep the aircraft in the USA for more than 50% of the number of days between closing and the end of the year before it takes the aircraft out of the country for completion.  We have found that manufacturers are amenable to such arrangements (it is unlikely that much work will be done the last 10 days of the year on a newly delivered aircraft anyway). </p> </div> <div data-rss-type="text"> <p>   </p> </div> <div data-rss-type="text"> <p> <a href="/2011/12/is-your-new-aircraft-being-sent-outside-the-usa-for-completion-at-year-end/"> IS YOUR NEW AIRCRAFT BEING SENT OUTSIDE THE USA FOR COMPLETION AT YEAR-END? </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Sun, 18 Dec 2011 16:59:00 GMT https://www.businessaviationcounsel.com/2011/12/is-your-new-aircraft-being-sent-outside-the-usa-for-completion-at-year-end https://www.businessaviationcounsel.com/2011/12/american-jobs-act-could-change-depreciation-schedule AMERICAN JOBS ACT WOULD CHANGE DEPRECIATION SCHEDULE FOR GENERAL AVIATION AIRCRAFT The much-hyped jobs plan (American Jobs Act) by President Obama was revealed to Congress last week. While we will not debate the potential economic benefits of his plan, how he plans to pay for it is of concern to current and potential owners of… The post AMERICAN JOBS ACT COULD CHANGE DEPRECIATION SCHEDULE first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> SEC. 421. GENERAL AVIATION AIRCRAFT TREATED AS 7-YEAR PROPERTY.(a) IN GENERAL. —Subparagraph (C) of section 168(e)(3) of the Internal Revenue Code of 1986 (relating to classification of certain property) is amended by striking “and” at the end of clause (iv), by redesignating clause (v) as clause (vi), and by inserting after clause (iv) the following new clause:“(v) any general aviation aircraft, and”.(b) Class life. Paragraph (3) of section 168(g) Internal Revenue Code of 1986 is amended by inserting after subparagraph (E) the following new subparagraph:“(F) General aviation aircraft. In the case of any general aviation aircraft, the recovery period used for purposes of paragraph (2) shall be 12 years.”.(c) General aviation aircraft.–Subsection (i) of section 168 Internal Revenue Code of 1986 is amended by inserting after paragraph (19) the following new paragraph:“(20) General aviation aircraft.–The term `general aviation aircraft’ means any airplane or helicopter (including airframes and engines) not used in commercial or contract carrying of passengers or freight, but which primarily engages in the carrying of passengers.”.(d) Effective date. This section shall be effective for property placed in service after December 31, 2012. </p> </div> <div data-rss-type="text"> <p> <a href="/2011/12/american-jobs-act-could-change-depreciation-schedule/"> AMERICAN JOBS ACT COULD CHANGE DEPRECIATION SCHEDULE </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Sun, 18 Dec 2011 16:57:00 GMT https://www.businessaviationcounsel.com/2011/12/american-jobs-act-could-change-depreciation-schedule https://www.businessaviationcounsel.com/2011/01/2011-aircraft-registration-conference-aviation-transactions-in-transition The 2011 Aircraft Registration Conference presented by NBAA will be held in Naples, Florida on February 3-4, 2011 at the Naples Grande Beach Resort.  The conference will focus on “transition”, that is, changes in the way aircraft transactions are done, including some new trends.  Stewart will be speaking on the topic of Offers to Purchase… The post 2011 Aircraft Registration Conference – Aviation Transactions in Transition first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> The 2011 Aircraft Registration Conference presented by NBAA will be held in Naples, Florida on February 3-4, 2011 at the Naples Grande Beach Resort.  The conference will focus on “transition”, that is, changes in the way aircraft transactions are done, including some new trends.  Stewart will be speaking on the topic of Offers to Purchase in Transition, and related matters such as commonly negotiated terms and the perspective of different players in the transaction.  The seminar is not being given at an introductory level, but rather for those already experienced with aviation transactions. </p> </div> <div data-rss-type="text"> <p> Please join us.  Regards. SHL. </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com/wp-content/uploads/2011/01/2011-Aircraft-Registration-Conference-Brochure.pdf"> 2011 Aircraft Registration Conference Brochure </a> </p> </div> <div data-rss-type="text"> <p> <a href="/2011/01/2011-aircraft-registration-conference-aviation-transactions-in-transition/"> 2011 Aircraft Registration Conference – Aviation Transactions in Transition </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Tue, 04 Jan 2011 23:29:00 GMT https://www.businessaviationcounsel.com/2011/01/2011-aircraft-registration-conference-aviation-transactions-in-transition https://www.businessaviationcounsel.com/2010/11/south-floridas-best-lawyers The firm is pleased to announce that Stewart has been included in the ALM publication of South Florida’s Best Lawyers (2011 edition) in the area of Corporate Law – Aviation Law. Don’t miss the next episode of Plane Talk Radio which will air live at 12:30pm Eastern on Tuesday, November 16, 2010.  PTR’s guests will… The post South Florida’s Best Lawyers first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> The firm is pleased to announce that Stewart has been included in the ALM publication of South Florida’s Best Lawyers (2011 edition) in the area of Corporate Law – Aviation Law. </p> </div> <div data-rss-type="text"> <p> Don’t miss the next episode of Plane Talk Radio which will air live at 12:30pm Eastern on Tuesday, November 16, 2010.  PTR’s guests will be Gary Garofalo, Esq. and Barbara Spoor, a member of the board of directors of the National Aircraft Finance Association.  We will be discussing current developments in FAA regulations and aircraft finance. The show can be reached through www.blogtalkradio.com/planetalkradio. </p> </div> <div data-rss-type="text"> <p> Please join us! </p> </div> <div data-rss-type="text"> <p> <a href="/2010/11/south-floridas-best-lawyers/"> South Florida’s Best Lawyers </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Fri, 12 Nov 2010 14:01:00 GMT https://www.businessaviationcounsel.com/2010/11/south-floridas-best-lawyers https://www.businessaviationcounsel.com/2010/10/premiere-of-plane-talk-radio Just a reminder to join us for the premiere of PlaneTalkRadio on October 14, 2010 at 12:30pm Eastern, hosted by Stewart Lapayowker! http://www.blogtalkradio.com/planetalkradio The post Premiere of Plane Talk Radio first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> Just a reminder to join us for the premiere of PlaneTalkRadio on October 14, 2010 at 12:30pm Eastern, hosted by Stewart Lapayowker! </p> </div> <div data-rss-type="text"> <p> <a href="http://www.blogtalkradio.com/planetalkradio" target="_self"> http://www.blogtalkradio.com/planetalkradio </a> </p> </div> <div data-rss-type="text"> <p> <a href="/2010/10/premiere-of-plane-talk-radio/"> Premiere of Plane Talk Radio </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Wed, 13 Oct 2010 19:28:00 GMT https://www.businessaviationcounsel.com/2010/10/premiere-of-plane-talk-radio https://www.businessaviationcounsel.com/2010/08/stewart-lapayowker-selected-for-inclusion-in-2011-edition-of-the-best-lawyers-in-america Stewart Lapayowker was selected for inclusion in the 2011 edition of The Best Lawyers in America the areas of Corporate Law and Transportation Law. The post Stewart Lapayowker selected for inclusion in 2011 edition of The Best Lawyers in America first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> Stewart Lapayowker was selected for inclusion in the 2011 edition of The Best Lawyers in America the areas of Corporate Law and Transportation Law. </p> </div> <div data-rss-type="text"> <p> <a href="/2010/08/stewart-lapayowker-selected-for-inclusion-in-2011-edition-of-the-best-lawyers-in-america/"> Stewart Lapayowker selected for inclusion in 2011 edition of The Best Lawyers in America </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Mon, 16 Aug 2010 15:42:00 GMT https://www.businessaviationcounsel.com/2010/08/stewart-lapayowker-selected-for-inclusion-in-2011-edition-of-the-best-lawyers-in-america https://www.businessaviationcounsel.com/2010/06/go-for-the-fizzle What should you look for in a good, successful, closing?  Strangely, a fizzle.  That’s right, a fizzle. Those familiar with aircraft transactions know that the consummation of an aircraft purchase or sale occurs typically on a conference call with all relevant parties on the call with an escrow agent, a title company or local FAA… The post Go for the "Fizzle" first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> What should you look for in a good, successful, closing?  Strangely, a fizzle.  That’s right, a fizzle. </p> </div> <div data-rss-type="text"> <p> Those familiar with aircraft transactions know that the consummation of an aircraft purchase or sale occurs typically on a conference call with all relevant parties on the call with an escrow agent, a title company or local FAA counsel in Oklahoma City.  There are typically several weeks of work that have gone into the offer to purchase, the purchase agreement, the pre-purchase inspection, the buyer’s structuring of its operations to comply with FAA regulations, minimize state tax implications and maximize federal tax benefits, the preparation of conveyance documents, dry leases (if applicable) and other operational matters. </p> </div> <div data-rss-type="text"> <p> So, what should happen on the closing call in order for the closing to be considered successful?  Nothing. Absolutely nothing.  If the parties have open issues to resolve, the closing call is not the place for it.  The buyer’s and seller’s representatives should poll their respective sides to confirm that there are no open issues.  If there are, just don’t schedule the call.  The closing call has so many different people on the line, with sometimes differing agendas (and egos), that a small issue can become a war of wills. </p> </div> <div data-rss-type="text"> <p> Have a checklist, run through it several times before scheduling the closing call, and be sure that your counterpart is on the same page.  Only then should one schedule the closing call. </p> </div> <div data-rss-type="text"> <p> So what happens if issues are raised on the call, interrupting the flow?  Simple.  Adjourn the call or give the relevant parties the time to speak offline and resolve the issue.  Avoid doing it on the closing call unless you are absolutely sure of how the other party will react. </p> </div> <div data-rss-type="text"> <p> If the only voice you hear on the call is that of the escrow agent or local FAA counsel running through the documents in escrow, a description of the documents in escrow and confirmation that funds are sufficient, and nothing else  happens on the call other than the sound of  the grunting of the parties approving release of documents and funds, then in my view you have just experienced a successful  closing. </p> </div> <div data-rss-type="text"> <p> Go for the fizzle!  Success will be evident when  everyone’s patting themselves on the back for the great job they’ve done (after the FAA filing time is available). </p> </div> <div data-rss-type="text"> <p> SHL. </p> </div> <div data-rss-type="text"> <p> <a href="/2010/06/go-for-the-fizzle/"> Go for the "Fizzle" </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Wed, 30 Jun 2010 03:50:00 GMT https://www.businessaviationcounsel.com/2010/06/go-for-the-fizzle https://www.businessaviationcounsel.com/2010/05/proper-planning-for-aircraft-acquisition When considering the purchase or lease of an aircraft for personal or business travel needs, companies need to carefully examine their proposed expectations in aircraft use. This is essential because they will need to accurately estimate the anticipated tax and regulatory costs and will wish to determine how to best structure the ownership of the… The post Proper Planning for Aircraft Acquisition first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> When considering the purchase or lease of an aircraft for personal or business travel needs, companies need to carefully examine their proposed expectations in aircraft use. This is essential because they will need to accurately estimate the anticipated tax and regulatory costs and will wish to determine how to best structure the ownership of the aircraft for its desired use. </p> </div> <div data-rss-type="text"> <p> Many prospective aircraft owners do not properly appreciate the regulatory dilemma they are entering into with the purchase and subsequent use of an aircraft. Potential purchasers must consider all of the involved parties, acknowledging that the Internal Revenue Code and federal tax issues, state tax laws, and the Federal Aviation Administration all impose rules that impact the potential use of the aircraft. It can be difficult to balance the uncoordinated and often competing requirements of taxing authorities, which exists at both the federal and state levels. In addition, the FAA complicates both the tax analysis and the structuring of private aircraft transactions. </p> </div> <div data-rss-type="text"> <p> Companies considering purchasing corporate aircraft should consider the following issues before proceeding with the acquisition: <br/> Companies looking to require an aircraft should document why the company needs to purchase its own aircraft. To help decide what class of aircraft the company should buy, a travel profile should be developed that includes the number of passengers, average trip length and amount of baggage. This will help companies decide just what type of aircraft to purchase, so that their travel needs can be met. </p> </div> <div data-rss-type="text"> <p> Another critical decision that should be made is whether to set up a separate entity to acquire the aircraft. If this is a decision you decide to make, you should be careful not to violate the FAA rules that carrying company officials on a company aircraft must be incidental to the entity’s business. </p> </div> <div data-rss-type="text"> <p> Each state has its own sales and use taxes for aircraft. Companies should carefully research the relevant taxes and not depend solely on the seller’s advice. In fact, companies may wish to hire an aircraft tax specialist to do this research for them. <br/> If corporate aircraft owners don’t address these important issues, it could lead to lost tax deductions, penalties and interest. This, though, may be the least of their problems. If an accident or other incident occurs involving the aircraft, job losses and unnecessary liability could result from the failure to follow aircraft regulations. </p> </div> <div data-rss-type="text"> <p> Lapayowker Jet Counsel, P.A.. is an aviation transaction lawyer focusing on airplane and jet transactions. To learn more, visit <a href="https://www.businessaviationcounsel.com"> https://www.businessaviationcounsel.com. </a> </p> </div> <div data-rss-type="text"> <p> <a href="/2010/05/proper-planning-for-aircraft-acquisition/"> Proper Planning for Aircraft Acquisition </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Fri, 28 May 2010 12:20:00 GMT https://www.businessaviationcounsel.com/2010/05/proper-planning-for-aircraft-acquisition https://www.businessaviationcounsel.com/2010/05/understanding-airworthiness-certificates When acquiring a corporate aircraft, buyers must be aware of the various requirements that will be necessary to complete the purchase and make use of the aircraft. Under FAA guidelines, an aircraft may not operate in flight without a Certificate of Airworthiness. In the past, most corporate aircraft sold and purchased in the U.S. was… The post Understanding Airworthiness Certificates first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> When acquiring a corporate aircraft, buyers must be aware of the various requirements that will be necessary to complete the purchase and make use of the aircraft. Under FAA guidelines, an aircraft may not operate in flight without a Certificate of Airworthiness. </p> </div> <div data-rss-type="text"> <p> In the past, most corporate aircraft sold and purchased in the U.S. was between U.S. companies. As a result, it was unusual for a company to purchase an aircraft that was not registered in the United States. In recent years, we have seen an increase in the number of new and used corporate jet aircraft being sold to buyers outside the United States. As the number of used corporate aircraft from the U.S. to other parts of the world increases, and as manufacturers deliver greater numbers of new aircraft to buyers outside the U.S., the percentage of aircraft that are non-U.S. registered has greatly increased. When purchasing a corporate aircraft, this is something that U.S. buyers should be wary of. Perhaps the most significant concern is to be certain that the aircraft will qualify for a U.S. Certificate of Airworthiness. </p> </div> <div data-rss-type="text"> <p> An Airworthiness Certificate is an FAA document which grants authorization to operate an aircraft in flight. There are two different classifications of FAA Airworthiness Certificates: Standard Airworthiness Certificate and Special Airworthiness Certificate. <br/> The FAA may issue an applicant an Airworthiness Certificate when: </p> </div> <div data-rss-type="text"> <p> Registered owner or operator/agent registers the aircraft, </p> </div> <div data-rss-type="text"> <p> Applicant submits the application to the local FAA office, and </p> </div> <div data-rss-type="text"> <p> FAA determines the aircraft is eligible and is in a condition of safe operation </p> </div> <div data-rss-type="text"> <p> A Standard Airworthiness Certificate has no set expiration dates and will remain valid for as long as the aircraft meets its approved type design, is in a condition for safe operation and maintenance, and all preventive maintenance and alterations are performed in accordance with a country’s aviation regulations. However, if an aircraft is not maintained in accordance with regulatory requirements of the United States, the Certificate will be considered “not in effect” and the aircraft will have no flight authority. Once this designation has been made, flight authority will only be reinstated when the required maintenance is completed and then documented in the aircraft’s technical log books. </p> </div> <div data-rss-type="text"> <p> Certificates of airworthiness, once they are awarded, must be kept on board the aircraft by the operator and must be presented to aviation authorities whenever they are requested. Failure to do so may result in legal action. </p> </div> <div data-rss-type="text"> <p> Lapayowker Jet Counsel, P.A.. is an <a href="https://www.businessaviationcounsel.com"> aviation attorney </a> and <a href="https://www.businessaviationcounsel.com"> aviation transaction lawyer </a> , focusing on airplane and jet transactions. To learn more, visit Businessaviationcounsel.com. </p> </div> <div data-rss-type="text"> <p> <a href="/2010/05/understanding-airworthiness-certificates/"> Understanding Airworthiness Certificates </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Fri, 28 May 2010 12:18:00 GMT https://www.businessaviationcounsel.com/2010/05/understanding-airworthiness-certificates https://www.businessaviationcounsel.com/2010/05/registrations-of-aircraft-under-non-citizen-owner-trusts-resumes Yesterday,  FAA Chief Counsel David Grizzle distributed the attached letter.  FAA Letter. In summary, he is instructing FAA Aeronautical Counsel’s office and the registry to proceed with non-citizen trust registrations consistent with past practice.  While the FAA is reviewing their issues of concern, the FAA is committing to involve industry in the process and, if… The post Registrations of Aircraft under Non-Citizen Owner Trusts Resumes first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> Yesterday,  FAA Chief Counsel David Grizzle distributed the attached letter.  <a href="https://www.businessaviationcounsel.com/wp-content/uploads/2010/05/Trust-Issue-100513.pdf"> FAA Letter </a> . In summary, he is instructing FAA Aeronautical Counsel’s office and the registry to proceed with non-citizen trust registrations consistent with past practice.  While the FAA is reviewing their issues of concern, the FAA is committing to involve industry in the process and, if the rules will be changed, the formal Notice of Proposed Rule Making process will be used. </p> </div> <div data-rss-type="text"> <p> This is a welcome result.  However, I can’t help but think that the FAA’s precipitous actions over the last 10 days has eroded the confidence of non-citizens in the FAA and the stability of US registration. </p> </div> <div data-rss-type="text"> <p> Regards, SHL. </p> </div> <div data-rss-type="text"> <p> <a href="/2010/05/registrations-of-aircraft-under-non-citizen-owner-trusts-resumes/"> Registrations of Aircraft under Non-Citizen Owner Trusts Resumes </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Fri, 14 May 2010 18:23:00 GMT https://www.businessaviationcounsel.com/2010/05/registrations-of-aircraft-under-non-citizen-owner-trusts-resumes https://www.businessaviationcounsel.com/2010/05/faa-halts-non-u-s-citizen-owner-trust-registrations Yesterday, the FAA Aeronautical Counsel Center’s office halted approval of non-citizen owner trusts and directed the FAA examiners office to cease processing registration of aircraft by those trusts.   Industry participants are attempting to enter into a meaningful dialogue on the matter.   There has not as yet been any clarification as to whether the FAA’s position… The post FAA Halts Non-U.S. Citizen Owner Trust Registrations first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> Yesterday, the FAA Aeronautical Counsel Center’s office halted approval of non-citizen owner trusts and directed the FAA examiners office to cease processing registration of aircraft by those trusts.   Industry participants are attempting to enter into a meaningful dialogue on the matter.   <a href="https://www.businessaviationcounsel.com/wp-content/uploads/2010/05/5644064_1.pdf"> </a> There has not as yet been any clarification as to whether the FAA’s position will be applied retroactively. </p> </div> <div data-rss-type="text"> <p> Owner trusts are commonly used by non-U.S. citizens to register aircraft with the FAA.  Basically, a non-U.S. company enters into a trust agreement with a financial institution that is a U.S. citizen. The trustee (referred to as an “owner trustee”) then acquires and registers the aircraft in its name as owner trustee.  It then typically will provide the aircraft to the beneficial owner through a lease or operating agreement.  The FAA has approved thousands of these types of trusts over the years. </p> </div> <div data-rss-type="text"> <p> The FAA’s action has the potential to impact pending transactions, sales by manufacturers of new aircraft, sales of pre-owned aircraft to foreign buyers, among others. </p> </div> <div data-rss-type="text"> <p> We will continue to monitor the situation. </p> </div> <div data-rss-type="text"> <p> Regards. SHL. </p> </div> <div data-rss-type="text"> <p> <a href="/2010/05/faa-halts-non-u-s-citizen-owner-trust-registrations/"> FAA Halts Non-U.S. Citizen Owner Trust Registrations </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Fri, 07 May 2010 18:00:00 GMT https://www.businessaviationcounsel.com/2010/05/faa-halts-non-u-s-citizen-owner-trust-registrations https://www.businessaviationcounsel.com/2010/04/corporate-aircraft-deals-are-getting-done This month we handled a transaction what we have affectionately referred to as the “Triple Lindy.”  You may recall Rodney Dangerfield’s movie Back to School.  In the movie, Rodney stuns the diving  competition when he dives from the diving board on to another and then on to a third, and wins the diving meet.  The… The post Corporate Aircraft Deals Are Getting Done first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> This month we handled a transaction what we have affectionately referred to as the “Triple Lindy.”  You may recall Rodney Dangerfield’s movie Back to School.  In the movie, Rodney stuns the diving  competition when he dives from the diving board on to another and then on to a third, and wins the diving meet.  The transaction we handled involved the purchase by our client of 3 aircraft owned by 3 different parties and the simultaneous trade of the 3 aircraft through our client to the parties, including de-registrations and re-registrations in the U.S.   Two of the aircraft were registered in  countries other than the U.S. and the parties were on 5 continents.   The point is that deals are being done, and foreign buyers are taking advantage of pricing on large aircraft.    Attached is a press release with further information of interest.  <a href="https://www.businessaviationcounsel.com/wp-content/uploads/2010/04/4-28-2010-dBusinessNews-Jack-Prewitt-Assoc.1.pdf"> 4-28-2010 dBusinessNews </a> We thank  Jack Prewitt &amp; Associates, Inc. for permitting us to announce the deal on our blog. </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com/wp-content/uploads/2010/04/4-28-2010-dBusinessNews-Jack-Prewitt-Assoc.1.pdf"> <br/> </a> </p> </div> <div data-rss-type="text"> <p> Regards. SHL. </p> </div> <div data-rss-type="text"> <p> <a href="/2010/04/corporate-aircraft-deals-are-getting-done/"> Corporate Aircraft Deals Are Getting Done </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Thu, 29 Apr 2010 17:00:00 GMT https://www.businessaviationcounsel.com/2010/04/corporate-aircraft-deals-are-getting-done https://www.businessaviationcounsel.com/2010/04/the-importance-of-a-letter-of-intent-when-purchasing-a-corporate-aircraft When purchasing a corporate aircraft, there are several important steps that must be taken after a buying team has been established. First among these important steps is the creation of a Letter of Intent (LOI). The buyer and seller should work closely together to negotiate and sign the LOI for the aircraft’s purchase. While a… The post The Importance of a Letter of Intent When Purchasing a Corporate Aircraft first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> <b> When purchasing a corporate aircraft, there are several important steps that must be taken after a buying team has been established. First among these important steps is the creation of a Letter of Intent (LOI). The buyer and seller should work closely together to negotiate and sign the LOI for the aircraft’s purchase. </b> </p> </div> <div data-rss-type="text"> <p> <b> </b> </p> </div> <div data-rss-type="text"> <p> While a LOI is a small document, it is essential because it helps guide the transaction. Without a LOI, the parties will lack the appropriate direction to move forward with the purchase and may have differing expectations. Furthermore, they may get bogged down in the Aircraft Purchase Agreement (APA) details, and this might delay the transaction or even prevent it from occurring at all. </p> </div> <div data-rss-type="text"> <p> A Letter of Intent should cover the following: </p> </div> <div data-rss-type="text"> <p> • Contain a description of exactly what is being purchased. This should include the make, model, any serial numbers, status of maintenance, and the condition of the aircraft. </p> </div> <div data-rss-type="text"> <p> • Set the purchase price of the aircraft. </p> </div> <div data-rss-type="text"> <p> • Establish what kind of deposit is necessary for the aircraft purchase, who will hold this deposit, and what the terms will be if it is forfeited. Also, it’s important to outline who will pay the agent’s escrow fees. </p> </div> <div data-rss-type="text"> <p> • Lay out the pre-purchase aircraft inspection that includes the allocation of costs and acceptance criteria. Be sure to include details about the location of the inspection facility, the scope of the inspection, including information about test flights, timing, and who pays for the inspection and the actual movement of the aircraft to the inspection facility. In addition, you will also need to establish the parties’ rights and obligations in the event of a successful or unsuccessful inspection. </p> </div> <div data-rss-type="text"> <p> • Agree to negotiate and enter into a definitive purchase agreement within a specified amount of time. </p> </div> <div data-rss-type="text"> <p> Crafting a letter of intention is an inexpensive option that will save both buyer and seller a great amount of time. A good letter of intent will make the aircraft purchase go smoothly with as little conflict as possible. </p> </div> <div data-rss-type="text"> <p> Lapayowker Jet Counsel, P.A.. is an <a href="https://www.businessaviationcounsel.com"> aviation attorney </a> and <a href="https://www.businessaviationcounsel.com"> aviation transaction lawyer </a> , focusing on airplane and jet transactions. To learn more, visit Businessaviationcounsel.com. </p> </div> <div data-rss-type="text"> <p> <a href="/2010/04/the-importance-of-a-letter-of-intent-when-purchasing-a-corporate-aircraft/"> The Importance of a Letter of Intent When Purchasing a Corporate Aircraft </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Sun, 11 Apr 2010 14:10:00 GMT https://www.businessaviationcounsel.com/2010/04/the-importance-of-a-letter-of-intent-when-purchasing-a-corporate-aircraft https://www.businessaviationcounsel.com/2010/03/firm-to-contribute-to-corporate-angel-network-for-each-transaction The Corporate Angel Network, a non-profit organization, matches cancer patients with business aircraft operators so that empty seats may be used to transport patients and their families to facilities for life-saving treatment.  If you haven’t seen their promotional video, you can do so by going to www.corpangelnetwork.org.  It is  our firm’s policy to provide every… The post Firm to Contribute to Corporate Angel Network for Each Transaction first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> The Corporate Angel Network, a non-profit organization, matches cancer patients with business aircraft operators so that empty seats may be used to transport patients and their families to facilities for life-saving treatment.  If you haven’t seen their promotional video, you can do so by going to www.corpangelnetwork.org.  It is  our firm’s policy to provide every business aircraft owner that we represent with information about CAN and we will be actively contacting existing clients to make them aware of this touching and humanitarian use of empty seats on their aircraft.  The firm also makes a contribution to CAN each time we assist a client with closing a corporate aircraft transaction.  This is our way of giving something back. </p> </div> <div data-rss-type="text"> <p> <a href="/2010/03/firm-to-contribute-to-corporate-angel-network-for-each-transaction/"> Firm to Contribute to Corporate Angel Network for Each Transaction </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Sun, 07 Mar 2010 07:12:00 GMT https://www.businessaviationcounsel.com/2010/03/firm-to-contribute-to-corporate-angel-network-for-each-transaction https://www.businessaviationcounsel.com/2010/03/stewart-h-lapayowker-p-a-a-sponsor-of-gildas-club-benefit-of-south-florida On March 12, 2010, the firm will be a sponsor of “The Next Generation of Flight IV” hosted by Gold Aviation Services and PNC Bank and Benefitting Gilda’s Club South Florida.  The evening will include a live auction, a silent auction, casino entertainment and a display of luxury automobiles and private aircraft.  Proceeds benefit Gilda’s… The post Lapayowker Jet Counsel, P.A.. a Sponsor of Gilda's Club Benefit Hosted by Gold Aviation first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> On March 12, 2010, the firm will be a sponsor of “The Next Generation of Flight IV” hosted by Gold Aviation Services and PNC Bank and Benefitting Gilda’s Club South Florida.  The evening will include a live auction, a silent auction, casino entertainment and a display of luxury automobiles and private aircraft.  Proceeds benefit Gilda’s Club of South Florida. </p> </div> <div data-rss-type="text"> <p> This is an entertaining and worthwhile event.  We are proud of our participation and look forward to seeing you there.  Click here for a copy of the invitation.  <a href="https://www.businessaviationcounsel.com/wp-content/uploads/2010/03/Invitation.pdf"> Invitation to Gilda’s Club event </a> </p> </div> <div data-rss-type="text"> <p> <a href="/2010/03/stewart-h-lapayowker-p-a-a-sponsor-of-gildas-club-benefit-of-south-florida/"> Lapayowker Jet Counsel, P.A.. a Sponsor of Gilda's Club Benefit Hosted by Gold Aviation </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Sun, 07 Mar 2010 07:02:00 GMT https://www.businessaviationcounsel.com/2010/03/stewart-h-lapayowker-p-a-a-sponsor-of-gildas-club-benefit-of-south-florida https://www.businessaviationcounsel.com/2010/03/why-are-we-asked-if-were-pilots In introductory calls with clients we are routinely asked if we are pilots.  Why?  Does an aviation transaction lawyer need to know how to fly an aircraft in order to be skilled at the legal aspects of buying, selling, financing, registering and advising on the regulatory aspects of an aircraft?  I think it’s because people… The post Why Are We Asked if We're Pilots? first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> In introductory calls with clients we are routinely asked if we are pilots.  Why?  Does an aviation transaction lawyer need to know how to fly an aircraft in order to be skilled at the legal aspects of buying, selling, financing, registering and advising on the regulatory aspects of an aircraft?  I think it’s because people naturally associate an aircraft with a pilot.  The legal skills required of a lawyer that handles aircraft transactions are significantly different from, and in many ways completely unrelated to, the mechanical operation of an aircraft.  After all, the acquisition of an aircraft involves the knowledge of aircraft registration law, FAA regulations, permissible operating structures, state tax issues, federal tax issues,  among others.  There is one thing that a safe pilot does have in common with a good aviation transaction lawyer: experience -experience with navigating the routine and complex transactional issues, none of which are the same in every deal, but all of which demand in-depth knowledge and experience.  So perhaps the questions shouldn’t be “are you a pilot” but rather “do you have the knowledge and experience to pilot us through this transaction safely and effectively so that our goals are achieved.” </p> </div> <div data-rss-type="text"> <p> The next question is usually “do you have a plane.”  I’m workin’ on it (but don’t tell my wife). </p> </div> <div data-rss-type="text"> <p> SHL. </p> </div> <div data-rss-type="text"> <p> <a href="/2010/03/why-are-we-asked-if-were-pilots/"> Why Are We Asked if We're Pilots? </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Sun, 07 Mar 2010 06:16:00 GMT https://www.businessaviationcounsel.com/2010/03/why-are-we-asked-if-were-pilots https://www.businessaviationcounsel.com/2010/02/recent-newsletter Stewart spoke with Rob Zeitinger of Irell & Minella on the topic of aircraft management agreements.  Also, the firm made made available to participants a handout which we hope you find informative (and entertaining). Just click the link below to see a copy. Reagrds. SHL. SHL Newsletter The post If You Missed Us at the Aircraft Registry Forum in Ft. Lauderdale… first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> Stewart spoke with Rob Zeitinger of Irell &amp; Minella on the topic of aircraft management agreements.  Also, the firm made made available to participants a handout which we hope you find informative (and entertaining). Just click the link below to see a copy. </p> </div> <div data-rss-type="text"> <p> Reagrds. SHL. </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com/wp-content/uploads/2010/02/SHL-Newsletter1.pdf"> SHL Newsletter </a> </p> </div> <div data-rss-type="text"> <p> <a href="/2010/02/recent-newsletter/"> If You Missed Us at the Aircraft Registry Forum in Ft. Lauderdale… </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Thu, 25 Feb 2010 15:30:00 GMT https://www.businessaviationcounsel.com/2010/02/recent-newsletter https://www.businessaviationcounsel.com/2010/01/a-plane-load-of-success-for-humanitarian-reasons A quest is a search for something and in this case, the quest eventually turned out to be a profitable aviation business with humanitarian interests at heart. During the recession there are a lot of industries suffering significant hits. A turboprop manufacturer in Idaho was just getting its business underway during the same time frame… The post A Plane Load of Success for Humanitarian Reasons first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> A quest is a search for something and in this case, the quest eventually turned out to be a profitable aviation business with humanitarian interests at heart. </p> </div> <div data-rss-type="text"> <p> During the recession there are a lot of industries suffering significant hits. A turboprop manufacturer in Idaho was just getting its business underway during the same time frame when the recession hit the hardest, giving short shrift to his dreams and plans – temporarily. The business owner, Paul Schaller, snatched victory from the jaws of defeat and niche marketed his turboprop planes for missionary and humanitarian outfits requiring access to dangerous and remote regions. His company name: Quest. <br/> “While this might sound nice and like a worthwhile cause, this also happens to be a burgeoning $300 million market that hasn’t really gone very far since the early 1960s. This particular plane, a ten-seater $1.45 million Kodiak, is certified by the Federal Aviation Administration (FAA). Since that happened, Schaller’s deliveries have blossomed from virtually zilch to over 27, with customers standing in line,” recounted Stewart H. Lapayowker, Esq., an <a href="https://www.businessaviationcounsel.com"> aviation transaction lawyer </a> who focuses his practice on aircraft transactions in Fort Lauderdale, Florida. </p> </div> <div data-rss-type="text"> <p> Who would argue that using a plane for rescue work is a luxury? Not a lot of people and its usefulness has proved itself over and over. It’s not just the fact that the plane and the business of saving people are in demand, it’s also that this industry employs others. “In other words, it provides jobs in many areas of the business aviation industry. Odd that people seem to think this kind of work and using a plane to get to places is acceptable, when other companies who do the same thing – but do work related tasks – is out of line and unjustified,” Lapayowker commented. </p> </div> <div data-rss-type="text"> <p> Consider the fact that this small company is now making three Kodiaks a month and has back orders for 120 planes on the books. Quest expects to makes close to $60 million next year. “Part of that revenue will go back into the local community; part will go to the government. In other words, business aviation turboprop planes are more than pulling their own weight when it comes to contributing to the economy,” added Lapayowker. </p> </div> <div data-rss-type="text"> <p> “This is a heartwarming story with a moral attached to it and that moral happens to be that despite an aircraft industry that is having trouble during the recession, it is possible to make a comeback. Business aviation is the lifeblood of the country, no matter what form it takes – turboprop aircraft or business jets. They all have value that contributes to the economy of this country,” said Lapayowker. </p> </div> <div data-rss-type="text"> <p> Lapayowker Jet Counsel, P.A.. is an <a href="https://www.businessaviationcounsel.com"> aviation transaction lawyer </a> focusing on airplane and jet transactions. To learn more, visit <a href="https://www.businessaviationcounsel.com"> Businessaviationcounsel.com </a> . </p> </div> <div data-rss-type="text"> <p> <a href="/2010/01/a-plane-load-of-success-for-humanitarian-reasons/"> A Plane Load of Success for Humanitarian Reasons </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Mon, 25 Jan 2010 23:29:00 GMT https://www.businessaviationcounsel.com/2010/01/a-plane-load-of-success-for-humanitarian-reasons https://www.businessaviationcounsel.com/2010/01/using-planes-actually-means-a-well-run-business Think booming business that provides jobs to Americans, even during a recession. Think smart business means smart business aviation use. In a world that loves to pounce on excesses, it isn’t hard to find hundreds of people tsk-tsking over the use of corporate jets for private purposes. It happens. However, just because there are some… The post Using Planes Actually Means a Well Run Business first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> Think booming business that provides jobs to Americans, even during a recession. Think smart business means smart business aviation use. </p> </div> <div data-rss-type="text"> <p> In a world that loves to pounce on excesses, it isn’t hard to find hundreds of people tsk-tsking over the use of corporate jets for private purposes. It happens. However, just because there are some companies or executives that do abuse an asset, does not mean that all companies and executives do it. In fact, the exact opposite is usually the case. It’s just that it makes good grist for the publicity mills to be able to point out instances where corporate big shots pulled a big blunder and used company jets to do their “thing,” while taxpayers footed the bill. </p> </div> <div data-rss-type="text"> <p> “Fortunately, as bad as a story like that might seem, there is a nugget of reality and truth in it, and that is using business aviation to run a company is not only smart, it means the organization is well managed. For those having trouble with that concept, consider the thousands of miles some companies need to put on to make and maintain a profit. While the profit does go to the company, it also goes to the coffers of the nation, keeping trade open across the nation. In other words, business aviation means the country’s economy is thriving thanks to the mobility and flexibility of using planes to do business,” explained Stewart H. Lapayowker, Esq., an <a href="https://www.businessaviationcounsel.com"> aviation transaction lawyer </a> who handles airplane jet transactions in Fort Lauderdale, Florida. </p> </div> <div data-rss-type="text"> <p> Business flights are a reality in the world today, and if they weren’t, America would not be what it is capable of becoming now and in the future, thanks to the capacity of planes to make vital connections viable. “Whether it’s getting to a distant office on the other side of the country to handle a production problem, sending sales teams for training on a new avionics model, or getting a critically ill person to the nearest high tech medical facility, business aviation is crucial to America’s well-being,” added Lapayowker. </p> </div> <div data-rss-type="text"> <p> If a business executive had to make four stops in one day, each involving a meeting and resolution of shipping glitches that were holding up the uninterrupted flow of goods to the four destinations, would that executive take a commercial airline to those locations? If one location was New Mexico, one in Washington, one in Maine and one in Montana, and they were all within a two day time frame, that executive could not efficiently take commercial airline flights to all of those places. Logistically, it would be a nightmare. </p> </div> <div data-rss-type="text"> <p> Using a corporate jet would deal with the geographic issues and make those meetings doable. In the process there would be a business resolution that would allow the company to continue to flourish. One trip, working on the aircraft, holding meetings and doing deals, makes financial sense. “Travel time involved is kept to a minimum using business aviation. Put another way, the return on investment that a business airplane provides for a company goes directly to its bottom line, which can only be a good thing in business,” said Lapayowker. </p> </div> <div data-rss-type="text"> <p> Lapayowker Jet Counsel, P.A.. is an <a href="https://www.businessaviationcounsel.com"> aviation transaction lawyer </a> focusing on airplane and jet transactions. To learn more, visit <a href="https://www.businessaviationcounsel.com"> Businessaviationcounsel.com </a> . </p> </div> <div data-rss-type="text"> <p> <a href="/2010/01/using-planes-actually-means-a-well-run-business/"> Using Planes Actually Means a Well Run Business </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Wed, 20 Jan 2010 23:28:00 GMT https://www.businessaviationcounsel.com/2010/01/using-planes-actually-means-a-well-run-business https://www.businessaviationcounsel.com/2010/01/to-drive-or-fly-to-your-destination-that-is-the-question Hoofing it to that far away destination may be an alternative, but not a viable one. Flying, on the other hand, now that makes far more sense. Typically, most Americans figure they get things done faster because they have a car to get from point A to point B. Many of them also forget that… The post To Drive or Fly to Your Destination, That Is the Question first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> Hoofing it to that far away destination may be an alternative, but not a viable one. Flying, on the other hand, now that makes far more sense. </p> </div> <div data-rss-type="text"> <p> Typically, most Americans figure they get things done faster because they have a car to get from point A to point B. Many of them also forget that they spend about half the day on the road getting to all the places they need to go. Don’t forget that it isn’t just going from home to work either; it’s taking the dry cleaning in, drop the kids at school, go for a hair appointment, hit the post office, the grocery store, pick up your cat at the vet and so on. That’s a small snapshot of a day in the life of an average American needing to travel a whole lot in one day to get things done. </p> </div> <div data-rss-type="text"> <p> The average American is much like the average (to not so average) business that has to travel a whole lot in one day to get things done. The major exception here, of course, is the fact that the point A to point B journey typically involves thousands of miles and may mean having to get to different countries as well. Obviously driving is out of the question. Enter the necessity of flying to do business. </p> </div> <div data-rss-type="text"> <p> Here is the problem though. Most Americans think that corporate jets are just for joyriding. Really, who could blame them for that impression given some of the stories they’ve read in the news lately, and now the rest of the business aviation industry is suffering because of it. </p> </div> <div data-rss-type="text"> <p> Not everyone or every business that uses jets to get around is doing it because they have the money to do so. This isn’t about wealth. This is about doing business in a country so vast that it is impossible to accomplish much unless one has the ability to respond quickly to various business developments. <br/> It’s almost a no-brainer to look at the thousands of miles some companies need to navigate to understand why they need business aviation at their disposal. They fly because they need to in order to stay in operation. If they didn’t fly, they wouldn’t have a company and would not be contributing to the economy. </p> </div> <div data-rss-type="text"> <p> Think that company executives should be taking commercial airline flights? You’re right, they should when it makes sense. However, there is no sense in trying to book a commercial flight to a place where no commercial airlines fly and there is no airport. In other words, if you can’t get to where you are going commercially, then you should utilize corporate aviation. </p> </div> <div data-rss-type="text"> <p> That makes sense to those in business. It doesn’t make sense to the general public, because they have not been there and done that. So really, it’s a matter of education about the business aviation industry and why it is vital to America. Company operated aircraft are about flexibility and productivity, about making money that goes into the nation’s coffers, and about providing jobs to Americans. What more could you ask for? </p> </div> <div data-rss-type="text"> <p> Lapayowker Jet Counsel, P.A.. is an <a href="https://www.businessaviationcounsel.com"> aviation attorney </a> and <a href="https://www.businessaviationcounsel.com"> aviation transaction lawyer </a> , focusing on airplane and jet transactions. To learn more, visit <a href="https://www.businessaviationcounsel.com"> Businessaviationcounsel.com </a> . </p> </div> <div data-rss-type="text"> <p> <a href="/2010/01/to-drive-or-fly-to-your-destination-that-is-the-question/"> To Drive or Fly to Your Destination, That Is the Question </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Thu, 14 Jan 2010 23:27:00 GMT https://www.businessaviationcounsel.com/2010/01/to-drive-or-fly-to-your-destination-that-is-the-question https://www.businessaviationcounsel.com/2010/01/the-real-truth-about-business-aviation Business aviation is not about flying in the lap of luxury at the drop of a dime. It’s about keeping the nation moving in more ways than one. Unfortunately a great many people in America think that corporate jets are the toys for the boys behind the desks of big companies. While it is true… The post The Real Truth About Business Aviation first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> Business aviation is not about flying in the lap of luxury at the drop of a dime. It’s about keeping the nation moving in more ways than one. </p> </div> <div data-rss-type="text"> <p> Unfortunately a great many people in America think that corporate jets are the toys for the boys behind the desks of big companies. While it is true that corporate America does use planes to do business, they do not, for the most part, hip-hop from place to place just “because they can.” Business aviation is one of the cornerstones of what makes this great country prosper. </p> </div> <div data-rss-type="text"> <p> Many people aren’t aware of the fact that business aviation contributes well over $150 billion to our economy each year. This industry also gives jobs to over 1.2 million people; jobs that are stable and pay good wages. This can’t always be said about the rest of the economy. In addition, a large majority of the general aviation aircraft in service around the world are made, run, serviced, and taken care of in the US. That’s not exactly small potatoes when it comes to being a reliable, trustworthy, innovative, and critical industry that is part of the lifeblood of American commerce. </p> </div> <div data-rss-type="text"> <p> While there are some aviation companies that do manufacture their planes abroad, they bring them to the US to complete. The US has a sterling reputation for aircraft components, even aircraft completion centers, paint, engines, automation systems, electronics, and avionics. Think about the dollars this industry pumps into the economy. </p> </div> <div data-rss-type="text"> <p> Business aircraft manufacturing is a major source of good jobs in the US, the kind of employment that can continue well into the future. Interestingly enough, it is also one of the very few industries that still actively contributes to maintaining a positive trade balance. At this time in our economic development, we desperately need industries that boost our economy, providing some light at the end of the tunnel during this major recession. </p> </div> <div data-rss-type="text"> <p> Another fact that not too many people realize is that business aviation lets companies quickly and safely get tools and materials from one place to another; the kinds of materials that can’t be taken on board a commercial airline. Operating a business aircraft lets those doing business get from one destination to another, solving problems as they crop up during the course of doing trade. This increased mobility helps companies solve their problems rapidly, effectively and efficiently. </p> </div> <div data-rss-type="text"> <p> Don’t forget that any business aviation aircraft needs support crews, maintenance personnel, pilots, technicians, dispatchers, schedulers, and other critical employees to keep their planes in the air doing business. Overall, the big picture for business aviation is one of contributing to a growing economy, striving to stay current in the 21st century, contributing an enormously valuable service to the nation, and allowing commerce to flourish under some tough conditions. </p> </div> <div data-rss-type="text"> <p> Do corporate jets mean the big boys are playing at the taxpayer’s expense? The nation’s trade balance sheet shows otherwise. </p> </div> <div data-rss-type="text"> <p> Lapayowker Jet Counsel, P.A.. is an <a href="https://www.businessaviationcounsel.com"> aviation attorney </a> and <a href="https://www.businessaviationcounsel.com"> aviation transaction lawyer </a> , focusing on airplane and jet transactions. To learn more, visit <a href="ction lawyer&lt;/a>, focusing on airplane an"> Businessaviationcounsel.com </a> . </p> </div> <div data-rss-type="text"> <p> <a href="/2010/01/the-real-truth-about-business-aviation/"> The Real Truth About Business Aviation </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Mon, 04 Jan 2010 23:25:00 GMT https://www.businessaviationcounsel.com/2010/01/the-real-truth-about-business-aviation https://www.businessaviationcounsel.com/2009/12/we-dont-believe-in-the-no-win-scenario If you’ve seen the new Star Trek movie or are a fan of earlier movies, you may recall that every officer is tested in what is called the “Kobayashi Maru” scenario.  This involves the trainee being placed in an untenable position – he or she needs to choose to try to rescue another ship while… The post We Don't Believe in the No-Win Scenario first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> If you’ve seen the new Star Trek movie or are a fan of earlier movies, you may recall that every officer is tested in what is called the “Kobayashi Maru” scenario.  This involves the trainee being placed in an untenable position – he or she needs to choose to try to rescue another ship while facing certain death or save his own ship and let  hundreds of passengers on the other ship perish.  Kirk finds a solution (he cheats the test) but the point is that he doesn’t believe in the “no-win” scenario. </p> </div> <div data-rss-type="text"> <p> While there may not be a perfect solution for every issue encountered in an aircraft transaction, something can typically be done to accommodate fundamental issues that arise, and having a positive mental attitude while dealing with a difficult seller or buyer (or their representatives) is an important part of getting the deal done.  Transactions are fluid, can change on a daily basis, and involve give and take.   There are times when rigidity is important, but at other times rigidity can result in a busted deal with all parties circling their wagons.  Some empathy and a little creativity can make all the difference. </p> </div> <div data-rss-type="text"> <p> We wish you all the best for 2010. </p> </div> <div data-rss-type="text"> <p> SHL. </p> </div> <div data-rss-type="text"> <p> <a href="/2009/12/we-dont-believe-in-the-no-win-scenario/"> We Don't Believe in the No-Win Scenario </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Thu, 31 Dec 2009 10:02:00 GMT https://www.businessaviationcounsel.com/2009/12/we-dont-believe-in-the-no-win-scenario https://www.businessaviationcounsel.com/2009/12/firm-now-has-skype In an effort to reduce costs for our international and domestic clients, we now have available a Skype username STEWLAP.  Please feel free to call us on Skype when necessary. The post Firm Now Has SKYPE! Username Stewlap first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> In an effort to reduce costs for our international and domestic clients, we now have available a Skype username STEWLAP.  Please feel free to call us on Skype when necessary. </p> </div> <div data-rss-type="text"> <p> <a href="/2009/12/firm-now-has-skype/"> Firm Now Has SKYPE! Username Stewlap </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Tue, 29 Dec 2009 00:33:00 GMT https://www.businessaviationcounsel.com/2009/12/firm-now-has-skype https://www.businessaviationcounsel.com/2009/11/end-of-year-planning-and-the-bonus-eligible-aircraft We are expecting a sizable year-end push to complete aircraft transactions. It is important for prospective buyers and sellers to plan ahead for these desired purchases. In addition to the time required for purchase agreement negotiations, the parties must consider other factors that may affect the timeline of the purchase. Inspection facilities – only have… The post End of Year Planning and the "Bonus Eligible Aircraft" first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> We are expecting a sizable year-end push to complete aircraft transactions. It is important for prospective buyers and sellers to plan ahead for these desired purchases. In addition to the time required for purchase agreement negotiations, the parties must consider other factors that may affect the timeline of the purchase. </p> </div> <div data-rss-type="text"> <p> <span> Inspection facilities </span> – only have a limited number of slots available for inspection and the parties (typically the purchaser) will be forced to pay for overtime to ensure the timely completion of the inspection. </p> </div> <div data-rss-type="text"> <p> <span> Loan Negotiations </span> – Depending upon the complexity of the loan, negotiations may take several days, accompanied with multiple drafts, to finalize.  Backup documentation required by the lender may also slow the process. </p> </div> <div data-rss-type="text"> <p> <span> Team availability </span> – Try to give your transaction team as much notice as possible of when a transaction will occur. Even a brief “I have something cooking for a December close” message will alert your team so that personnel and resources can be allocated to timely address your needs. </p> </div> <div data-rss-type="text"> <p> <em> A Note on Bonus Depreciation </em> </p> </div> <div data-rss-type="text"> <p> We also are expecting an increased interest in bonus depreciation. Aircraft purchasers should be wary of advertisements that claim certain aircraft are eligible for bonus depreciation. A complex analysis is required to determine whether or not an aircraft is “new” especially if the aircraft has already been delivered to the first purchaser, who claims to be a “dealer” and also claims to have not placed the aircraft in service. A serious aircraft purchaser seeking confirmation that an aircraft is eligible for bonus depreciation should engage an experienced tax professional to review the facts and circumstances of the aircraft purchase. </p> </div> <div data-rss-type="text"> <p> <a href="/2009/11/end-of-year-planning-and-the-bonus-eligible-aircraft/"> End of Year Planning and the "Bonus Eligible Aircraft" </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Mon, 23 Nov 2009 16:39:00 GMT https://www.businessaviationcounsel.com/2009/11/end-of-year-planning-and-the-bonus-eligible-aircraft https://www.businessaviationcounsel.com/2009/11/17th-annual-corporate-aircraft-registry-february-22-23-2010 Mr. Lapayowker will be speaking at the 17th Annual Corporate Aircraft Registry conference being held at the Ritz Carlton hotel in Ft. Lauderdale  on  February 22-23, 2010.  He will be speaking with Rob Zeitinger, of Irell & Manella LLP on the topic of “Negotiating the Charter and Management Agreement:  Avoiding the Mines in the Minefields.”… The post Speaking at 17th Annual Corporate Aircraft Registry February 22-23, 2010 first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> Mr. Lapayowker will be speaking at the 17th Annual Corporate Aircraft Registry conference being held at the Ritz Carlton hotel in Ft. Lauderdale  on  February 22-23, 2010.  He will be speaking with Rob Zeitinger, of Irell &amp; Manella LLP on the topic of “Negotiating the Charter and Management Agreement:  Avoiding the Mines in the Minefields.” To see the  conference brochure, click here  <!--StartFragment--> <span> <span> <span> <span> <a href="http://www.insightinfo.com/aircraftregistryforum"> http://www.insightinfo.com/aircraftregistryforum </a> </span> </span> </span> </span> <!--EndFragment--> </p> </div> <div data-rss-type="text"> <p> <a href="/2009/11/17th-annual-corporate-aircraft-registry-february-22-23-2010/"> Speaking at 17th Annual Corporate Aircraft Registry February 22-23, 2010 </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Thu, 12 Nov 2009 14:08:00 GMT https://www.businessaviationcounsel.com/2009/11/17th-annual-corporate-aircraft-registry-february-22-23-2010 https://www.businessaviationcounsel.com/2009/11/stewart-lapayowker-included-in-2010-edition-of-south-floridas-best-lawyers Stewart Lapayowker was included in South Florida’s Best Lawyers 2010 Edition published by Best Lawyers in association with the Daily Business Review. The post Stewart Lapayowker included in 2010 Edition of South Florida's Best Lawyers first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> Stewart Lapayowker was included in South Florida’s Best Lawyers 2010 Edition published by Best Lawyers in association with the Daily Business Review. </p> </div> <div data-rss-type="text"> <p> <a href="/2009/11/stewart-lapayowker-included-in-2010-edition-of-south-floridas-best-lawyers/"> Stewart Lapayowker included in 2010 Edition of South Florida's Best Lawyers </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Tue, 03 Nov 2009 00:01:00 GMT https://www.businessaviationcounsel.com/2009/11/stewart-lapayowker-included-in-2010-edition-of-south-floridas-best-lawyers https://www.businessaviationcounsel.com/2009/11/bringing-order-to-chaos I was watching Star Trek First Contact with the kids the other night (actually, they were watching it with me).  There’s one scene in which Data asks the Borg leader whether she is the “brain” of the Borg. She responds “No, I bring order to chaos.”  What a great phrase to describe the work of… The post "Bringing Order to Chaos" first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> I was watching <em> Star Trek First Contact </em> with the kids the other night (actually, they were watching it with me).  There’s one scene in which Data asks the Borg leader whether she is the “brain” of the Borg. She responds “No, I bring order to chaos.”  What a great phrase to describe the work of an aviation transaction lawyer!  We help clients navigate the issues involved in an aircraft purchase. Some think that the process is as simple as buying or leasing a car.  Others believe that they know it all.  And yet others are overwhelmed by  all of the issues that need to be addressed to have a successful transaction: purchase agreement, deposits, finance, pre-purchase inspection scope, sales tax planning, federal tax planning, FAA compliance, DOT compliance, FAA registration issues, insurance, risk management, management, Part 135, among others. </p> </div> <div data-rss-type="text"> <p> Many times a client tries to learn about the issues by anecdotal research, information gathered from friends on the golf course, from web sites that only touch the tip of the iceberg.  Learning the ins and outs of all the issues involved in closing an aircraft transaction takes years. The absolute worse time to learn is in the middle of a transaction, although we can guide a client through the maze in an orderly and efficient manner. </p> </div> <div data-rss-type="text"> <p> In an aircraft transaction, chaos is sometimes intentionally created by people on the other side of the transaction pushing an agenda, chaos is created often times by a client who would rather run the transaction themselves requiring us to “claw back” after a deal has begun, and chaos is often created by the myriad of issues required to be addressed to bring a transaction to a smooth and successful consummation. </p> </div> <div data-rss-type="text"> <p> So, perhaps the best phrase to describe our job is that we “bring order to chaos.”  I hope Paramount doesn’t mind. </p> </div> <div data-rss-type="text"> <p> Happy Halloween! </p> </div> <div data-rss-type="text"> <p> <a href="/2009/11/bringing-order-to-chaos/"> "Bringing Order to Chaos" </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Sun, 01 Nov 2009 17:04:00 GMT https://www.businessaviationcounsel.com/2009/11/bringing-order-to-chaos https://www.businessaviationcounsel.com/2009/10/an-invitation-to-corporate-pilotsflight-crew-to-post-resumes-on-our-site We know times are tough for corporate pilots, flight attendants and others working in the business aviation industry.  In an effort to assist, we will be creating a new page on our web site devoted to allowing business aviation flight crew and others in the industry to post some basic information about themselves and a… The post An Invitation to Corporate Pilots/Flight Crew to Post Resumes on Our Site first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> We know times are tough for corporate pilots, flight attendants and others working in the business aviation industry.  In an effort to assist, we will be creating a new page on our web site devoted to allowing business aviation flight crew and others in the industry to post some basic information about themselves and a brief resume of their experience.  If interested, please use the “contact us” link on the home page and send us your information (background, position desired, geographic preference, e-mail address, etc.).  We will organize it for inclusion on the new page.  We are hopeful that this will be useful to you. </p> </div> <div data-rss-type="text"> <p> <a href="/2009/10/an-invitation-to-corporate-pilotsflight-crew-to-post-resumes-on-our-site/"> An Invitation to Corporate Pilots/Flight Crew to Post Resumes on Our Site </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Fri, 30 Oct 2009 20:47:00 GMT https://www.businessaviationcounsel.com/2009/10/an-invitation-to-corporate-pilotsflight-crew-to-post-resumes-on-our-site https://www.businessaviationcounsel.com/2009/10/attendance-at-nbaa-annual-convention-a-success-for-the-firm Last week, lawyers and others from the firm attended the NBAA Annual Convention in Orlando.  Mr. Lapayowker spoke at the Annual Tax, Regulatory and Risk Management Conference held at the Hilton/Convention Center where he, together with Mike Nichols of NBAA and William Clark, a Canadian aviation lawyer, lectured in front of an audience of approximately… The post Attendance at NBAA Annual Convention a Success for the Firm first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> Last week, lawyers and others from the firm attended the NBAA Annual Convention in Orlando.  Mr. Lapayowker spoke at the Annual Tax, Regulatory and Risk Management Conference held at the Hilton/Convention Center where he, together with Mike Nichols of NBAA and William Clark, a Canadian aviation lawyer, lectured in front of an audience of approximately 150 flight department personnel, lawyers, accountants and other aviation professionals on issues in international business aircraft transactions.  The topics included ICAO, Cabotage, VAT, European Union customs and cabotage issues, the use and meaning of Export Certificates of Airworthiness, and managing the process of importing and exporting aircraft.  The firm also sponsored the National Aircraft Finance Association’s cocktail party. </p> </div> <div data-rss-type="text"> <p> Mr. Lapayowker was appointed Recording Secretary of the NBAA’s Tax Committee and Chair of its Planning Group, and stepped down from his position as Chair of the Committee’s Aircraft Transactions Working Group on which he served for 2 years. </p> </div> <div data-rss-type="text"> <p> We always look forward to the Convention and the Conference.  It gives us the opportunity to meet our friends and colleagues in the industry and those with whom we have worked on transactions over the last year.  Even while spending time at the Convention, through remote technology, we were able to negotiate and document the purchase of a Gulfstream IV-SP for one of our clients.  Commerce moves forward even when the industry in Orlando! </p> </div> <div data-rss-type="text"> <p> The annual silent auction benefited the Corporate Angel Network, a non-profit organization whose objective is to match cancer patients with business aircraft operators so that empty seats may be used to transport patients and their families to facilities for life-saving treatment.  If you haven’t seen their promotional video, you can do so by going to www.corpangelnetwork.org.  It is now our firm’s policy to provide every business aircraft owner that we represent with information about CAN and we will be actively contacting existing clients to make them aware of this touching and humanitarian use of empty seats on their aircraft. </p> </div> <div data-rss-type="text"> <p> If we didn’t have the chance to say hello, please feel free to contact us! We welcome your call. </p> </div> <div data-rss-type="text"> <p> Stewart H. Lapayowker </p> </div> <div data-rss-type="text"> <p> <a href="/2009/10/attendance-at-nbaa-annual-convention-a-success-for-the-firm/"> Attendance at NBAA Annual Convention a Success for the Firm </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Sun, 25 Oct 2009 22:03:00 GMT https://www.businessaviationcounsel.com/2009/10/attendance-at-nbaa-annual-convention-a-success-for-the-firm https://www.businessaviationcounsel.com/2009/10/see-you-at-nbaa The National Business Aviation Association’s Annual Meeting and Convention is next week.  Stewart will be joining Mike Nichols and Bill Clark to speak at the Tax and Regulatory conference on Sunday on the topic of international tax and regulatory issues.    If you would like to get in touch with us at the convention, please use… The post See You at NBAA! first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> The National Business Aviation Association’s Annual Meeting and Convention is next week.  Stewart will be joining Mike Nichols and Bill Clark to speak at the Tax and Regulatory conference on Sunday on the topic of international tax and regulatory issues.    If you would like to get in touch with us at the convention, please use the “contact us” link and send us a message. </p> </div> <div data-rss-type="text"> <p> We look forward to seeing you there. </p> </div> <div data-rss-type="text"> <p> <a href="/2009/10/see-you-at-nbaa/"> See You at NBAA! </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Fri, 16 Oct 2009 16:38:00 GMT https://www.businessaviationcounsel.com/2009/10/see-you-at-nbaa https://www.businessaviationcounsel.com/2009/10/seller-behavior-in-this-market Over the last couple of months we’ve seen some interesting seller behavior and it raises an interesting question: why are some sellers making it more difficult to negotiate the purchase of their aircraft in this buyer’s market?  One example was a seller who insisted that the buyer arrange for the shipping to the inspection facility… The post Seller Behavior in This Market first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> Over the last couple of months we’ve seen some interesting seller behavior and it raises an interesting question: why are some sellers making it more difficult to negotiate the purchase of their aircraft in this buyer’s market?  One example was a seller who insisted that the <span> buyer </span> arrange for the shipping to the inspection facility of aircraft parts that the seller had removed from the aircraft during some refurbishment work. Huh?  Another seller of a large cabin jet received a draft of a purchase agreement the day after the offer to purchase was signed and didn’t respond to it until after the date that the offer to purchase terminated. What?  And yet another resisted bringing the aircraft to a bonafide purchaser for a viewing of the aircraft. Are you kidding? </p> </div> <div data-rss-type="text"> <p> Here we have a market in which inventory of aircraft for sale far exceeds demand, and yet some sellers are making it difficult – and not easy – to purchase their aircraft.  What is going on here?  One theory is that sellers are behaving like home sellers these days: “If you’re going to get my jet for that price, I’m going to make you miserable while you do it.”  The purchase of an aircraft is sometimes an emotional purchase, but interjecting emotions into a sale is a recipe for never selling the aircraft.   If  you’re getting the price that you decided that you wanted after a review of the market, you won’t gain anything by making the process more difficult than it needs to be.  In fact, you’re more likely to have a buyer that is more willing to walk away and buy one of the other two dozen similar aircraft being offered for sale. </p> </div> <div data-rss-type="text"> <p> <a href="/2009/10/seller-behavior-in-this-market/"> Seller Behavior in This Market </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Mon, 12 Oct 2009 01:51:00 GMT https://www.businessaviationcounsel.com/2009/10/seller-behavior-in-this-market https://www.businessaviationcounsel.com/2009/10/attorney-david-g-shannon-jd-llm-joins-the-firm We are pleased to announce that attorney David G. Shannon, JD, LLM, has joined the firm.  David obtained his law degree from University of Miami and his Masters in Taxation from Georgetown University.  David is an attorney experienced in aviation transactions, regulatory and tax related issues from a Washington, DC based law firm, and will… The post Attorney David G. Shannon, JD, LLM Joins the Firm first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> We are pleased to announce that attorney David G. Shannon, JD, LLM, has joined the firm.  David obtained his law degree from University of Miami and his Masters in Taxation from Georgetown University.  David is an attorney experienced in aviation transactions, regulatory and tax related issues from a Washington, DC based law firm, and will be providing support to clients and their tax professionals.  Please join us in welcoming David to the firm. </p> </div> <div data-rss-type="text"> <p> Stewart H. Lapayowker </p> </div> <div data-rss-type="text"> <p> <a href="/2009/10/attorney-david-g-shannon-jd-llm-joins-the-firm/"> Attorney David G. Shannon, JD, LLM Joins the Firm </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Fri, 09 Oct 2009 12:46:00 GMT https://www.businessaviationcounsel.com/2009/10/attorney-david-g-shannon-jd-llm-joins-the-firm https://www.businessaviationcounsel.com/2009/10/does-business-aviation-have-a-use-for-social-networking Twitter, Facebook, LinkedIn, MySpace, blogs – what does that have to do with business aviation? For one, they can be great tools to share information quickly and effectively with other interested parties. A lot of people within our industry are using these tools and if you’re not, you might be missing out on some important… The post Does Business Aviation Have a Use for Social Networking? first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> Twitter, Facebook, LinkedIn, MySpace, blogs – what does that have to do with business aviation? For one, they can be great tools to share information quickly and effectively with other interested parties. A lot of people within our industry are using these tools and if you’re not, you might be missing out on some important information. Sure, there can be a lot of noise to filter through, but gems of information are available if you know what the tools are and how to utilize them. For a session at its Convention in Orlando later this month, NBAA has assembled a team of social media users/proponents from within the business aviation industry for an interactive presentation on these social networking tools can be used effectively. You won’t this session on the NBAA2009 calendar – it’s being promoted only through social media. Learn more at: <span> <a href="http://www.nbaa.org/events/amc/2009/social-media/"> http://www.nbaa.org/events/amc/2009/social-media/ </a> </span> . </p> </div> <div data-rss-type="text"> <p> <a href="/2009/10/does-business-aviation-have-a-use-for-social-networking/"> Does Business Aviation Have a Use for Social Networking? </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Fri, 09 Oct 2009 12:38:00 GMT https://www.businessaviationcounsel.com/2009/10/does-business-aviation-have-a-use-for-social-networking https://www.businessaviationcounsel.com/2009/07/isbao-is-coming-are-you-ready December 6, 2008 – ISBAO is coming. Are you ready? In November 2010, if you’ll be flying to the European Union, you’ll need ISBAO certification. ISBAO stands for International Standard for Business Aviation Operations. There are currently only about 90 certified operators. If you haven’t started the process for certification, you’re behind the power curve.… The post ISBAO is Coming. Are You Ready? first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> December 6, 2008 – <span> ISBAO is coming. Are you ready? </span> In November 2010, if you’ll be flying to the European Union, you’ll need ISBAO certification. ISBAO stands for International Standard for Business Aviation Operations. There are currently only about 90 certified operators. If you haven’t started the process for certification, you’re behind the power curve. Shortly, we’ll be adding a web page to our site devoted to ISBAO information and useful resources which will contain links to help you get started. Rumor has it that aviation insurance underwriters are looking carefully at the ISBAO standards as an underwriting factor whether or not the aircraft is anticipated to travel to the EU. </p> </div> <div data-rss-type="text"> <p> <a href="/2009/07/isbao-is-coming-are-you-ready/"> ISBAO is Coming. Are You Ready? </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Thu, 23 Jul 2009 16:06:00 GMT https://www.businessaviationcounsel.com/2009/07/isbao-is-coming-are-you-ready https://www.businessaviationcounsel.com/2009/05/florida-legislature-fails-to-pass-two-business-aviation-bills The Florida legislative session concluded and, once again, legislators failed to pass at least 2 statutory revisions that would have increased business brought into Florida by business aviation. The first proposal was a proposal to cap sales tax on aircraft purchased in Florida to $25,000, paving the way for more large aircraft to base in… The post Florida Legislature fails to pass two business aviation bills first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> The Florida legislative session concluded and, once again, legislators failed to pass at least 2 statutory revisions that would have increased business brought into Florida by business aviation. The first proposal was a proposal to cap sales tax on aircraft purchased in Florida to $25,000, paving the way for more large aircraft to base in Florida, resulting in more work for repair facilities, fixed base operators, and others. The second, and perhaps most significant, was the proposal to permit non-resident aircraft to stay in Florida for up to 21 days in a 6 month period without being subject to Florida’s use tax. At the moment, non-resident aircraft owners think twice before bringing their aircraft to Florida for extended periods of time (and especially immediately after their purchase of their aircraft) for fear of having to respond to the Florida Department of Revenue’s aggressive use tax positions. Even with the support of trade groups such as the NBAA, AOPA, NATA, and others, these proposals failed to get out of committee. Better luck next year (we can only hope). </p> </div> <div data-rss-type="text"> <p> <a href="/2009/05/florida-legislature-fails-to-pass-two-business-aviation-bills/"> Florida Legislature fails to pass two business aviation bills </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Tue, 19 May 2009 11:43:00 GMT https://www.businessaviationcounsel.com/2009/05/florida-legislature-fails-to-pass-two-business-aviation-bills https://www.businessaviationcounsel.com/2009/02/what-about-battleship-grey Would it help public opinion about business aviation if business aircraft were outfitted differently? If John Q Public took a peak aboard, he’d say “ugh, you guys fly in this thing?” Perhaps one of the completion centers or manufacturers ought to develop the “regular guy” interior, like in the Rodney Dangerfield movie. The entire interior… The post What about battleship grey? first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> Would it help public opinion about business aviation if business aircraft were outfitted differently? If John Q Public took a peak aboard, he’d say “ugh, you guys fly in this thing?” Perhaps one of the completion centers or manufacturers ought to develop the “regular guy” interior, like in the Rodney Dangerfield movie. The entire interior would be shades of grey: grey cloth seatcovers (you know, that really thick material that gets pilly), grey carpet, grey headliner, grey countertops in the galley (of course Corian and not granite) and grey seatbelts. And there would be no shiny surfaces – no brass, polished chrome. Even the seatbelt buckle would be metal like the airlines. Food would be served on grey plastic plates with grey plastic silverware. The flight phone would have a credit card slot in it. Passengers would need to put quarters in the slot to use the toilet. And the finale? Paint business aircraft battleship grey. No more sleek shiny white jets with nice striping. And by the way, change those swept wings — it may be fuel efficient and aerodynamic, but it just looks too cool. Too much like a fighter jet. Too much like you’re having fun and not working. If Rodney Dangerfield were alive he would appreciate this, although he may have preferred plaid. </p> </div> <div data-rss-type="text"> <p> Just a thought. SHL. </p> </div> <div data-rss-type="text"> <p> <a href="/2009/02/what-about-battleship-grey/"> What about battleship grey? </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Mon, 23 Feb 2009 16:05:00 GMT https://www.businessaviationcounsel.com/2009/02/what-about-battleship-grey https://www.businessaviationcounsel.com/2008/11/sale-of-corporate-aircraft-not-a-good-use-of-automaker-shareholder-money With Senators blasting the automakers about using corporate aircraft to transport their executives to Senate hearings, it will be interesting to see whether the automakers include the liquidation of their fleets in the economic plans due to Congress on December 4, 2008. The ironic thing about it is that if disposing of their fleets is… The post Sale of Corporate Aircraft Not a Good Use of Automaker Shareholder Money first appeared on Lapayowker Jet Counsel. <div data-rss-type="text"> <p> With Senators blasting the automakers about using corporate aircraft to transport their executives to Senate hearings, it will be interesting to see whether the automakers include the liquidation of their fleets in the economic plans due to Congress on December 4, 2008. The ironic thing about it is that if disposing of their fleets is part of their plans, the aircraft will be sold at tremendous losses in light of the current aircraft sales market resulting in multi-million dollar losses to shareholders. The loss of value to shareholders would likely finance the use of the aircraft for the next several years. The reasons for having corporate aircraft have not changed – executive security, immediate access to senior executives, increased productivity and an ability to reach areas of the country (or the world) not easily reached by commercial carriers. To be pressured into selling into a downward spiraling market in order to obtain government funding seems absurd at best. </p> </div> <div data-rss-type="text"> <p> <a href="/2008/11/sale-of-corporate-aircraft-not-a-good-use-of-automaker-shareholder-money/"> Sale of Corporate Aircraft Not a Good Use of Automaker Shareholder Money </a> </p> </div> <div data-rss-type="text"> <p> <a href="https://www.businessaviationcounsel.com"> Lapayowker Jet Counsel </a> </p> </div> Fri, 28 Nov 2008 16:07:00 GMT https://www.businessaviationcounsel.com/2008/11/sale-of-corporate-aircraft-not-a-good-use-of-automaker-shareholder-money