Represented aircraft owner in connection with the acquisition of Dassault Falcon 900 as part of synthetic lease financing and reverse 1031 exchange involving synthetic lease.
In the current economic climate, aircraft financing has become an extremely important aspect of an aircraft purchase, especially since aircraft transactions do not contain financing contingencies like residential mortgage financing. Aircraft financing comes in a variety of forms which typically include: (i) asset based financing, where the lender receives a mortgage on the aircraft, (ii) lease financing, which includes operating leases (where the lessor receives title and tax benefits and registers the aircraft in its name, (iii) synthetic lease financing (where the lessor receives title, but the lessee receives the tax benefits and registers the aircraft in the lessee’s name). It is important to select a lender that can not only provide the most competitive interest rate but is also experienced in business aviation. Aircraft transactions tend to move quickly, with the financing needing to be ready at the time of closing. If financing is not ready when the aircraft is returned to service following its inspection, a buyer can be at risk for default under the purchase agreement thereby putting its deposit in jeopardy.
We have extensive experience negotiating different types of finance documentation including loan agreements, aircraft mortgages, and tax-oriented operating leases with premier aircraft lending institutions.
KEEPING YOU ON COURSE
We are experienced in working with tax, legal and financial advisors of companies of all sizes in addition to family offices, to implement appropriate operating structures and planning objectives. For first time business aircraft buyers, we can quickly assemble a team of experienced industry professionals and others to assist the client with business, technical and other aspects of an aircraft purchase and ongoing aircraft management under Parts 91 and/or 135 of the Federal Aviation Regulations.
THE RIGHT TEAM. THE RIGHT DEAL.
There is one thing that a safe pilot has 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.
- Stewart Lapayowker