The Offer to Purchase provides a roadmap to the key elements of the purchase agreement.
Represented aircraft owner in connection with the simultaneous fleet transition involving the acquisition and trade in of 12 business aircraft.
Represented an aircraft owner in connection with arrangements for having its aircraft appear in the MGM major motion picture James Bond 007 Casino Royale starring Daniel Craig.
Letters of Intent/Offers to Purchase an Aircraft
A Letter of Intent (also referred to as an Offer to Purchase) provides a roadmap to key elements of the purchase agreement.
Letters of Intent typically address the following terms and conditions:
- Aircraft description
- The purchase price of the aircraft
- Visual inspection process and location
- The scope of the pre-purchase inspection and identification of the inspection facility
- The deposit and identification of the escrow agent
- Delivery conditions
- Timing of execution of the purchase agreement
Failing to include important terms could result in misunderstandings when the purchase agreement is drafted.
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.
One of the challenges of using aircraft in business is understanding the effect of personal use on an executive and the company, and strategies for addressing income tax issues.
Letters of intent are an important start to most aircraft transactions, and failing to give them the proper attention can create costly misunderstandings.
Letters of Intent
Understanding the aircraft acquisition process is important in order to avoid common pitfalls and costly mistakes.
Aircraft Acquisition Process
In order to register an aircraft with the FAA, an individual or company must meet specific requirements. There are methods available for non-U.S. citizens to register aircraft with the FAA.
Public Companies have unique concerns when purchasing corporate aircraft and structuring their operations, including from the perspective of SEC disclosure of non-business use, security and confidentiality.
Acquiring an aircraft currently registered outside the United States takes careful planning and requires answering some fundamental threshold questions. Exporting aircraft may not require the payment of duty, but failure to make appropriate customs entries can be costly.
Import / Export
Planning opportunities exist that can defer or even eliminate the imposition of sales and use taxes in almost every state.
Sales and Use Tax
In addition to aviation counsel, a successful transaction requires having experienced aviation professionals and tax advisors.
The Right Team
Our attorneys are experienced with helping clients navigate the often counter-intuitive rules of the FAA and other regulatory authorities.
The Dilemma of Single Purpose Entities
When acquiring an aircraft, several financing alternatives are available. Which is right for you?
THE RIGHT TEAM. THE RIGHT DEAL.
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.
- Stewart Lapayowker