Transaction Highlights
Representing 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.
Personal Use
The personal use of business aircraft remains a hot topic in the aviation industry. A company may be disallowed significant deductions if there is personal use of corporate aircraft. Additionally, an officer or employee using the aircraft for non-business purposes will have income imputed to him or her as a fringe benefit. An experienced advisor can assist a company or executive to reduce the negative tax ramifications of non-business flights. See the discussion under Public Companies for challenges faced by public companies with non-business use of corporate aircraft.
AVIATION RESOURCES
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.
Personal Use
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.
Aircraft Registration
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.
Public Companies
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?
Financing Options
THE RIGHT TEAM. THE RIGHT DEAL.
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.
- Stewart Lapayowker