YouTube | Advocate Consulting Legal Group, PLLC - The Aviation "TLC" Provider- Part 2

When is it time to renew an aircraft’s registration?

Transcript:

Aircraft registrations expire every 3 years and need to be renewed. The easiest way to renew is to follow the instructions included in the letter the FAA sends you 6 months before expiration. A similar letter is sent a month letter. Both of these letters include a personalized registration code that you can use to register online, which is the easiest way. If you do not have that code you can also renew by sending a paper application to the FAA.

What taxing authorities should I be aware of when operating an aircraft?

Transcript:

When operating an aircraft there’s a bunch of authorities that we’re always paying attention to. We want to make sure we’re FAA compliant and DOT compliant. There’s also a variety of different taxing authorities that one should be aware of or conscious of when they’re operating a business aircraft. The IRS is a simple, kind of first thing we think of when we think of taxing authorities. It is important to comply with IRS rules and regulations,

What is truth-in leasing?

Transcript:

The truth in leasing rule requires that any time use of a large aircraft, meaning one greater than 12,500 pounds gross takeoff weight is sold. The terms of that sale must be clear and well documented. It must be in writing and signed with one copy kept on board the plane and one copy sent to the FAA at least 24 hours before the lease’s first flight. The agreements need certain specific disclosures right above the signature line and the parties must contact the FAA at least 48 hours before the first flight,

What is the typical rental period for an aircraft dry lease agreement?

Transcript:

Aircraft dry lease agreements are very common in the industry, but there’s a lot of misunderstanding of what a typical lease period might be when state or local taxing authorities take a look at these agreements. It’s quite typical that in a dry lease agreement the average period of use for the lessee is going to be by flight hour, so they’re hourly agreements very commonly. This is the case because aircraft expenses and operation vary dramatically by the number of hours the engine is going to run rather than whether or not you’re going to have possession and control of the aircraft for a period of months or years because aircraft value is largely determined by the use profile.

What is the purpose of an aircraft Letter of Intent?

Transcript:

Once a buyer and seller have struck a deal for an aircraft purchase, they will often want to move quickly ahead with the pre-purchase inspection. Too quickly, to first degree on a comprehensive aircraft sale agreement. A letter of intent is useful to bridge this gap and serves two functions. First, to memorialize the general terms of the deal. Second, to divvy up the transaction costs the parties incur in the meantime.