Aircraft Transactions and Planning
Vorys has been advising clients regarding aircraft transactional and planning matters for more than 40 years. We understand that the ownership and operation of corporate aircraft can raise significant SEC reporting, tax, commercial, regulatory and corporate governance issues, and know how to anticipate and respond to the legal and strategic matters involved.
We have counseled a wide range of clients with respect to a broad spectrum of aircraft transactions and planning matters. Our clients include public companies, mid-size businesses, airports and high net worth individuals. In addition, we represent financial institutions in connection with aircraft loans and leases.
We have represented these clients in over 100 transactional and/or planning projects, involving matters such as:
- Acquisitions and dispositions of corporate and personal aircraft (including through simple and complex like-kind exchanges)
- Synthetic leases and other financing arrangements
- Acquisitions of fractional aircraft ownership interests
- Joint ownership agreements
- Corporate flight department structuring (for FAA compliance and tax planning purposes)
- Intra-group leasing transactions
- Personal and director use of corporate aircraft (SEC reporting, SIFL-rate compliance and time-sharing agreements) and other tax planning
- Preparation of corporate policies for aircraft usage
- Third-party aircraft operations and management agreements
- General FAA compliance and certification matters
- Credit agreement issues (including collateralization of aircraft and covenant compliance)
Our representative experience includes:
- Representing various public and private companies in the acquisition or lease of aircraft
- Regularly counseling clients with respect to the regulatory aspects of the operation, purchase and sale of corporate aircraft
- Representing a U.S. lender in an EXIM Bank guaranteed credit transaction for the purchase of multiple U.S. aircraft by a Nigerian airline
- Representation of an international lender in connection with leasing of aircraft to various federal, state and local agencies
- Advising an American multinational corporation on acquisitions and dispositions of aircraft (including the like-kind exchange of our client’s Beechjet for a Falcon)
- Advising an American multinational corporation on intra-group aircraft leases, and aircraft leases involving executives
- Advising an American multinational corporation on tax and SEC issues associated with personal use of aircraft by officers and/or directors
- Negotiating and documenting, on an expedited basis, an aircraft exchange and the subsequent financing of the aircraft acquired in the exchange