You have complex challenges
Whether you own and operate aircraft as an individual or a corporate fleet, you regularly face complex leasing and financing issues. Many of these have significant tax consequences—including big penalties if they’re not done right. Add the complexities of the federal aviation regulations and airport access issues, and you have complex challenges that should only be handled by legal counsel who knows your business and understands both your industry and the aviation rules.
You need Porter & Hedges
Our team combines legal and business knowledge of the aviation industry with a personal passion for flying. We frequently represent clients in the purchase, sale and ownership of whole and fractional interests in aircraft, including each of the national fractional ownership programs. We also work with most major banks and lessors to structure, negotiate and document aircraft financing arrangements, including traditional finance as well as synthetic and other leasing arrangements.
Fractional Ownership Programs: A special focus
Our emphasis on helping clients buy and sell whole and fractional interests in turbine aircraft involves a wide variety of issues including the federal aviation regulations, ownership structures, federal and state income tax, state sales and use tax, and federal aviation excise tax.
When we work with you on a transaction, we’ll help you understand and compare each fractional program. Our lawyers can negotiate enhancements to standard program documents, including various lease and other financing alternatives. We can also negotiate and draft related aircraft management, co-ownership and interchange agreements, and develop and analyze ownership structures that reflect financial reporting issues as well as income, sales, exercise and property tax considerations.
Representative examples of the solutions we provide
- Negotiating and closing the sale or acquisition, including related financing, of new and used executive turbine aircraft ranging from Challengers to King Airs.
- Structuring like-kind exchanges of aircraft, including reverse and deferred exchanges.
- Crafting ownership and financing arrangement for whole and fractional executive aircraft interests, including synthetic off balance sheet leases, true leases, non-recourse financing and secured financings.
- Handling transactions that involve airports and fixed base operations (FBOs), including fuel and hangar facilities, ground leases and flowage fees.
Aircraft aren’t just transport vehicles – they present complex operational, financing and tax challenges for anyone involved in buying, selling or leasing one. Porter & Hedges takes a personal interest in making sure that your aircraft transaction is done right in the way that works best for you.
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