As most NBAA attendees will attest, the safe and legal operation of an aircraft is a complex task. With a seemingly endless list of agencies to answer to, it is all too easy for something to fall through the cracks. Aviation law specialist Advocate Consulting Legal Group (Booth No. C9314) assists its clients in developing and implementing entity structures and contractual arrangements to maximize tax savings, while complying with FAA, DOT and state regulatory requirements.
Financing, Insurance and Taxes
Issues regarding financing of aircraft; aviation insurance; tax issues for aircraft operators; new companies and people in the aviation financing and insurance industries.
Janine Iannarelli, president of Par Avion aircraft consulting, based in Houston, Texas, has weathered the storm, but after 17 days with international deals on hold she wasn’t excited by the solutions the U.S. Congress and executive branch came up with to deal with its debt and budget problems.
The way Iannarelli tells it, when the FAA aircraft registry shut down, sales deals shut down with it. “New aircraft couldn’t be delivered and any transactions that needed the registry basically had to wait,” she explained to AIN.
Ilyushin Finance Co. (IFC) is entering the business aviation market with plans to have some of the airliners it has on order for its lease portfolio outfitted with VIP interiors. For the most part, the aircraft to be offered for lease for private and corporate clients will be Russian-made airliners, such as the Tupolev Tu-204 and Antonov An-158, but IFC also has orders for new aircraft such as Sukhoi’s Superjet SSJ-100 and Irkut’s MC-21.
The Aircraft Owners and Pilots Association (AOPA) recently launched AOPA Aviation Finance (AAF) Company, a loan brokerage venture aimed at matching association members who require aircraft purchase financing with suitable lenders. It will also help facilitate member loans for avionics updates, either through straight loans using the aircraft as collateral when it is fully owned, or through refinancing of the aircraft while it is still being paid off.
The National Air Transportation Association (NATA) has once again partnered with aviation data provider Conklin & de Decker Associates for its annual Commercial Operators Tax Seminar, which will be held in Oak Brook, Illinois on August 6 and 7. Designed to educate Part 135 operators, the seminar will address the latest tax issues affecting aircraft charter and management companies as well as outline important best practices from industry experts.
China Business Aviation Group (CBAG, Booth H420), founded in 2010 by business aviation veteran Jason Liao, chairman and CEO, is continuing its efforts to boost the region’s business aviation industry and become its leading services provider. Here at ABACE yesterday it announced agreements with engine-care specialists Jet Support Services, Inc. (JSSI, Booth H418), flight crew employment agency ACASS (Booth H217) and business aircraft sales and charter company China Hongly Aviation Group.
Born in 2011 from the spinoff of Regourd Aviation’s helicopter department, Heli Asset is a global helicopter sales and acquisition service that manages its brokers and clients in what it says is a fresh, new way. The Paris-based company has offices on six continents and is currently offering 11 helicopters for sale.
Global helicopter lessor Milestone Aviation Group of Dublin, Ireland, placed orders for up to 74 helicopters from Eurocopter and Sikorsky worth more than $1.75 billion today at Heli-Expo 2013, which opened this morning in Las Vegas. These additional helicopters will double the assets at Milestone.
Helicopter Association International (HAI) president Matt Zuccaro fired back at the White House following its late February call for an end to the alternate depreciation tax plan for corporate aircraft. The tax plan allows buyers of general aviation aircraft to depreciate their purchases over five years rather than the seven-year depreciation mandated for commercial aviation.
Global helicopter lessor Milestone Aviation Group of Columbus, Ohio, and Eurocopter announced at Heli-Expo ‘13 this morning purchase orders with options for up to 15 EC225 Super Puma and five EC175 helicopters, contracts worth as much as $540 million (€415 million). The valuation is based on a price of €22.5 million each for the EC225 and €14 million each for the EC175s.