In the wake of the economic downturn, business boomed for aircraft repo specialists, who seized aircraft from owners delinquent on their loans. Yet repos have had no effect on the charter market, which depends on privately owned aircraft for the majority of its lift. Why no ripple effect?
A federal court in Texas recently ruled that a 1976 King Air C90 that crashed before its resale was finalized was not covered by insurance because the purchase was not yet complete when the accident occurred. According to a report in a recent issue of the Lawyer-Pilots Bar Association Journal, two days after a successful acceptance flight, the buyer wired funds to an escrow account with instructions to release the money to the seller.