The Legal and Tax Considerations In Acquiring A Private Aircraft

The following is a guest post by David Dannreuther, Partner and Philip Munro, Associate, of Withers LLP. Withers is an international law firm with capability to act in aircraft transactions through its Hong Kong, London, Milan, New Haven and New York offices.

The credit crunch and the global recession have plainly had an impact on the private aircraft market with second hand aircraft now marketed at a discount on the prices previously achieved and with there being increased delivery positions available on new aircraft. That said, as the recent interest in the first contracts to acquire the Gulfstream G650 showed, the private aircraft market remains busy and acquisitions continue to be made. A number of legal and tax considerations impact on the acquisition of a private aircraft that should be considered in advance of a purchase to ensure that the purchase takes place through a structure that is optimal from a tax, liability and operational perspective. All too often these considerations are neglected.

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Air Travel and Private Aviation Are Not the Enemy

The following is a Guest Post from Robert Mann, Jr. :

Air travel is the American Way.  Our air travel market is the world’s largest and our extent and use of scheduled and private aviation far exceed the rest of the world combined.  Scheduled and private aviation have for decades been major contributors to American business productivity.

America is a vast, diverse country where private aviation is vital and essential infrastructure — and not only where scheduled commercial air service links are sparse and circuitous.  Private aviation contributes to greater business efficiency, faster communication and improved readiness in times of peace and conflict. Read the story »