Faa Aircraft Lease Agreement

While the guidelines give inspectors commonalities for checking dry water leases and information is useful to landlords and tenants, some formulations may benefit from further clarification, said Joanne Barbera of Barbera-Watkins, LLC. (9) Name of the person or parties responsible for operational control of the aircraft Sometimes lenders of a company or other stakeholders become the types of assets. a company can own. “Similarly, regulations in some highly regulated sectors, such as utilities, banks and insurance, can prevent direct ownership of an aircraft,” Barbera said. “In these cases, it may be necessary for the aircraft to be in a separate business and leased to the company that uses it.” The guidelines illustrate the often-discussed term “responsible Flight Standards Office” as an office with a service area covering the operator`s main site – its physical address, not the office with a service area covering the aircraft`s base site or check-in location. “I also see employee leasing when they need the plane for personal use,” Barbera said. “If the company wants to avoid the use of the aircraft as a function, a timeshare agreement – a kind of “wet leasing” [in which the owner provides both the aircraft and the crew] allows the employee to reimburse the additional costs – limited to twice the cost of fuel, plus a few other specific costs – in exchange for the use of the aircraft and a flight crew.” , the regulator. FAR – 91.23 – 91.54″ finds the truth in the rental requirements in leases and conditional sales contracts of large civilian aircraft registry of the United States Registry. For example, in some legitimate dry rental agreements, the owner may perform maintenance or execution work to enhance safety, but this should not necessarily mean that the owner has retained operational control of the aircraft.

The determination of the party exercising operational control is generally established on the basis of all the circumstances. If your dry lease agreements (timeshare or interchange agreements) have been verified for a few years, now is the time to complete this audit and confirm that the documents are in compliance with FAR Part 91 requirements. Of course, they want to separate the operating costs of the aircraft from the operating costs.

WordPress Themes