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The NBAA Aircraft Transactions Guide provides an introduction to the regulatory, tax, financial and transactional issues that come together during an aircraft acquisition. To successfully complete an aircraft transaction, it is critical that the entire team, from flight department personnel to representatives from company headquarters, understand the basic considerations that go into properly structuring aircraft ownership and operations.
While every aircraft transaction is unique, the guide is structured around the following process that many buyers and sellers have found to be successful:
- Preliminary Considerations: Best practices for assembling the acquisition team and consideration of regulatory/tax issues when developing an aircraft ownership and operating structure.
- Contract and Title Issues: Details on the letter of intent, title and lien searches, aircraft purchase agreement and pre-purchase evaluation.
- Closing Process: Strategies for managing the aircraft registration process and dealing with complex issues such as non-citizen trusts.
- Post-Closing: Checklist to ensure documentation and regulatory requirements are met after the closing.
To help NBAA members understand the aircraft transactions process and to develop best practices, the NBAA Tax Committee and its Aircraft Transactions Working Group created this publication.