Aviation Law Questions Over Chapter Twelve SP18-1.doc

3 explain how that difference in primary motivations

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3. Explain how that difference in primary motivations may lead the seller-lessee in a leaseback to act in a manner that may be contrary to the owner-lessor’s best interests. The principal incentive of the lessee to sell the aircraft in the sale and lease contracts is to sell the aircraft. The introduction of such incentives may motivate the lessee to act later in a way that could impede the smooth progression of the transaction. In addition, Buyer/Less could pay much higher prices for aircraft when they are included in the contract than if they do not include contractual rent. Therefore, leasing contracts are offered as incentives to encourage her to purchase aircraft that she may not otherwise be able to afford. 4. You are an aircraft owner and hold a commercial pilot certificate, but do not hold a Part 135 certificate. Can you legally rent or lease your aircraft to others and then allow them to hire you as their personal pilot to fly the aircraft for them in their travels? Explain. No, you would not be legally allowed to do so. The basic presumption applied by the FAA is that if the aircraft and crew are both provided by the same source, the transaction is not a lease, but a charter, so that the operation could not legally be conducted under the
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  • Fall '18
  • vandoren
  • attorney, Pilot certification in the United States, International Aviation Law

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