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  • NAFA Administrator posted an article
    NAFA Welcomes New Member: LifeStyle Aviation see more

    FOR IMMEDIATE RELEASE: March 6, 2024 

                                     

    Contact: Tracey Cheek 
    tlc@nafa.aero  
    405.850.1292

    Joseph Dail 
    Finance & Insurance Specialist 
    406-FLY-1-NOW 
    C: 336.380.0447 
    joseph@lifestyleaviation.com 
    www.lifestyleaviation.com 

     
    NAFA Welcomes New Member: LifeStyle Aviation 

     

    Edgewater, MD –  National Aircraft Finance Association (NAFA) is pleased to announce that LifeStyle Aviation has recently joined its network of aviation professionals. Lifestyle Aviation is dedicated to broadening access to aviation for individuals and businesses, offering innovative ownership and financing options that make owning a plane more affordable and attainable.  

    “NAFA members facilitate the financing of general and business aviation aircraft on a global scale,” said Ed Medici, NAFA President. “We welcome and support LifeStyle Aviaiton’s services that play a role in advancing the interests of NAFA members within the aviation industry.”  

     

    About LifeStyle Aviation: 
    LifeStyle Aviation is committed to realizing the dream of flight for everyone by providing access to modern, innovative aircraft for personal and business use. Beyond aircraft sales, the company fosters a community of aviation enthusiasts passionate about flying.   

    LifeStyle Aviation distinguishes itself through its specialization in the Diamond Aircraft line, known for its cutting-edge technology, safety features and efficiency. LifeStyle Aviation is also dedicated to empowering pilots through comprehensive training programs offered through its network of flight schools, ensuring pilots of all skill levels have the knowledge and confidence to take to the skies safely.  

    In addition to aircraft sales and training, LifeStyle Aviation serves as a hub for aviation enthusiasts. The company hosts events, seminars and fly-ins where pilots can come together to share their passion for flights and connect with others who share their love of the sky.  

    Joseph Dail, Head of the Finance and Insurance Department, plays an important role in realizing aviation dreams. He has expertise in aviation financing and insurance and ensures customers have access to flexible and affordable options for purchasing and protecting their aircraft.  

    Whether seeking financing to purchase a first plane or the right insurance coverage to protect your investment, Joseph and his team guide clients through every step of the process. With a commitment to innovation, safety, and community, LifeStyle Aviation doesn’t just sell planes; it helps people discover the joy of flight and make it part of their lifestyle.  

    For more information, visit lifestyleaviation.com.   

    About NAFA:  
    The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members on the most up-to-date industry trends and best practices. Government legislation, market influences, and industry insights allow member companies to provide the highest quality services the industry has to offer. 

     March 07, 2024
  • NAFA Administrator posted an article
    NAFA Welcomes New Member: Integrity Jets see more

    FOR IMMEDIATE RELEASE: March 8, 2024 

                                     

    Contact: Tracey Cheek  
    tlc@nafa.aero  
    405.850.1292

    Eric Hammer 
    President 
    336.553.8888 
    ehammer@integrityjets.com 
    integrityjets.com 

     

    NAFA Welcomes New Member: Integrity Jets    

     

    National Aircraft Finance Association (NAFA) is pleased to announce that Integrity Jets has recently joined its network of aviation professionals. Led by industry veteran Eric Hammer, Integrity Jets is a boutique aircraft brokerage firm that provides brokerage, acquisition and market intelligence services.   

    NAFA members form a network of aviation finance services who diligently and competently operate with integrity and objectivity throughout the world,” said Ed Medici, NAFA President. “We’re excited to welcome Integrity Jets to our growing organization. Their services enhance NAFA’s available offerings, and we support their services to advance our members.” 

    About Integrity Jets: 
    Integrity Jets connects buyers and sellers of private aircraft. The company offers comprehensive brokerage services tailored to each client’s needs.   

    Integrity Jets understands that buying or selling an aircraft is a complex and time-consuming process, and engaging with Integrity Jets ensures clients experience the most stress-free, efficient and financially beneficial transaction possible. The company is committed to delivering exceptional customer service and meeting each client’s unique requirements and preferences. 

    About Founder Eric Hammer:  
    With 33 years in the aerospace industry, Eric Hammer recently launched Integrity Jets. For the past 22 years, he has specialized in representing buyers and sellers of business aircraft.  

    Hammer’s mission is to establish Integrity Jets as a trusted, strategic and tactical partner for clients in acquiring and disposing of their business aircraft.  

    Hammer’s background includes: 

    • Overseeing the sale and acquisition of over 225 turbine-powered aircraft. 

    • Leading pre-owned aircraft sales efforts at Embraer for nearly a decade. 

    • Managing new and used Citation and Caravan sales at Cessna for eight years. 

    • Serving for 11 years in NASA’s Mission Control Center in Houston as a Flight Dynamics Officer for the nation’s space program.  

    • Holding a commercial, multi-engine, instrument-rated pilot certification.  

    • A 20-year veteran of the Navy Reserve 

    • Earning a Master’s Degree in Aerospace Engineering 

    • Achieving the title of five-time Powerlifting National Champion.  

    For more information, visit integrityjets.com.   

    About NAFA:  
    The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members on the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer. 

     March 04, 2024
  • NAFA Administrator posted an article
    Pre-Buy Inspections: What Do You Need to Achieve? see more

    The buyer’s and seller’s view of what a Pre-Purchase Inspection of a business aircraft should include often differs, making negotiation a sensitive matter. To simplify matters, buyers should ensure their expectations are reasonable, Chris Kjelgaard learns...

    In most purchases of pre-owned business aircraft, Pre-Purchase Inspections (PPIs) are necessary and highly important initial tasks.

    Performed at the buyer’s request, the PPI is carried out to assess the physical condition of the aircraft – allowing the buyer and seller to then negotiate what (if any) repair or refurbishment work is needed to satisfy the buyer’s condition expectations – and ensure the documentation of the aircraft’s maintenance and operating history is complete.

    An obvious basic first step for would-be buyers is to determine what they expect the PPI to accomplish. Clearly, it should either satisfy the buyer that the aircraft is in a condition which allows them to complete the purchase, or produce findings or repair/alteration actions which the buyer can then ask the seller to undertake before the transaction is completed.

    Ultimately, however, the buyer’s expectations of the PPI’s scope should be reasonable enough to prevent the seller balking completely, creating an unresolvable hurdle causing the deal to founder.

    Setting Realistic Aircraft Pre-Purchase Inspection Expectations

    While for inspection-cost and other reasons the seller and buyer may not agree on what each wants the scope of the PPI to include, their differences should be resolvable by means of agreeing to adopt the recommendations made by an independent third-party.

    For example, in their pre-buy negotiations, the most common way for both seller and buyer to achieve consensus is to have the OEM or third-party MRO service center hosting (and often conducting) the PPI first to provide a recommended PPI report.

    Lee Rohde, President & CEO of Essex Aviation, says the MRO facility should have a specific recommended PPI report for every different aircraft model it handles, based on the manufacturer’s own inspection and maintenance recommendations and accounting for every unique aspect of that model.

    The report will also take account of the service center’s own findings on the individual aircraft’s condition, having performed its own preliminary inspection of the aircraft in question.

     

    Read full article here

    This article was originally published by AvBuyer on February 28, 2024.

     March 01, 2024
  • NAFA Administrator posted an article
    NAFA Welcomes New Member: Piedmont Jets see more

    FOR IMMEDIATE RELEASE: February 28, 2024 

                                     

    Contact: Tracey Cheek 
    tlc@nafa.aero  
    405.850.1292

    Jared Hasty 
    Co-Founder 
    770.233.7518
    Sales@piedmontjets.com  
    https://www.piedmontjets.com 
     

     

    NAFA Welcomes New Member: Piedmont Jets    

     

    National Aircraft Finance Association (NAFA) is pleased to announce that Piedmont Jets has recently joined its network of aviation professionals. Piedmont Jets is a highly specialized, boutique aircraft brokerage and acquisition firm.  

    “Piedmont Jets joining NAFA is a step forward in advancing our mission to improve and facilitate the financing process to support aircraft buyers,” said Ed Medici, NAFA President. We welcome Piedmont Jets to our growing organization and enhancing opportunities for all our members.”  

    About Piedmont Jets: 
    Piedmont Jets leverages experience, efficiency and expertise to navigate clients through aircraft transactions. Driven by a team of experienced pilots with a love of aviation and building lasting relationships, Piedmont Jets aims to make transactions simple and seamless. 

    After careful analysis backed by industry-leading data, the Piedmont Jets team will source worldwide, on and off-market opportunities while managing the details of the procurement process.  

    Piedmont Jets provides a roadmap so clients are informed and empowered throughout the acquisition. The Piedmont Jets team uses its tools, processes and industry relationships to ensure maximum exposure and return on clients' investments. 

    For more information, visit piedmontjets.com.  

    About NAFA:  
    The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members on the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer. 

     February 29, 2024
  • NAFA Administrator posted an article
    NAFA Welcomes New Member: Shore Premier Finance see more

    FOR IMMEDIATE RELEASE: February 23, 2024 

                                      

    Contact: Tracey Cheek   
    tlc@NAFA.aero   
    405.850.1292   

    Scott Walter 
    scottwalter@shorepremierfinance.com 
    757.995.0452

     

    NAFA Welcomes New Member: Shore Premier Finance 

     

    The National Aircraft Finance Association (NAFA) is thrilled to welcome Shore Premier Finance, the specialty lending division of Centennial Bank focused on passion assets. With $1.2B in assets, Shore Premier Finance is one of the nation’s largest marine lenders, and they’re adding aviation finance to their portfolio. 

    “NAFA members proudly finance, support or enable the financing of general and business aviation aircraft throughout the world, and we are happy to add Shore Premier Finance to our association,” said Ed Medici, President of NAFA.   

    Shore Premier Finance has joined NAFA as part of their efforts to expand into aviation and perform better due diligence, and representatives from Shore Premier Finance will be attending the NAFA52 Annual Conference as part of that initiative and to connect with industry leaders. 

    About Shore Premier Finance:
    Since 2012, Shore has provided financing for high-end power boats, sail boats, and superyachts and inventory finance for marine dealers. In 2022, Shore began providing financing for luxury motorhomes as a complement to its marine business.  As its focus on passion assets has expanded, Shore intends to add the finance of personal and business aircraft to its offerings as well. 

    To learn more about Shore Premier Finance, visit www.shorepremierfinance.com.  

    About NAFA:   
    The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members on the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer. To add your company to our world-class network of the best in aircraft finance, sign up at https://www.nafa.aero

     February 23, 2024
  • NAFA Administrator posted an article
    NAFA Welcomes New Member: SVB Private see more

    FOR IMMEDIATE RELEASE – February 23, 2024 

     

    Contact: Tracey Cheek     
    tlc@NAFA.aero     
    405.850.1292     
     

    John Moran 
    Senior Vice President, Integrated Communications 
    John.Moran2@firstcitizens.com 
    212.461.5507 
     

    NAFA Welcomes New Member: SVB Private 


    The National Aircraft Finance Association (NAFA) is pleased to announce that SVB Private has recently joined its network of aviation professionals. SVB Private, part of First Citizens Bank and its First Citizens Wealth division, provides customized structured loans on turbine powered private aircraft to high-net-worth clients.  

    “NAFA members form a network of aviation finance services who diligently and competently operate with integrity and objectivity throughout the world,” said Ed Medici, NAFA President. “We’re excited to welcome SVB Private to our growing organization. Their services enhance NAFA’s available offerings, and we support their services to advance our members.” 

    About SVB Private: 
    SVB Private’s team of dedicated and specialized aircraft finance lenders can help optimize aircraft investment by providing customized lending solutions. These solutions allow clients to optimize their balance sheet by redeploying the capital they have invested in the aircraft. In addition, SVB Private competitively prices and structures loans commensurate with their clients’ personal and corporate banking relationships.   

    SVB Private provides a single point of contact, keeping the client fully informed throughout the loan approval and closing process. The bank leverages its deep understanding and connections within the private aircraft industry to help navigate the acquisition process, understand accounting treatments and FAA regulations, and align with other professionals to help make aircraft acquisition and ownership seamless and efficient.   

    Loan products for turboprops and jets include: 

    • Fixed and variable rate loans 

    • Acquisition financing 

    • Loan refinancing 

    • Pre-delivery payment financing for new aircraft 


    To learn more about SVB Private, visit https://www.svb.com/private-bank/

    About NAFA:   
    The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members on the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer. To add your company to our world-class network of the best in aircraft finance, sign up at https://www.nafa.aero

     February 23, 2024
  • NAFA Administrator posted an article
    Aircraft Finance: Questions to ask Before Applying see more

    Where aircraft financing is concerned, it is crucial for potential borrowers to plan ahead, asking the right questions before applying. Gerrard Cowan explores...

    There are a range of factors to coordinate for an aircraft purchase, all of which take time. This is particularly true where aircraft finance is likely to be a factor in the acquisition, and allowing the time to ask all the right questions prior to signing a financing deal is essential.

    If the process is rushed or compressed into a shorter timeframe than is standard, there are likely to be complications that will frustrate all parties involved.

    Buyers should reach out to financing contacts early in the process to find the right experts for their needs, according to Ramy Sidhom, Head of PNC Aviation Finance. “Building the best team of experts has nothing but upside for the buyer now and during the life of the aircraft.”

    The way you plan can either materially enhance the buyer experience or have a severely negative impact, he explains. “The financing simply becomes a lending arrangement if all parties are communicating and furnished with the accurate deal specifications.”

    He underscores the importance of studying the aircraft in question, determining the potential operating expenses, maintenance plans, etc. “The total determines how much money or liquidity will be needed to close on the transaction and to operate annually.”

    Timing is a factor here, too. “New contracts for most models have delivery wait times of two years or more. Does the wait time make sense, and if so, what will you do in the interim?

    “If evaluating a used aircraft, it is helpful to work with the financing team early in the process so that there are no delays in closing while the financer completes their due diligence.” Identifying the usage, registration and type of loan you are looking for upfront will ensure you are working with the right lender with the right type of financing, according to Brian Macbean, Director of Credit and Sales at AOPA Finance.

    “All lenders have different requirements. If you change one of those factors mid-process, you risk losing the financing altogether.”

    Read full article here

    This article was originally published by AvBuyer on February 14, 2024.

     February 19, 2024
  • NAFA Administrator posted an article
    NAFA Welcomes New Member: jetAVIVA see more

    FOR IMMEDIATE RELEASE: February 7, 2024    

                                     

    Contact: Tracey Cheek  
    tlc@NAFA.aero  
    405.850.1292  

     

    Kelly Wolff
    sales@jetAVIVA.com
    Mobile:  321.258.5057
    Office:  512.410.0295

     

    NAFA Welcomes New Member: jetAVIVA

    The National Aircraft Finance Association (NAFA) is thrilled to welcome jetAVIVA, a global leader in pre-owned aircraft sales and acquisitions, to its esteemed network of aviation professionals. As one of the world's largest private jet sales organizations, measured by total annual transaction volume, jetAVIVA brings a wealth of experience and expertise to the NAFA community. 

    “NAFA members form a network of aviation finance services who diligently and competently operate with integrity and objectivity throughout the world,” said Ed Medici, NAFA President. “We’re excited to welcome jetAVIVA to our growing organization. Their services enhance NAFA’s available offerings, and we support their services to advance our members.” 

    About jetAVIVA: 

    For almost 20 years, jetAVIVA’s expert team has assisted thousands of clients in purchasing and selling aircraft, providing expertise in the aviation industry to streamline transactions and ensure a smooth and successful process. jetAVIVA's specialized services can enhance transaction outcomes for NAFA members and their clients, making them a valuable partner in any deal. Additionally, jetAVIVA keeps a pulse on the state of the aviation market, providing NAFA members with up-to-date insights and trends. 

    jetAVIVA CEO Emily Deaton comments, "jetAVIVA is dedicated to supporting NAFA's membership with our expertise and established track record of success. We look forward to contributing to the association’s mission to provide the highest quality services the industry has to offer.” 

    To learn more about jetAVIVA, visit https://jetaviva.com.  

    About NAFA:   
    The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members on the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer. To add your company to our world-class network of the best in aircraft finance, sign up at https://www.nafa.aero

     February 07, 2024
  • NAFA Administrator posted an article
    Light Private Jets: Costs, Examples & Best Uses see more

    NAFA member, Thomas W. Mitchell, Executive Vice President of Essex Aviation, discusses light private jet costs, examples and best uses.

    Whether you’re exploring the wide world of private aviation for the very first time or are a seasoned traveler, it’s important to consider not only the utilization models available to you, but also the various aircraft classes you can from choose. This guide is intended to provide you with a better understanding of light private jets, including what benefits they have to offer, how they compare to other classes of private aircraft and more.

    What Is a Light Private Jet?

    A light private jet — also known as a light jet or small cabin jet — is the next class of jet aircraft up from very light jets, or VLJs. Although specifications and performance vary depending on each aircraft’s particular make and model, light private jets are generally capable of accommodating four to eight passengers, offer a maximum non-stop range of nearly 1,700 nm and have average cruising speeds of 420 knots.

    Most examples of popular light jets exceed the Federal Aviation Administration’s definition of Light Aircraft, as their maximum gross takeoff weight exceeds 12,500 lbs. While light private jets have certain advantages over midsize and large cabin jets, they do not offer a stand-up cabin or other amenities commonly associated with larger aircraft classes, such as a full-service galley or dedicated lavatory.

    What Benefits Do Light Private Jets Offer?

    Light jets are a popular option for both business and personal use due to their relatively low operating costs, high speeds and ability to fly above most adverse weather. Many light private jets also have excellent short-field performance, which grants aircraft owners access to a large number of small, less busy airports, often closer to their final destination.

    Additionally, given their smaller size, light private jets tend to require a lower upfront investment and require lower variable and fixed costs than larger classes of aircraft. Last but not least, a variety of light jets allow for single qualified pilot operation, which may be a key objective for owner-pilots.

    As with all other classes of aircraft, travelers interested in flying on light private jets have a variety of private aviation options available to them, including chartering, leasing and outright acquisition. When considering a light private jet, be aware of the aircraft’s specifications and available range, especially if all seats are to be occupied or if your destination airport has a unique short or high-altitude runway. Certain factors, such as the total number of passengers, the amount of luggage, weather conditions and runway length can impact a light private jet’s range capabilities. This can lead to the need to limit the weight of the jet, which reduces the maximum quantity of fuel it can carry.

    Read full article here

    This article was originally published by Essex Aviation

     January 26, 2024
  • NAFA Administrator posted an article
    NAFA Welcomes New Member: Pinnacle Financial Partners see more

    FOR IMMEDIATE RELEASE: January 23, 2024    

                                     

    Contact: Tracey Cheek  
    tlc@nafa.aero
    405.850.1292  

    Joe Bass 
    615.743.8219 
    joe.bass@pnfp.com 

    Faith Seifuddin 
    615.743.8437 
    faith.seifuddin@pnfp.com 

      

    NAFA Welcomes New Member: Pinnacle Financial Partners  


    National Aircraft Finance Association (NAFA) is pleased to announce that Pinnacle Financial Partners has recently joined its network of aviation professionals. Pinnacle Financial Partners provides a full range of banking, investment, trust, mortgage and insurance products and services designed for businesses, owners and individuals interested in a comprehensive relationship with their financial institution. 

    “NAFA members proudly finance, support or enable the financing of general and business aviation aircraft throughout the world, and we are happy to add Pinnacle Financial Partners to our association,” said Ed Medici, President of NAFA 

    About Pinnacle Financial Partners:  Pinnacle Financial Partners began operations in a single location in downtown Nashville, Tennessee, in 2000 and has since grown to approximately $47.5 billion in assets as of September 30, 2023. As the second-largest bank holding company headquartered in Tennessee, Pinnacle operates in 17 primarily urban markets across the Southeast. 

    Forbes lists it as 27 among America’s Best Banks. Pinnacle also earned a spot on the 2023 list of 100 Best Companies to Work For® in the U.S., its seventh consecutive appearance and was recognized by American Banker as one of America’s Best Banks to Work For ten years in a row and number one among banks with more than $10 billion in assets in 2023. 

    For more information, visit www.pnfp.com.  

    About NAFA:  The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members on the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer. 

     January 23, 2024
  • NAFA Administrator posted an article
    NAFA Welcomes New Member: Miller Management Company see more

    FOR IMMEDIATE RELEASE: January 18, 2024    

                                     

    Contact: Tracey Cheek  
    tlc@nafa.aero  
    405.850.1292

    Allen Miller 
    470.540.9172 
    678.772.1121 
    am@millermanagementcompany.com 

     

      

    NAFA Welcomes New Member: Miller Management Company  

      

    National Aircraft Finance Association (NAFA) is pleased to announce that the Miller Management Company (MMC) has recently joined its network of aviation professionals. MMC provides specialty asset recovery services to lenders.  

    “Miller Management Company joining NAFA is a step forward in advancing our mission to improve and facilitate the financing process to support aircraft buyers,” said Ed Medici, NAFA President. We welcome Miller Management Company to our growing organization and enhancing opportunities for all our members.”  

     

    About Miller Management Company (MMC): The Miller Management Company (MMC) provides recovery services to lenders, focusing on specialty assets, such as boats, motorcycles, equipment and aircraft.  

    MMC founder Allen Miller worked as a restructuring consultant for over 15 years and saw firsthand the need for a company to provide professional and compliant recovery services for specialty assets. All MMC team members are certified and receive ongoing training to ensure assets are recovered for lenders in compliance with relevant laws while preserving the collateral's value.  

    For more information, visit millermanagementcompany.com

     

    About NAFA: The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members on the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer. 

     January 18, 2024
  • NAFA Administrator posted an article
    Buying a Jet? Get your Letter of Intent Right! see more

    Letters of Intent are common in pre-owned business aircraft transactions, enabling buyers and sellers to outline the broad terms of a deal. As simple as they sound, there are many potential errors for buyers to avoid, as Gerrard Cowan highlights.

    Essentially, a Letter of Intent (LOI) offers the potential for a meeting of the minds between sellers and buyers on the major commercial terms of an aircraft transaction. Though it is typically non-binding, it is important to get your LOI right – for good reason…

    A good Letter of Intent sets an expectation that the parties will negotiate exclusively and in good faith with each other to try to reach the terms of a definitive aircraft purchase agreement, explains Jonathan M. Epstein, a Partner at law firm Holland & Knight.

    Ideally, the LOI is a relatively short document of two to three pages, written in plain English and covering a range of details. At the most basic level, it should set the purchase price and require a refundable good faith deposit to be placed with an agreed escrow agent, Epstein says.

    Additionally, the agreement should define whether the transaction will be a ‘hard deal’, meaning that after signing the purchase agreement the buyer can only reject the aircraft for limited reasons (such as the discovery of material damage history), or alternatively a ‘soft deal’ where the buyer can reject the aircraft after the inspection without cause.

    The LOI will also identify the general scope of the pre-purchase inspection and test flight, and set forth the condition that the aircraft must be in to accept delivery – for example, with “all systems functioning normally, current on all maintenance with no extensions, no material damage history, etc,” Epstein illustrates.

    On top of these requirements, it may address who will pay for ferry and test flights, as well as any unique issue that may   the deal if not negotiated up front. It should expressly state that the LOI is non-binding, except for binding confidentiality provisions, and that it expires if it is not executed by a certain date, though providing for some exclusivity until terminated.

    Finally, it is important that LOIs contain ‘know your customer’ language, Epstein says, particularly in international deals, requiring the counterparty to identify their beneficial ownership.

    Read full article here

    This article was originally published by AvBuyer on January 8, 2024.

     

     January 10, 2024
  • NAFA Administrator posted an article
    Dry Lease Agreements: What to Check Before Signing see more

    What are some important, but easily overlooked items in an aircraft dry lease agreement that lessees need to read and understand? Gerrard Cowan asks a selection of industry experts...

    Dry leases require lessees to source their own flight crew, presenting a range of unique challenges – and opportunities. But what are the key “small print” items that business jet lessees should study in any contract?

    Michele Wade, a partner at Jetstream Aviation Law, says there are many items a lessee should consider before signing a deal to lease an aircraft. For instance, they should ask questions of the lessor, obtain professional advice on anything they do not understand, and ensure the final written lease addresses the important terms.

    In a dry lease, Wade says, the lessee will write two checks – one for the lessor for the lease of the aircraft and another to the independent source providing the crew.

    “The lessee may want to inspect the aircraft and review the records before signing the lease,” she adds. “The aircraft lease will generally not contain any representation from the lessor as to the condition of the aircraft.”

    Moreover, the lease may contain a representation that the lessee will operate the aircraft in compliance with applicable laws and regulations, and so the lessee must confirm that the aircraft operations comply with such requirements (such as Federal Aviation Regulations in the US).

    Any operation that does not comply will risk the insurer denying coverage if a claim is made, while the FAA may seek penalties, Wade warns.

    “Nor should the lessee be an entity formed primarily to operate the leased aircraft,” she adds. “A sole purpose entity operating the aircraft may appear to be an escape from liability, but sole purpose entities are not eligible to operate aircraft on passenger-carrying flights under Part 91, which makes any such flight they conduct an illegal operation.”

    With larger aircraft there should be a ‘truth-in-leasing’ clause at the end of the lease, Wade adds. “The lessee has ‘operational control’, and the responsibility and liability that accompanies operational control. Because the lessee has operational control liability, it is important to confirm that the lessee’s operations are covered by the insurance.”

    And, in the US, relevant state departments of revenue may impose a sales or use tax on lease payments, Wade highlights, so lessees should determine if they must pay such a tax.

    Potential for Millions of Dollars of Liability

    David M. Hernandez, Business Aviation & Regulation Sub-practice Chair at Vedder Price, says he is astonished “that people lease aircraft and expose themselves to potentially millions of dollars of liability and regulatory enforcement without any idea whatsoever of the risks”.

    Continue to full article here

    This article was published by AvBuyer on December 20, 2023.

     December 20, 2023
  • NAFA Administrator posted an article
    NAFA Welcomes New Member: Snell & Wilmer see more

    FOR IMMEDIATE RELEASE: December 11, 2023    

                                     

    Contact: Tracey Cheek 
    tlc@nafa.aero  
    405.850.1292  

    Eli Mansour 
    emansour@swlaw.com  
    858.910.4772 

      

    NAFA Welcomes New Member: Snell & Wilmer  

      

    National Aircraft Finance Association (NAFA) is pleased to announce that Snell & Wilmer has recently joined its network of aviation professionals. Snell & Wilmer is an aircraft transaction advisory service that helps clients make the best decisions when buying, selling or owning a business aircraft.  

    “We’re excited to welcome Snell & Wilmer to our growing organization. Their services enhance NAFA’s available offerings, and we support their services to advance our members,” said Ed Medici, NAFA President.  

    About Snell & Wilmer: 
    Founded in 1938, Snell & Wilmer is a full-service business law firm with over 500 attorneys practicing in 16 locations throughout the United States and in Mexico. The firm represents clients ranging from large, publicly traded corporations to small businesses, individuals and entrepreneurs. 

    Snell & Wilmer’s aircraft law practice consists of knowledgeable attorneys experienced in the legal issues facing aircraft owners and operators, air carriers, flight schools and fixed base operators and other aviation-related service providers. They provide a full range of legal services related to the acquisition, ownership and operation of aircraft, tax planning and ownership structure, fixed base operators, maintenance and repair organizations and other aircraft service providers, FAA and DOT regulations, aircraft and component product liability and accidents and other aviation transactional and litigation matters.  

    Snell & Wilmer attorneys have experience in federal, state and local legal issues applicable to aircraft operations and transactions. In addition, several hold FAA pilot licenses and have diverse operating experience, including charter operations and military aviation. 

    For more information, visit swlaw.com

    About NAFA:  
    The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for 50 years. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members on the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer. 

     December 11, 2023
  • NAFA Administrator posted an article
    7 Reasons Why You Need an Aircraft Broker When Buying or Selling a Private Jet see more

    While engaging an aircraft broker adds a cost to the transaction, the benefits they bring in terms of expertise, market intelligence, time savings, and risk mitigation often outweigh the associated fees. However, choosing a reputable and experienced broker is crucial to maximize these advantages. NAFA member, Duncan Aviation was founded as an aircraft brokerage organization, and the Aircraft Sales & Acquisition team has been working with jet and turboprop owners on the sale and acquisition of aviation assets for more than 65 years.

    There are 7 main reasons why you’ll need a broker when buying or selling a private jet.

    1. Market Expertise: Aircraft brokers have in-depth knowledge of the pre-owned business jet market. A highly skilled brokerage team will be backed by an experienced technical team. They stay up-to-date on current market trends, aircraft values, equipment obsolescence, inspection programs, modifications, technical and performance specifications, and other relevant factors. This expertise allows them to provide valuable insights and guidance to clients, helping them make informed decisions in a complex marketplace.

    Read full article here

     December 06, 2023