legal

Contact Information:                                                                                                          
 

Theresa C. Myers                                                                                                                     
theresa.c.myers@nafa.aero                                                      
410-571-1740                                                                                                                                                                                                      

Nada Ragland
ragland@aerolawcenter.com
954-400-4643

NAFA Welcomes New Member: Aero Law Center
 

Edgewater, MD — September 28, 2026 - The National Aircraft Finance Association (NAFA) is proud to announce that Aero Law Center has joined its distinguished network of business and general aviation finance professionals.

Aero Law Center concentrates its practice on aviation and aerospace law. Its transactions group represents buyers, sellers, owners, lenders and operators in domestic and cross-border purchases, sales and leases of business jets and helicopters, and handles the groundwork that financed transactions depend on title and lien review, FAA registration, trust and entity ownership structures for U.S. and non-U.S. owners, fractional ownership, Part 91 and Part 135 operating structures, and sales and use tax planning. The firm also advises on mergers and acquisitions of aviation businesses, including charter operators and repair stations, and its compliance and litigation groups handle FAA regulatory, enforcement and aviation dispute matters. Both firms’ partners, Founding Partner Jonathan A. Ewing and Managing Partner Nada Ragland, are Board Certified in Aviation Law by The Florida Bar, a credential currently held by fewer than 50 lawyers. The firm has handled multi-million dollars in aviation transactions and represents clients throughout the United States and internationally.

NAFA President Bryan Byers welcomes Aero Law Center to the National Aircraft Finance Association. “We are pleased to welcome Aero Law Center to NAFA and believe their experience in Aviation Law globally will benefit NAFA members.”

“Aero Law Center is proud to become a member of the National Aircraft Finance Association,” said Nada Ragland, who leads the firm’s Transactions Practice Group. “A financed aircraft purchase goes smoothly when the ownership structure, title, registration and tax questions are resolved before the loan documents arrive. That is the work we do for our clients every day, and we do it alongside the lenders, appraisers, title and escrow agents and other professionals who make up NAFA’s membership. We look forward to contributing to the association and to being a resource for its members and the borrowers they serve.”

For more information about Aero Law Center, visit www.aerolawcenter.com.
 

About NAFA:  

The National Aircraft Finance Association (NAFA) is a professional association comprised of over 191 companies that have promoted the general welfare of aircraft finance for more than 50 years. Through collaboration, expertise, and educational content, NAFA provides the business and GA aircraft finance community opportunities for growth and betterment. 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 with 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. 

More information at https://www.nafa.aero.

 NAFA members Senior Counsel Richard W. Petty and Associate Alex J. Welfringer with Holland & Knight share their latest article on California's Aircraft Personal Property Tax.  

California law treats aircraft as taxable tangible personal property subject to an annual appraisal and local property taxation. Unless a specific statutory exemption applies, every aircraft owner with aircraft that is based in or habitually hangered in the state faces an annual filing obligation, potential penalties for noncompliance, and a valuation process that can significantly affect the resulting tax bill.

Many counties, including Los Angeles County, have recently increased their enforcement efforts for noncompliance. With the April 1 filing deadline for 2026 aircraft property statements now passed, this Holland & Knight alert summarizes the key compliance requirements so that aircraft owners and operators – and their advisors – can plan ahead for the next assessment cycle.

California's Legal Landscape

California's Revenue and Taxation Code requires an annual assessment for property taxes of non-commercial aircraft that is regularly or "habitually situated" in California.¹ Qualifying aircraft are assessed at their tax situs – the location of the airport or hangar where the aircraft is regularly or "habitually situated." This distinction matters: The county where a private aircraft is habitually based has exclusive assessment authority. Temporarily removing an aircraft from the county on the January 1 lien date will not defeat the tax situs or exempt the aircraft from property taxes if the aircraft is regularly or habitually located in that county.

Read full article here

This article was originally published by Holland & Knight on September 22, 2026.

NAFA member David G. Mayer, law partner in the Global Aviation Group at Shackelford, McKinley & Norton, LLP, shares his latest article about the use of AI in aircraft deals.

Use AI cautiously and assess its output.

I am having fun using artificial intelligence (AI) in my professional and personal life, watching it comb the Internet, dig up data, and synthesize it for me.

Having used AI in actual aircraft deals and disputes, I find it a little scary how much it can accomplish in its infancy and the dangers it poses. The age of AI is here to stay, and it behooves us to at least understand it generally, if not use it.

AI can generate market research, draft reports and agreements, summarize mountains of data, and analyze or calculate pertinent metrics. In my legal practice, AI has helped me with research, summarizing articles and legal analysis, improving or correcting drafting, and flagging inconsistencies or errors in aircraft purchase agreements (APAs) and other documents. As its use expands, AI may lower transaction costs. It is not a panacea, but it can undeniably be a useful tool.

AI Conundrum

AI may save you time and improve your productivity, but it makes mistakes. That’s no secret. For me, AI lacks judgment; provides debunked, incorrect, or flawed analysis; and makes subtle or obvious errors I would rather not spend more time validating or correcting.

I haven’t yet encountered “hallucinations,” meaning the generation of incorrect, misleading, or nonexistent content. Recently, an experienced lawyer, who believed ChatGPT produced a “bulletproof” case summary, submitted it to a New Mexico court. ChatGPT did hallucinate: the summary contained nonexistent witnesses and fictional testimony. Reacting to his admitted “stupidity,” the court held him in contempt, fined him, and initiated an ethics review. 

Before the New Mexico case, on July 29, 2024, the American Bar Association issued Formal Opinion 512, stating that there is no “AI exception” to professional responsibility when using generative artificial intelligence (GAI). This implied warning doesn’t apply only to lawyers. Anyone who uses GAI or AI (AI) must tap into these systems judiciously and not depend on the results without due diligence. In short, distrust and verify AI, but don’t forsake it, because it will improve with more time.

Read full article here

This article was originally published by AINsight on September 11, 2026.

Aircraft owners often seek to offset part of their operating costs with charter revenue. First, they must ensure they meet a range of regulatory demands and legal considerations, as Gerrard Cowan highlights.

The legal fundamentals for aircraft management and charter usage have remained consistent in recent years. Nevertheless, it’s important for aircraft owners to understand them before seeking to make their aircraft available for hire through Part 135 operations. Gerrard Cowan explores.

“What does change from time to time is the degree of emphasis that government authorities place on one or another aspect of aviation safety and compliance,” says Ron Brower, Founder of RBAvLaw and a board member and legal counsel at the Air Charter Safety Foundation (ACSF).

The first rule is to never advertise, sell or operate charter services yourself, Brower warns. This could “open a Pandora’s Box of potential regulatory, tax and financial troubles”.

Instead, find an aircraft management business that has the legal authority to act as an air carrier and who can advertise, sell and operate charter flights using your aircraft, then pay you for its use.

“To ensure your best chance at success in this relationship with the aircraft manager, you should take care to understand the capabilities of its business, confirm its licenses and operating history, verify its safety culture and overall corporate culture, and develop a mutually agreeable plan for the flow of aircraft costs and charter costs,” Brower outlines.

Only once this is done should you enter into the written agreements necessary to make your aircraft available to the aircraft manager for charter.

“The happiest outcomes generally come from the development of a good relationship and reasonable, shared expectations for the aircraft, before the aircraft owner and aircraft manager finish their written agreements,” he says.

Read full article here

This article was originally published by AvBuyer on June 22, 2026.

Aircraft owners often seek to offset part of their operating costs with charter revenue. First, they must ensure they meet a range of regulatory demands and legal considerations, as Gerrard Cowan highlights.

The legal fundamentals for aircraft management and charter usage have remained consistent in recent years. Nevertheless, it’s important for aircraft owners to understand them before seeking to make their aircraft available for hire through Part 135 operations. Gerrard Cowan explores.

“What does change from time to time is the degree of emphasis that government authorities place on one or another aspect of aviation safety and compliance,” says Ron Brower, Founder of RBAvLaw and a board member and legal counsel at the Air Charter Safety Foundation (ACSF).

The first rule is to never advertise, sell or operate charter services yourself, Brower warns. This could “open a Pandora’s Box of potential regulatory, tax and financial troubles”.

Instead, find an aircraft management business that has the legal authority to act as an air carrier and who can advertise, sell and operate charter flights using your aircraft, then pay you for its use.

“To ensure your best chance at success in this relationship with the aircraft manager, you should take care to understand the capabilities of its business, confirm its licenses and operating history, verify its safety culture and overall corporate culture, and develop a mutually agreeable plan for the flow of aircraft costs and charter costs,” Brower outlines.

Only once this is done should you enter into the written agreements necessary to make your aircraft available to the aircraft manager for charter.

“The happiest outcomes generally come from the development of a good relationship and reasonable, shared expectations for the aircraft, before the aircraft owner and aircraft manager finish their written agreements,” he says.

Read full article here

This article was originally published by AvBuyer on June 22, 2026.

The webinar was presented by NAFA's Transactional Integrity Working Group and sponsored by Time Value Property Exchange (TVPX). The Transactional Integrity Working Group strives to educate NAFA members on topics of legality and fraud, which can occur at any stage of a transaction, and to provide resources such as this webinar which can help mitigate those risks. Topic: “Essentials of U.S. Customs Imports and Exports: What Every Bizav Professional Should Know”. The webinar was at 1:00 pm Eastern Time on Friday, May 15th. A panel of experts outlined the general concepts of imports and exports, and provided current tariff news, to help everyone recognize those situations which require timely legal and/or customs support.

Ed Kammerer, a Shareholder at Greenberg Traurig, moderated the 1-hour webinar. 

Our first panelist was Tobias Kleitman, President of TVPX, licensed US customs broker. Paula Connelly was our second panelist. Paula is a Customs and Trade Attorney with the law firm Sandler, Travis and Rosenblatt. Our third panelist was Katie Deluca, Partner at Harper-Meyer.

Tobias gave an overview of the basic/formal process to import and export aircraft through US customs. TVPX has a national permit, and they specialize in importing and exporting aircraft to and from the United States. He talks about what if the procedures aren’t followed? Paula talked about US Customs regulations and tariffs and what happens a filing is incorrect or inadvertently did not get filed and process to correct to avoid penalties, detention or seizures of the aircraft. Paula also discussed tariffs in Section 122 that are set to expire July 24, 2026. Katie gave an overview of aircraft purchases and sales. She emphasized the fact that you need to do your due diligence and address import/export issues as early as possible and be sure you have a custom broker who is experienced in Aviation. 

To hear more insight and details from each of these panelists, please listen to the full webinar in its entirety to gain a better understanding of Customs Import and Exports of Aircraft and Tariffs.  

Watch Webinar Here
 

NAFA member Shawn Holstein, President, CEO and Co-Founder of Holstein Aviation, shares his latest blog.

When a private aircraft is registered with the FAA, the registered owner’s name and address become part of a public record. For many buyers, that’s not a concern. For others — high-net-worth individuals, public figures, corporate owners seeking confidentiality, and non-U.S. citizens who want FAA registration — an aircraft owner trust offers a solution that addresses both privacy and legal structure in a single vehicle. 

Understanding how an aircraft owner trust works, when it’s useful, and what it actually accomplishes (and doesn’t accomplish) helps buyers make the right ownership structure decision from the start.

What Is an Aircraft Owner Trust?

An aircraft owner trust is a legal arrangement in which a trustee — typically a specialized trust company or financial institution — holds legal title to an aircraft on behalf of a beneficial owner. The trust itself is the registered owner of record with the FAA. The beneficial owner controls and uses the aircraft, but their name does not appear in the FAA aircraft registry.

The trust operates under a trust agreement that defines the relationship between the trustee and the beneficial owner, including the terms under which the trustee holds title, the authority of the beneficial owner over the aircraft, and the conditions under which the trust can be dissolved or the aircraft transferred.

From an operational standpoint, nothing changes. The aircraft is flown, insured, and maintained exactly as it would be under any other ownership structure. The difference is entirely in how title is held and who appears in the public record.

Read full blog here

This blog was originally published by Holstein Aviation on May 5, 2026.

NAFA member Amanda Applegate, Partner at Soar Aviation Law, shares her latest article on Lender's Aircraft Appraisals.

When a buyer elects to finance their aircraft, most lenders require an aircraft appraisal. Lenders will require one of two types of aircraft appraisals: 1) a desktop aircraft appraisal or 2) a physical appraisal of the aircraft.

A desktop, or remote, aircraft appraisal is based on certain aircraft information which is sent to the aircraft appraiser and the aircraft appraiser completes the appraisal based on the information received. The information usually needed to complete the desktop aircraft appraisal includes: a recent computerized aircraft maintenance report showing upcoming inspections and any past due items; aircraft make, model, and serial number; the aircraft configuration; and an aircraft specification, including current times on the airframe, engines and APU. The aircraft appraiser will also need to know if the aircraft is currently on any airframe, engine or other maintenance programs. Appraisers will also use market considerations and analyses in the appraisal.

Read full article here

This article was originally published by Soar Aviation Law on April 24, 2026.

NAFA member David G. Mayer, partner at Shackelford, McKinley & Norton, LLP, shares his latest blog. 

Trust the real experts, not armchair ‘experts,’ when buying an aircraft.

As I considered topics for my milestone 50th blog in AIN, I decided to share stories behind real jet purchases showing how clients have made avoidable mistakes in their aircraft selections, regulatory structuring and implementation, and/or tax planning. Their errors cost them millions of dollars, disrupted their travel, or entangled them with the FAA. As I have said before: Do not embark on the journey to purchase an aircraft without a qualified aviation team supporting you.

A client wanted to buy a jet quickly (aircraft 1) so he could go on a fishing trip with his friends. In rushing to close the deal, the client sacrificed most of the standard aircraft due diligence. Within a few months, the client returned with a plan to buy a different aircraft (aircraft 2) because aircraft 1 apparently did not meet his needs. He eventually sold aircraft 1 at a loss of hundreds of thousands of dollars.

Astonishingly, a few months later, he returned again with a new plan to buy a different aircraft (aircraft 3), as aircraft 2 apparently did not work for him either. He eventually sold aircraft 2 at a significant loss. The third time was the charm, but at a high cost in money and time.

Perhaps an even worse scenario, early in the pandemic aircraft-buying frenzy, a technology CEO bought a large-cabin business jet for cash at an elevated price. Realizing the error of his ways, the CEO never flew the aircraft, though he owned it for a year and then needed to sell it.

Compounding this problem, he also needed to “refinance” the aircraft (extract its equity) to fund his nascent business. For at least six months after closing the loan, he paid a high interest rate on top of transaction costs and loan fees. When he sold the aircraft, he lost nearly $2 million, including $600,000 for undiscovered repairs found during a later pre-buy inspection and expenses to unwind the financing.

Read full article here

This article was originally published on Aviation International News (AIN) on March 13, 2026. 

Contact Information:                                                                                                                                                                                
 

Theresa C. Myers
theresa.c.myers@nafa.aero                                                      
410-571-1740   

Michael Cosby
mcosby@mcjetlaw.com
(417) 792-2922

NAFA Welcomes New Member: MC Jet Law

Edgewater, MD — February 6, 2026 - The National Aircraft Finance Association (NAFA) is proud to announce that MC Jet Law has joined its distinguished network of business and general aviation finance professionals.

NAFA President Bryan Byers welcomes MC Jet Law to the National Aircraft Finance Association. "We are pleased to welcome MC Jet Law to NAFA and their expertise that focus on aviation transactions, regulatory compliance and taxes,” said Bryan Byers.

"MC Jet Law is excited to become a member of the National Aircraft Finance Association," said Michael Cosby, Principal with MC Jet Law, LLC. "NAFA affords the firm an opportunity to connect with lenders and industry partners to provide our 20+ years of experience with aviation finance transactions."
 

About NAFA:  
The National Aircraft Finance Association (NAFA) is a professional association comprised of over 175 companies that promote the general welfare of aircraft finance for more than 50 years. Through collaboration, expertise, and educational content, NAFA provides the business and GA aircraft finance community opportunities for growth and betterment. 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 with 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. 

More information at https://www.nafa.aero.

NAFA member, Amanda Applegate, Managing Partner with Soar Aviation Law, shares her 2026 Outlook.

I realize that each year it takes me longer to recover from the fourth quarter and to begin thinking about the year to come. Every December I think it cannot possibly get more complicated or busier, and yet it does. In 2025, transactions were generally more complicated as a result of (1) tariff uncertainty and complications (impacting aircraft for the first time in 50 years), (2) the uncertainty surrounding bonus depreciation, and (3) the implementation of the One Big Beautiful Bill Act of 2025.

After reflecting on my personal experience in 2025 and analyzing key data, there is a noticeable trend as we move into 2026. Specifically, fractional programs and co-ownership programs are a larger percentage of the total market than ever before. This segment’s growth is outpacing other segments in private aviation.

Those purchasing into fractional programs and co-ownership structures are not just new entrants to private aviation. Instead, an increasing percentage of the fractional and co-ownership program participants are owners who have owned whole aircraft and are selling their aircraft to transition into fractional or co-ownership. In some cases, owners are selling part of the aircraft they already own to create a co-ownership structure. Additionally, we are seeing long-standing flight departments increase their dependence on fractional ownership or, in some cases, entirely replace the in-house flight department with fractional ownership interests. I think there are several key factors influencing the decision to move towards fractional and co-ownership.

Read full article here

This article was originally published by Soar Aviation Law on January 28, 2026.

NAFA member David G. Mayer with Shackelford, McKinley & Norton, LLP discusses the legal and tax issues regarding charitable flights.

Many find navigating the legal and tax issues are more than worth it for charity flights.

Fighting a serious health condition like cancer is horrendous, but it gets even worse when the cancer patient can't travel to see the right doctor—a doctor who may not be across town but across the country. Rising to this great need, many private aviation individuals and corporate owners, lessees, pilots, and operators—flight partners—provide a free flight on their aircraft to those who face the physical, emotional, medical, or financial burden of traveling long distances for specialized medical care.

Multiple “qualified organizations” (i.e. charities) facilitate these partner flights. Often called “charitable organizations,” in the U.S. they must satisfy the criteria under Section 501(c)(3) of the Internal Revenue Code (IRC) to be a tax-exempt entity. These charities, which have separate program models, include the Corporate Angel Network (CAN), for cancer patients; Angel Flight, for medical and disaster relief patients; and Patient AirLift Services (PALs), for medical patients.

CAN proudly announced last month at NBAA-BACE that it has coordinated 70,000 flights for cancer patients since its founding. I lost both of my grandfathers to cancer just as I was old enough to ask about their stories and some of my parents’ unspoken childhood exploits. Thinking of my grandfathers, who did not have today’s care options, I feel privileged and grateful to have become an “ambassador” for CAN.

When I shared my enthusiasm for this CAN role with friends and colleagues at NBAA-BACE, the conversation quickly shifted from their awareness of the charities to tax write-offs for partner flights, company liability risks, and FAA scrutiny of these flights and their pilots. In a discussion at Corporate Jet Investor Miami last week, an attendee said he “would love to pilot a mission” but did not know where to start.
 

Read full article here

This article was originally published by AIN on November 14, 2025.

Contact Information:

Theresa C. Myers
theresa.c.myers@nafa.aero
410-571-1740

Kevin Johnson
kevin.johnson@fmjlaw.com
952-995-9500

NAFA Welcomes New Member: Fafinski Mark & Johnson (FMJ Law)

Edgewater, MD — October 8, 2025 - The National Aircraft Finance Association (NAFA) is proud to announce that Fafinski Mark & Johnson (FMJ Law) has joined its distinguished network of business and general aviation finance professionals.

NAFA President Bryan Byers welcomes Fafinski Mark & Johnson (FMJ Law) to the National Aircraft Finance Association. "We are thrilled to have FMJ Law join our network, and we anticipate that their expertise in a variety of areas of Aviation practice will be immensely valuable in enhancing the knowledge and resources available to all NAFA members." 

Fafinski Mark & Johnson (FMJ Law) is a full-service commercial and business law firm based in Minnesota. FMJ Law provides sophisticated legal service with the power of a big firm, along with the responsiveness, compelling value, and agility of a small firm. FMJ’s Aviation Practice Group represents and advises aviation industry clients from around the world in a variety of areas, including Business Aviation, Commercial Aviation, Aviation Litigation, and Aviation M&A. FMJ’s aviation team is recognized nationally and internationally for their experience and insider knowledge of the aviation industry and all of the complexities involved with aircraft purchase and sale transactions, financing, and leasing.

“Fafinski Mark & Johnson is proud to join the National Aircraft Finance Association,” said Kevin Johnson, Chair of the Aviation Practice Group. “Our team has represented business aircraft buyers and seller, lenders, aircraft management companies, and brokers in numerous purchase, finance, and leasing transactions. We have been counseling to and opposite many NAFA members over the last 20 plus years, and we are pleased to finally join this excellent organization. NAFA’s mission to improve and facilitate the lending process to support aircraft buyers aligns perfectly with our commitment to delivering practical, business-focused legal solutions to the aviation industry, and we are excited to be a part of this community.”

About NAFA:  
The National Aircraft Finance Association (NAFA) is a professional association comprised of over 171 companies that promote the general welfare of aircraft finance for more than 50 years. Through collaboration, expertise, and educational content, NAFA provides the business and GA aircraft finance community opportunities for growth and betterment. 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 with 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. More information at https://www.nafa.aero.

While tax considerations are basically simpler for aircraft sellers than for aircraft buyers in the US, several important matters still require care and attention, as Chris Kjelgaard reports...

At a surface level, the tax considerations facing aircraft sellers in the United States are simpler than they are for aircraft buyers – not cheaper in terms of tax liabilities due, but simpler.

“From the seller’s viewpoint, for tax mitigation you look at the recapture of depreciation and what you need to do to address that,” Scott Burgess, Partner at Aviation Legal Group outlines.

In terms of tax liability arising from aircraft sales, the only thing US sellers must bear in mind is the amount of federal (and possibly state) income tax for which they will be liable on any capital gain they realize on selling their aircraft, he adds.

If the seller sells the aircraft but does not replace it, then they’re liable for the income tax due on the amount of capital gain they have realized.

But if they replace the aircraft they’ve sold with a different aircraft, then they will be able to use the depreciation amount available from the replacement purchase to offset some, or all, of the income tax which would have otherwise been payable.

For instance, if a seller bought an aircraft for $10m originally and during their ownership has depreciated it on their balance sheet to $5m, selling the aircraft for $9m, the seller is left with a $4m capital gain on which federal income tax would be due for that tax year, Burgess illustrates.

Depending on whether the seller is an individual or a corporation, the federal income tax rate on that $4m capital gain would vary from 37% to 21%. The level of state income tax due would vary depending on the state in which the corporation or individual is officially resident – and in some US states they would be liable for very little or no state income tax at all.

Read full article here

This article was originally published by AvBuyer on October 2, 2025.

NAFA member Amanda Applegate with Soar Aviation Law shares the EU-US Aircraft and Parts Tariff Update.

At the end of July, the United States and the European Union (EU) reached a provisional agreement to exempt aircraft and aircraft parts from U. S. tariffs.  While the deal was announced in the summer, formal guidance was not issued until September 24, 2025. The published guidance confirms that imports of qualifying European aerospace products are now eligible for zero-tariff treatment, retroactive to September 1, 2025. This retroactive application is significant.  Any entries made during September for EU-origin aircraft or parts where duties were paid should be reviewed.  If duties were assessed at the time of entry, importers are advised to file amendments to recover those payments.  Acting promptly will ensure full benefit from the duty-free treatment.

Read full article here

This article was originally published by Soar Aviation Law on October 2, 2025.