Business Aviation Transactions

/Overview

Aviation stakeholders are a small and tailored group with legal needs that call for responsive, personalized counsel. Owners, operators, family offices, companies, lenders, manufacturers, and other aviation stakeholders rely on Nixon Peabody to help them navigate business jet ownership and use, from buying to flying to selling. We consult on the legal, financial, regulatory, operational, commercial, and reputational considerations that make owning a private or corporate aircraft possible.

Our aviation team brings together transactional, finance, corporate, regulatory, and litigation capabilities, because we understand an aircraft is both a valuable asset and an operating business concern. 

Because business-aircraft purchases and sale transactions often involve multiple parties, compressed timelines, and technical documentation, we work closely with clients’ outside advisors to identify risks, clarify responsibilities, and move transactions toward efficient closings. We draw from a deep bench of industry relationships to connect clients with the right aviation specialists and counterparties to ensure that every element of the transaction is handled with care.

With a practical, attentive, confidential, and personal approach to our work, our team remains a trusted aviation law advisor and resource long after the initial matter concludes. We make complex issues understandable, remain readily available as decisions arise, and tailor our advice to how each client intends to own, finance, lease, or operate the aircraft, wherever in the world it is based or flown.

/Representative experience

• VistaJet: Advised on the acquisition of 56 new Bombardier Global aircraft, with options to purchase 86 additional aircraft. The transaction included pre-delivery financing facilitated through the Export-Import Bank of the United States and Export Development Canada, as well as post-delivery permanent financing. With a list price of $7.8 billion, the transaction was the largest order placed with any aircraft manufacturer in business aviation history.
• Two on demand private jet companies: Served as US counsel to two on-demand private jet companies on pre-delivery financing arrangements for fleet aircraft facilitated through Export Development Canada, as well as related post-delivery term loan and lease financing arrangements.
• Private bank and family office clients: Advised on pre-delivery financing, post-delivery permanent financing, and leasing arrangements for business aircraft.
• Aircraft lender: Assisted with financing for numerous business aircraft, including domestic and international transactions involving aircraft registered in the United Arab Emirates and the Isle of Man.
• Original Equipment Manufacturer (OEM): Advised on financing arrangements and other corporate and transactional matters.
• Entities and high net-worth individuals: Counseled on the purchase, sale, financing, and leasing of business aircraft.
• Financial institution: Represented client, in its capacity as owner trustee, in connection with the formation of an FAA citizenship trust and the negotiation of related financing documentation.

/Legal Services

• Aircraft purchases and sales: Representing buyers and sellers in transactions involving new and pre-owned business jets and turboprops, from letter of intent through closing, including pre-purchase inspection coordination, title review, and documentation.
• Aircraft financing and secured lending: Advising owners, operators, and lenders on financing structures, loan agreements, and secured lending arrangements, including FAA and international registry filings.
• Leases and aircraft-use arrangements: Structuring and negotiating dry leases, wet leases, interchange agreements, and other arrangements that govern how clients access or make available aircraft.
• Fractional aircraft interests: Counseling buyers and sellers of fractional shares in business aircraft programs, including review of program agreements and provider terms.
• Ownership and operating structures: Advising on entity formation and maintenance for aircraft ownership, with attention to the tax and liability considerations that shape structure selection.
• Aircraft management and operational agreements: Drafting and negotiating agreements with management companies, charter operators, and flight departments to define responsibilities and commercial terms for day-to-day aircraft operations.
• Manufacturer, operator, and service-provider agreements: Reviewing and negotiating purchase agreements with manufacturers, maintenance contracts, and other agreements with third-party providers across the aviation services ecosystem.
• Regulatory and risk management: Guiding clients through FAA, DOT, and international regulatory requirements, and helping identify and address legal and operational risks associated with aircraft ownership and use.
• Aviation disputes: Representing clients in disputes arising from aircraft transactions, operations, or commercial relationships, including breach of contract, title claims, and actions against operators or service providers.