Protect Your Aviation Interests With Our Michigan Aircraft Lease Attorneys
Aircraft leasing is a highly valuable tool for businesses and individuals. It provides necessary access to aviation assets without the burden of full ownership. However, these arrangements involve significant regulatory risk. Errors in documentation can lead to Federal Aviation Administration (FAA) penalties.
At Driggers, Schultz & Herbst, we simplify the complexities of drafting and managing leases. We are a preeminent aviation law firm serving clients in the Detroit metro area and all of the United States. Our aviation attorneys apply their knowledge of aviation and business law to every lease agreement, giving you the certainty that you need.
Aircraft Leasing For Operations And Income
An aircraft lease agreement allows a business or individual to operate an aircraft without the capital commitment of full ownership. Conversely, owners can generate significant income by leasing their aircraft to others. However, these arrangements must comply with strict FAA regulations.
We help you use leases to meet critical regulatory compliance standards. Our versatile legal team drafts sound, legally enforceable aircraft lease agreements. Whether you are receiving an income stream or seeking access to an aircraft, we are here to uphold your best interests in all transactions.
How Is An Aircraft Lease Determination Determined?
A lease determination centers on who maintains operational control. The determination affects required pilot certifications and how the flight must be logged. It also impacts liability exposure. An improper determination can lead to significant penalties. Our aircraft lease lawyers will analyze your situation thoroughly to ensure your structure satisfies the Federal Aviation Regulations (FARs).
What Exactly Are The Operational Restrictions When It Comes To Aircraft Leases?
The operational restrictions on a leased aircraft depend on which party maintains operational control and whether the flight involves compensation or hire. This determines which set of FARs apply:
- Part 91: Noncommercial, general aviation operations. These flights cannot carry anyone for compensation or hire. The lessee, not the lessor, hires and compensates the flight crew. The aircraft operation must be incidental to the lessee’s core business.
- Part 135: Commercial operations such as charter flights. These have significantly stricter requirements for maintenance, pilot training and rest. They also have higher standards for pilot qualifications.
Your lease must clearly define the permitted use of the aircraft. When an owner leases out an aircraft for income, the contract must strictly prohibit unapproved commercial activity. An aviation lawyer can structure the terms of your agreement to avoid accidental violations.
What Is The Difference Between A Wet Lease And A Dry Lease?
The basic differences are:
- Dry lease: Does not include any crew, fuel, insurance or maintenance from the lessor. It is only for the aircraft.
- Wet lease: Includes the aircraft the crew and often fuel or maintenance.
Each type of lease has different regulations that affect it. Part 91 usually covers dry leases, while Part 135 usually covers wet leases.
Your Next Step: Contact Our Aviation Lawyer Team
Driggers, Schultz & Herbst has the aircraft lease attorneys you need. Contact us today for a consultation. Please send us an email or call to reach our law office in Troy.