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.
David G. Mayer is a member of the global Aviation Practice Group at Shackelford, McKinley & Norton in Dallas, which handles private aircraft matters, including regulatory compliance, tax planning, purchases, sales, leasing and financing, risk management, insurance, aircraft management and operations, hangar leasing, and related corporate work. Mayer frequently represents corporations and high- and ultra-high-net worth individuals and other aircraft owners, flight departments, lessees, borrowers, operators, sellers, purchasers, corporations and managers, as well as lessors and lenders. He can be contacted at [email protected].
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