Even if the type of aircraft is appropriate, the aircraft concerned may not be in good condition or at a fair price. Until an aircraft has undergone a thorough pre-purchase inspection by an independent mechanic who has no share in the sale or not- there are still some doubts about its condition. For example, if the airport operator rents a plane to someone else who wants to sell, it is in the operator`s best interest to find another party to buy and re-lease it. Under these conditions, the operator cannot provide the inexperienced student or private pilot with the best source of information on the procedure for purchasing an aircraft. If you are a flight school, several legal problems can develop during Desonstaus. Is your company responsible for the actions of your flight instructors? Maybe, but it depends on your relationship (employees or independent contractors). In this sense, have you misclassified your flight instructors as independent contractors? If so, your company could face significant fines and penalties (see also our Employment – HR section). The key to protecting your flight school is an audit by experienced aviation law advisors… When was your last time settled? At the same time, many small airport companies, flight schools and charter operations – and some larger – also have financial problems in the current environment.
Most banks want the operator to have at least 15 to 20 percent equity in all the aircraft it funds, and these down payments can be very difficult for the typical underfunded aviation business. So the operator goes looking for someone else to buy the plane and rent it to bring them back to them. Some pilots want the advantage of owning their own aircraft, even though they know they won`t fly it enough to justify it. Others simply do not have the financial means to make the purchase, unless the aircraft can generate some kind of guaranteed income. It is the “leaseback” that was born. While everyone`s personal situation is different, here are just a few of the reasons to put a plane on the rental return. A leaseback is actually a marketing agreement. As part of this agreement, American Flight Schools acts as an asset manager. The aircraft belongs to the individual, while american Flight Schools is responsible for the commercialization of the aircraft, the introduction of qualified and well-trained pilots, the management of all financial transactions, the coordination of maintenance and the assurance that the aircraft meets all regulatory requirements. Few operators will be a guarantee in terms of the number of hours the plane will fly each month. If there is an oral commitment from the operator, make sure it is included in the contract.
There is a good chance that this is a stumbling block. Because if the operator has to pay you, if the plane has not flown, he might as well own the plane himself. This lack of any guarantee makes the buyback of leasing attractive to operators, as they can let planes sit at times when activity is slow at no cost to themselves. When an operator of FBO or flight school shows a particular aircraft to a student and pushes him to buy it and return to the operator, the student is already far behind the Powercurve (but probably not realized).