What are the legal implications of aircraft leasing?
Aircraft leasing is a contractual arrangement where one party, the lessor, lends an aircraft to a second party, the lessee. The lessee pays an agreed-upon fee in return for use of the aircraft. Aircraft leasing is popular because it helps to spread the financial burden of aircraft ownership. While the lessee is able to use the aircraft, the lessor retains ownership which reduces the lessee’s tax and insurance liabilities. In Delaware, aircraft leasing is governed by the General Assembly’s Aviation Code, Title 18, Chapter 69. Under this code, aircraft leasing agreements must be written and signed by both the lessor and the lessee. The agreement must include specific information such as the aircraft model and registration number, the total amount due for renting, the dates of the rental period, and detailed information about the aircraft, such as its age and condition. The aircraft must also meet certain safety standards. These include providing the lessee with the latest version of the aircraft’s flight manual and having its airworthiness certificate up to date. A lessee must also obtain insurance for the aircraft in order to cover any damages that may occur during the rental period. If the lessee violates any of the terms of the aircraft leasing agreement, they may be liable for damages or face other legal repercussions. It is important for lessees to read and understand all of the terms of the aircraft lease agreement before signing it. This will help to ensure that all parties are operating within the law.
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