2025 August

Thinking of buying an aircraft outside the USA? Foreign transactions might seem similar to domestic deals, but cross-border deals bring their own “contractual quirks.”

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As we’ve covered in earlier installments of this six-part series, buyers of foreign aircraft face added layers of complexity.

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If you miss a key detail, you could risk stalling the deal just as you’re ready to close. Let’s take a closer look at some of the biggest contractual needs to cover the quirks of overseas transactions.

Delivery Conditions

Every transaction should clearly state what the buyer will receive for the purchase price. These “delivery conditions” typically cover items such as maintenance status, logbooks, damage history, airworthiness directives and service bulletins.

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For international transactions, be sure to specify the language of the logbooks. If they aren’t in English, require translations to confirm completion of all required maintenance.

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You’ll also want to include a clause on the Export Certificate of Airworthiness and identify who pays for it. State whether the certificate will be issued with or without any exceptions, including installed equipment or modifications allowed under the current aircraft registry but not permitted by the future registry.

Tariffs/Customs

As you know, tariffs are a hot topic (check out my first article about them). The purchase agreement should clearly state who is responsible for any customs or tariff costs, which can be hefty.

A good contract will also account for potential changes. When this series on international transactions started, tariffs on EU-manufactured planes were on the horizon. They became effective shortly thereafter, casting confusion on the market.

As of this writing, these tariffs on EU-manufactured aircraft are now back to zero. But what if you go under contract when there are no tariffs, and the rules change halfway through the transaction? Without a good contract to account for potential changes, the parties could be stuck in a transaction that is economically unfeasible.

Choice of Law / Forum Selection

Every purchase agreement, whether domestic or international, should include a “choice of law and forum selection clause. This selection determines what law will apply to the contract, and where the fight will play out in the event of a legal dispute.

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While laws and convenience vary from state to state, the differences are amplified between countries.

Before agreeing to a foreign law, it’s important to know the differences in how the contract will be interpreted and enforced (or not enforced). This requires hiring an attorney who’s well-versed in the local law. It can be daunting to convince a seller from Country A to accept laws from Country B to govern their multimillion-dollar asset sale.

Once you negotiate which law will govern the transaction, where will it be enforced? The legal system of each country will vary wildly, both in quality and efficiency. One potential neutral and efficient option is the Hague Court of Arbitration in Aviation. This organization has aviation experts to help hear and resolve disputes. It has expedited processes to determine the outcomes of cases, which could save years in the court system of any particular country.

“Know Your Customer” Rules

Most aircraft sellers and buyers value privacy. Foreign owners, especially, often protect their identities by forming companies in jurisdictions like the Cayman Islands, Isle of Man and San Marino.

If your contract doesn’t require the seller to provide “Know Your Customer” (KYC) details to satisfy your bank and the escrow agent, the deal could stall.

Without a KYC clause, banks may refuse to fund the purchase and/or escrow agents may decline to handle the transaction. In the U.S., banks and other institutions are enforcing tighter KYC rules, with even greater scrutiny applied to foreign transactions.

Closing Procedures

Here in the U.S., closing procedures are fairly standardized. But you will typically need to modify them for foreign transactions.

Be sure to account for the lag in timing with funds flowing from one country to another, and who bears the risk of loss in the interim. Also, account for completing the deregistration process from the foreign registry so the plane becomes eligible for registration in the U.S.

Navigating Contractual Quirks in Foreign Transactions 

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Foreign transactions and imports can provide great opportunities and value, since many buyers feel too intimidated to take on the challenge.

That said, every transaction should include an experienced team that includes an aircraft broker, aviation attorney and tax professional. Having a solid team on your side is imperative, especially those who know how to navigate the unique quirks of an international deal.

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Part 1: Navigating Aircraft Import & Tariff Customs

Part 2: Importing Aircraft: Aircraft Registration and Deregistration

Part 3: Airworthiness: How to Get Your Imported Aircraft Ready to Fly

Part 4: How to Balance Taxes Between Multiple Jurisdictions

Part 5: Logistics: Where to Inspect the Plane and Complete Closing?

Part 6: Contractual Quirks of Foreign Transactions

This article is not intended, nor should it be construed or relied upon, as legal advice. The comments, recommendations, and analysis expressed in this article are those of the individual author, John Farrish, are purely informational. This article does not create an attorney-client relationship between you and the author or his law firm. If specific legal information is needed, each person should retain and consult an attorney with knowledge of the subject matter.

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Handing AI your aviation brand without training is like giving a rookie pilot the keys to a G600 without type training.

It’s a risky move that can cause your sales and marketing to crash and burn.

The good news is that tools like ChatGPT and Perplexity can help you save time and work smarter. First, though, you must train AI to think like you do before trusting it with your content strategy.

So, how can you use AI effectively? For starters, it can help you create stronger content to sell aircraft, fill charter legs and attract management clients. But to do that, you need the right inputs and the right prompts.

These first steps can mean the difference between consistent results and costly mistakes. Think of the following recommendations as your aviation brand’s AI Flight Manual.

3 Must-Have AI Files for Your Aviation Brand

1. Your Voice File

Your aviation brand’s personality in digital form. Inputs should include:

• Who you are: company story, team bios, FBO location, aviation roots
• What you stand for: mission, values, service philosophy
• How you sound: clear, exact, lifestyle-forward, or compliance-driven

Example: A Part 135 charter operator with a strong safety culture should sound authoritative and precise, not casual or slang-filled. Consistency strengthens your aviation brand in every customer interaction.

2. Your Client Profile

This is the “type rating” for your ideal customer. Include these descriptors to create your personas:

• Aspirations: buying their first jet, cutting downtime, improving operations
• Pain points: resale uncertainty, complex regulations, unclear broker value
• Misconceptions: charter revenue offsets ownership, cheapest is best
• Objections: trust, transparency, turnaround concerns

When AI understands your client as well as you do, it can create content that connects with buyers, aircraft owners or hangar tenants. This connection, in turn, will help your marketing stand out in a crowded market.

3. Your Offer and Process Map

These are your sale playbook inputs. Include:

• What you sell: acquisitions, charter, management, upgrades, hangars
• How you sell: from inquiry to LOI to close
• What sets you apart: market intel, global reach, in-house maintenance
• Preferred CTA: book a consult, request listings, schedule a flight

When AI understands your offer, it can create sales copy, drip email campaigns and proposals that convert. Just remember to always edit and refine the style so it sounds human. The value of that first draft is the time it saves while keeping your aviation brand consistent, persuasive and competitive.

Action Step

Write each file in plain language. Save as:

• [CompanyName]_AI_Voice.pdf
• [CompanyName]_AI_Client.pdf
• [CompanyName]_AI_Offer.pdf

Note: When using ChatGPT, upload the right files and give it a specific mission that reflects your aviation brand’s style and goals.

3 Aviation-Specific AI Prompts to Use Now

Aircraft Sales Listing Prompt
“Use the voice and client profile from these PDFs to write a compelling sales listing for an off-market Gulfstream G550 targeting a Part 91 corporate flight department. Include up to five highlights, pedigree and a call to action.”

1. Charter Sales Email Prompt
   “Use the voice and client profile from these PDFs to write a persuasive email to a fractional aircraft owner frustrated by peak-day limits. Position our Part 135 charter program as a flexible solution. End with a 15-minute call invite.”
   
   
2. LinkedIn Thought Leadership Prompt
   “Use the voice and client profile from these PDFs to write a LinkedIn post for an aircraft management company. No emojis and no em dashes. Cover three common mistakes new owners make and show how we prevent them. Keep it approachable with a soft CTA.”

Train AI Like Your Best Co-Pilot

In business aviation, trust and accuracy matter. That’s why AI will never replace your sales team or your marketing brain.

Give it poor inputs, and it can damage your aviation brand instead of building it. Train it well, and AI becomes a dependable co-pilot, working nonstop to keep your brand sharp, consistent and competitive.

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As the aviation insurance market softens in most sectors, I’m often asked the same question: What drives the cost of an aviation insurance premium?
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A policy’s pricing is shaped by more than just aircraft value. Among many factors, a premium is impacted by current market conditions, pilot experience and your claims history. But some aspects may surprise aircraft owners.

Following are five key factors that play a role in what you pay.
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Aviation Insurance Premium Pricing: 5 Key Factors

1. The Market and Competition

In today’s softening marketplace, there are even more insurers are competing for your policy. Over the past 18 months, we’ve seen four new aviation underwriting carriers enter the aviation insurance market. This increase in capacity drives competition, often resulting in lower premium rates and broader coverage.

The shift is most pronounced in the under-three-million-dollar hull value sector, where both legacy and new carriers are working aggressively to win policies.
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2. Asset Type and Insured Hull Value

Rising aircraft prices mean higher insured values, which directly affect your aviation insurance premium. Hull insurance, which covers physical damage, is typically the largest portion of a policy.

For example, hull insurance often makes up 60 to 80 percent of the annual premium because most claims involve physical damage. Liability premiums, covering injury or property damage to third parties, are usually lower since such claims occur less often.
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3. Pilot Experience

The Pilot in Command’s experience significantly impacts the aviation insurance premium. In light piston aircraft, a low-time pilot may pay more than triple what a highly qualified pilot pays.

In single-pilot jets, especially high-value models like the Phenom 300E, PC-24 and CJ3+/4, limited experience can mean higher premiums or coverage restrictions. Sometimes, single-pilot coverage isn’t even available in the first policy year for new jet operators.
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4. Claims History

A lesser-known factor that impacts policy premiums is the aircraft owner’s claims history, especially if a claim was filed in the last three to five years.

Premiums often depend on the loss history, including:

• Recency of the loss
• Size of the claim
• Circumstances surrounding the loss
  

It’s a good idea to discuss these details with your broker before shopping for a policy. Full transparency helps underwriters assess the risk accurately and can prevent unwelcome surprises.
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5. Miscellaneous Factors

Several other considerations can influence an aviation insurance premium. These include whether the aircraft is hangared or tied outside and the demographics of the base airport, such as whether it has a paved or unimproved strip.

The state where the airport is located can also affect pricing. Some insurers will not write policies for grass runways or certain geographic areas, which can limit coverage options.

In closing, your aviation insurance premium pricing will reflect market forces, aircraft details, pilot qualifications and claims history. Knowing how each factor affects your policy can help you prepare and position yourself for the best possible rate.

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As you know, the One Big Beautiful Bill Act (OBBBA) was signed into law on July 4^th, 2025.  CPAs across the country, myself included, have speculated about this legislation for months, and now we finally have our answers.  
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I’ve since worked my way through the entire bill, which is jam-packed with changes. They cover updates to SNAP programs, the Armed Forces, space programs, energy sources, student funding and homeland security. However, the largest section of OBBBA focuses on taxes. 

The 330+-page bill introduces many updates and changes to the current tax law.  While it adds new concepts, it also extends several provisions from the 2018 Tax Cuts and Jobs Act (TCJA) provisions that were set to expire this year.
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One of the most notable is 100% bonus depreciation. 
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This highly anticipated addition to the OBBBA was a win for businesses and a valuable opportunity to defer taxes for prospective aircraft owners who use their aircraft for business.

I’ve written about bonus depreciation before and the qualifications for this deduction, so I will not go into detail here. 
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That said, I do want to highlight a few key points for the new laws surrounding 100% bonus depreciation:

• 100% bonus depreciation applies to business assets acquired after January 19, 2025.
• If you had a signed contract prior to this date and took (or are taking) delivery after this date, the rules are a bit more complicated. I encourage you to consult your tax advisor.
• You may opt into the previously available 40% bonus depreciation for 2025 instead of 100%.

As with any tax deduction or depreciable asset, the aircraft must be used for business purposes and meet certain criteria to qualify. If you plan to purchase an aircraft or have acquired one this year, be sure to discuss your options with your aviation tax advisor.

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When Labor Day hits, it feels like the aviation industry goes full throttle. From September through December—the “ber” months—transactions stack up and aircraft financing requests flood in.

The race to close before year-end can be chaotic. For aircraft owners, the difference between stress and success often comes down to preparation.

The good news? We’ve got a few proven ways to make financing smooth, predictable and ready for closing day.

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Here are four rules to keep you ahead of the rush:

Rule 1: Get Pre-approved Early

Underwriting consists of two things: the financials and the collateral. To us, there’s no harm in approving the loan amount so we can complete the financial analysis and discussion in advance of the pressures of closing.

Rule 2: Start the Conversation Now

Even if you’d prefer to wait until you have an aircraft in mind, please don’t wait until the last minute to engage a lender. Starting the conversation early gives you an edge when the right opportunity comes.

Rule 3: Keep Communication Flowing

A smooth approval process involves both lender and applicant. Be sure to provide a complete financial package and answer questions as they arise. Lenders want to help secure financing but need the support of the applicant to get the approval across the finish line.

Rule 4: Ask Questions
Don’t let the faster tempo of year-end closings keep you from ensuring you are comfortable. Ultimately this is your purchase, so understand every detail before you sign.

The “ber” months will be here before you know it, and the pace in aviation will only get faster. Lenders, brokers and buyers will all be racing toward year-end. If you want to close before December 31, don’t wait for the rush. Start your financing process now so you can move through approvals with confidence and be ready when the perfect aircraft appears.

Enjoy the rest of your summer, and we look forward to supporting a strong finish to 2025!

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"We missed our numbers this quarter."
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When I hear this from aviation business owners, the excuses fly in as if on autopilot: economic headwinds, a big deal stalled, an upcoming election, or some other external excuse.

But if we’re being honest, those aren’t the real culprits.

The real problem underneath? Shared accountability. 

When accountability is shared, it’s often absent. 

In other words, if everyone is responsible, no one is. 
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In business aviation, where execution must be precise, this kind of ambiguity quietly kills performance.

It’s not about bad intentions. It’s about blurred lines of ownership. That’s what causes well-meaning teams to drift off course, even when the vision is clear.

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The Group Accountability Trap

I see this across aircraft brokers, operators and service providers. A task gets dropped because three people thought someone else had it. Or worse, two people jump in, duplicate effort, and burn time and trust in the process.

Here’s what happens when tasks are assigned to a group, not a person. You get:

• No clear ownership:  Delays, confusion, or double work

• Finger-pointing: Morale drops and energy leaks

• Inconsistent results: Unmet expectations and missed targets

Simply put, unclear accountability erodes execution and culture. And, it impacts the team whether you’re prepping for an audit, finalizing a client delivery, or responding to an AOG.
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How to Shift Without Losing Team Cohesion

This isn’t about isolation or going solo. It’s about clarity of ownership within a team. Think of CRM where high-performing flight crews never guess who’s flying. Everyone has a role and there is a positive transfer of control. 

Business team should operate the same way.

Here’s the fix:

1. Define the “One”

Every outcome needs one owner. Not a department. Not “sales.” One name. One call sign. One PIC.

2. Clarify What “Done” Looks Like

Define success and don’t assume people know. Get the proposal done” might mean drafted, final, delivered, or signed. Spell it out.

3. Set Deadlines and Check-Ins:

Assign a due date and review it weekly. Create habit-forming accountability systems or, better yet, implement a proven system that ensures accountability.

4. Recognize and Celebrate Follow-Through

Spotlight those who own and deliver. That’s how cultures shift from passive compliance to proactive ownership.
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What Happens When You Nail Accountability

When ownership is clear and reinforced, momentum builds. You’ll see:

• Higher productivity: No more chasing updates or decoding silence.

• Stronger execution: People go “all-in” when they’re on the hook.

• Better morale: Pride comes with ownership, and teams start playing to win.

And when something slips—and it will—the response shifts from hiding to raising a hand early.

That’s the mark of a mature team: not that they never struggle, but that they address issues before they become crises.
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One Last Thing: Accountability Isn’t Isolation

Don’t confuse ownership with solo performance. Think of it like an A&P signing off on a logbook entry. They're accountable, but they still rely on the team.

If something looks wrong or the procedure wasn’t followed, they speak up fast.

That’s what you want in your team: individual accountability, backed by collective support.

In aviation and in business, your systems either reinforce ownership or weaken it. If your metrics are off target, don’t just look at the scoreboard. Look at how you’re assigning ownership.

Because, as we say in EOS®, “If everybody owns it, nobody does.”

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