Please ensure Javascript is enabled for purposes of website accessibility

Blog

What is the purpose of an aircraft Letter of Intent?


 

Transcript:

Once a buyer and seller have struck a deal for an aircraft purchase, they will often want to move quickly ahead with the pre-purchase inspection. Too quickly, to first degree on a comprehensive aircraft sale agreement. A letter of intent is useful to bridge this gap and serves two functions. First, to memorialize the general terms of the deal. Second, to divvy up the transaction costs the parties incur in the meantime. For example, who pays for the inspection? Who pays to move the plane to the inspection facility? Does this allocation change if one party or the other backs out of the deal? This second portion of the letter should be written as legally binding from the moment the letter is signed. Whether the first portion is binding can vary and is up to the parties in a particular transaction.

Advocate Covers:

Our Results

Service Agreements

Small Piston Comprehensive Service Agreement

For Piston Aircraft with a gross takeoff weight of less than 6,000 lbs and costing less than $500,000 – $3,000 per year

Large Piston Comprehensive Service Agreement

For Piston Aircraft with a gross takeoff weight of more than 6,000 lbs or costing more than $500,000 – $5,000 per year

Small Turboprop Comprehensive Service Agreement

For Turboprop Aircraft with a gross takeoff weight of less than 12,500 lbs, and not subject to “truth in leasing” – $7,500 per year

Our Team

Meet the Attorneys

Jonathan Levy

Shareholder

Suzanne Meiners-Levy

Shareholder

Joseph Quackenbush

Managing Attorney

Letisha Bivins

Managing Attorney

Do you love aircraft? Work with our team of professionals!

Contact Us

Get in Touch
With Us

Get in Touch