EMBRY RIDDLE ASCI404 6.2 - Aircraft Transactions

Scenario 1

You are in the market to buy an aircraft and have identified one that appears that it would meet your needs and is in your price range.

How will you:

• determine who owns the aircraft,
• identify all outstanding security interests in the aircraft, and
• determine the condition of the aircraft?

You are the manager of an aircraft dealership.

A customer approaches one of your sales people. The customer is the owner of a successful photography business, but not a pilot. The customer states that the business needs to buy an airplane for high-altitude digital photo mapping, and she needs the salesman’s advice to select: a suitable aircraft for the mission, which requires:

* capability to climb to 24,000 feet,
* then maintain that altitude plus or minus 100 feet and
* follow a pre-programmed ground track within 50 feet of centerline for at least 4 hours
* at a groundspeed of no less than 250 knots,
* then have at least 1 hour’s fuel remaining for descent and return to base.

If the sales person sells the customer an airplane for that mission, what warranties would be implied? Explain.

Could the dealership successfully disclaim those warranties in the contract of sale? Explain.

Scenario 3

You are a commercial pilot, certified flight instructor, and aircraft owner.

You do not hold an FAA Part 135 air taxi and commercial operator certificate. You’ve been earning some income by providing flight instruction to others, in your aircraft, but are looking for other money-making opportunities. At a social event, one of your student pilots introduces you to his boss, who says he’s heard great things about you. He says he has no interest in learning to fly, but wants to know if he could hire you to fly him on business trips from time to time in your aircraft.

Could you legally rent or lease your aircraft to him, then have him hire you part-time to fly it? Explain.