Sale of Corporate Aircraft Not a Good Use of Automaker Shareholder Money:

With Senators blasting the automakers about using corporate aircraft to transport their executives to Senate hearings, it will be interesting to see whether the automakers include the liquidation of their fleets in the economic plans due to Congress on December 4, 2008. The ironic thing about it is that if disposing of their fleets is part of their plans, the aircraft will be sold at tremendous losses in light of the current aircraft sales market resulting in multi-million dollar losses to shareholders. The loss of value to shareholders would likely finance the use of the aircraft for the next several years. The reasons for having corporate aircraft have not changed - executive security, immediate access to senior executives, increased productivity and an ability to reach areas of the country (or the world) not easily reached by commercial carriers. To be pressured into selling into a downward spiraling market in order to obtain government funding seems absurd at best.

Speaking Engagement

Mr. Lapayowker will be speaking at the 16th Annual Aircraft Registry Forum in Naples, Florida on February 9-10, 2009. It's a great opportunity to hear about developments in aircraft registration, financing, and transaction issues.

Mike, thanks for the well wishes. We are very happy at our new offices at Ft. Lauderdale Executive Airport

Wheels Up

Welcome to the Aero Law Critic blog, a blog of Stewart H. Lapayowker, P.A. As anyone involved in business aviation knows, the phrase "aviation law" is far too narrow a description for all that goes into a successful aircraft purchase, sale or financing transaction, so the scope of our blog is very broad and we welcome comments in any aviation area including FAA regulations, DOT regulations, federal tax, sales tax, International Registry, purchase and sale transactions, among others. We'll do our best to respond to your questions and comments and we welcome others to do the same in an effort to have a helpful and meaningful dialogue with those in the industry. We'll also use the blog to make you aware of issues in the industry worth noting.

Here's our first question for you: Do you think that accelerated depreciation (or "bonus") depreciation will or should be extended into 2009 if either McCaiin or Obama is elected to office? Will it have any impact on the industry?