commercial aircraft lease

helinas · Post by **helinas** » Mon Oct 03, 2005 7:52 am

Hi guys,

If I "ABC" onwed a twin engine prop aircraft and leased it to "BCD" company, could "BCD" go and lease it to "CDE" company without "ABC" knowing anything?

Just curious.

Helinas

arctic navigator · Post by **arctic navigator** » Mon Oct 03, 2005 8:14 am

Normally it is written in the lease that you can not do this without the owners knowledge... There are of course ways around this... If BCD was to do some sort of "contract" flying for CDE with some sort of wet lease agreement it would probably be ok... It all comes back to having custody and control of the aircraft for the term of the lease.

helinas · Post by **helinas** » Mon Oct 03, 2005 8:43 am

If "BCD" is awarded a contract to fly for money but does not have an Operating Certificate but his buddy "CDE" has one and "CDE" has custody and control of the aircraft who is going to get "paid" for the work "BCD" that leased it to "CDE" or "CDE" that has the operating certificate?

thanks, any help on this topic would be appreciated.

Helinas

Airtids · Post by **Airtids** » Mon Oct 03, 2005 9:28 am

Holy $hit, man!! Why don't you (or wohever you're inquiring on behalf of) just do the work and get a friggin' license and AOC? What's with all the cloak and dagger stuff? If you were leasing one of my planes, and subleasing it to another company without my knowledge (possibly even competing against me), and I found out, I'd have that machine back in my hangar within 6 hours. You would have stranded the company you were subleasing to, they would have stranded their customers, and everyone ends up looking bad. Who are you, Michael Leblanc? We've been reading these strange requests from you for months. You could have completed everything nice and legal and on the up and up by now!

Something to think about: If anything unfortunate were to happen, and everything was not well within the lines (I's dotted and T's crossed), you better believe TC, and even worse your insurance company and everyone's lawyers, would be going through things with a fine tooth comb and are very likely to find a way to violate/refuse coverage/sue. Your choice really, but aviation today is not really an industry you can get away with playing fast and loose.

pushyboss · Post by **pushyboss** » Mon Oct 03, 2005 10:08 am

Typically an aircraft lease will not allow you as the lessee to sub-lease the aircraft to another party. If the lease does allow the sub-lease to occur you can be guaranteed that in the lease it will state that any such sub-lease will be done with the written approval of the aircraft owner. Rarely, if ever, would that approval be given. If you were to lease the aircraft without the knowledge of the owner, you most likely would be in violation of the contract. I would advise the aircraft owner to immediately recall the aircraft, cancel the lease, and depending upon damages (not specifically aircraft damages), begin legal action against the lessee.

ice ice baby · Post by **ice ice baby** » Mon Oct 03, 2005 6:45 pm

It sounds like BCD is just a broker. People will pay for brokerage services. Find clients with planes not been used and people looking to lease planes. Then everything would be legal, it would LOOK LEGITE to ABC, CDE, and Transport. Hopefully everyone makes money (but this is aviation afterall) and lives happily ever after.