Block Time
When purchasing “block time,” an aircraft user typically does not purchase an ownership interest in the subject aircraft. Rather, the aircraft owner guarantees a certain hourly usage within a given period of time. The sale and purchase of block time use of an aircraft can be beneficial for both the aircraft owner and the aircraft user, when properly structured. However, an improperly structured transaction can result in inadvertent “commercial operation” of the subject aircraft, risking insurance coverage and potentially exposing the flight crew, owner and/or user to FAA enforcement action, including pilot certificate suspension or revocation and/or assessment of civil penalties.
Joint-Use
Improperly structured or documented joint use of an aircraft can be deemed “commercial” use by the FAA, jeopardizing your insurance coverage and subjecting the flight crew and aircraft owner/operator to sanctions imposed by the FAA. Our airplane contract attorneys will ensure that your joint use arrangement is properly structured and documented.