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Any Corporate Changes? Do they Impact the Jet?

By October 20, 2021September 1st, 2022No Comments
Corporate Changes Impact Jet

Will any Corporate Changes Occur?  Do they Impact the Jet?  Are you Sure?

Many businesses restructure their entity, its ownership and management from time to time. This may occur for tax or economic reasons and the jet is usually not a factor when making the restructuring decision.

Entity Changes May Affect Jet Registration & Jet Operations

An entity change may affect the aircraft’s registration status. An aircraft may be registered in the United States only when owned by a citizen of the United States. An entity that adds a non-US citizen as its president or which increases the voting interest held by a foreign entity from 20% to 40% no longer satisfies the FAA’s definition of citizen of the United States which must be met to have a validly registered aircraft.

Corporate change may also affect the aircraft’s operations. The restructuring activity may change the employment of the crew and affect the compliance of the operations with the FARs.

Negative Impact of Entity Changes on the Jet

Aviation regulations are not intuitive and are frequently misunderstood even by those in the aviation industry. Obtaining the advice of an attorney experienced in working with business jets will help a company remain in compliance with the aviation regulations as your business changes.

Please contact Jetstream Aviation Law if we can assist you with addressing your aviation issues.

Michelle M. Wade is a partner with the law firm of Jetstream Aviation Law and counsels clients on the acquisition, financing and  operation of corporate jets operated under Part 91 and Part 135 of the Federal Aviation Regulations. Jetstream Aviation Law can be found at

The information provided here is not legal advice and does not purport to be a substitute for advice of counsel on any specific matter. For legal advice, you should consult with an attorney concerning your specific situation.

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