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From letter of intent to closing
We structure purchases and sales of business jets, helicopters and commercial aircraft, including across borders. The sequence is standardised; the pitfalls lie in aligning the purchase agreement, the technical inspection, the escrow arrangement and the registration.
- Aircraft purchase agreements, in international deals as an Aircraft Purchase Agreement (APA)
- Pre-purchase inspection and completion through an escrow account
- Registration and transfer of title, including deregistration from the previous register
- Notarial recording and certification in our own notarial office, where the structure requires it
Leasing, operatorship and operational use
We draft dry leases, wet leases, ACMI and operator agreements in line with EASA requirements and allocate duties, liability and limits of use expressly. Who counts as the operator determines certification, insurance and responsibility in the event of a loss.
- Dry leases with return conditions, maintenance reserves and insurance provisions
- Wet lease and ACMI arrangements, including the allocation of operational responsibility
- Operator models for owners, family offices and operators
- The line between commercial and non-commercial operation
Finance structures for buyers, banks and lessors
We structure asset-backed loans, finance leases, operating leases and sale-and-lease-back arrangements. The finance documents must fit the purchase agreement and the security package, otherwise the funds are not available at closing.
- Loan and lease documentation, aligned with the purchase agreement
- Sale-and-lease-back to release tied-up capital
- Coordination with our practice area Banking Law
- Support through to drawdown at closing
Hull, war risk and liability cover
We negotiate settlement directly with underwriters and loss adjusters and pursue claims for hull damage, liability and loss of use. The first step matters most: what is documented in the first few days determines the amount later paid.
- Hull claims including ground damage, on a hull all-risk basis
- Loss of use and diminution in value
- Recourse against maintenance organisations and third parties, by way of subrogation
- Coordination with our practice area Insurance Law
Registers, pledges and international security
We create and register security over aircraft. In Germany the registered pledge under the Act on Rights in Aircraft is the usual route; internationally, mortgages, IDERAs and security under the Cape Town Convention are added.
- Registered pledge over the aircraft, entered at the Local Court of Braunschweig
- Mortgages under foreign law, for example New York law
- International interests under the Cape Town Convention, where the states involved are contracting states
- Deposit of an irrevocable de-registration and export request authorisation (IDERA)
Employment, training and crew rostering
We draft employment and assignment contracts for flight crew, from type ratings and the repayment of training costs to deployment across several operating certificates. The employment law review is carried out by our practice area Employment Law.
- Employment contracts for pilots and cabin crew
- Repayment clauses for type ratings and training bonds, and their limits
- Rostering, flight duty periods and crew sharing across several companies
- Cross-border employment and the question of the applicable law
Answers to the most important questions
Can’t find your question here? Please get in touch! We’ll usually get back to you within two working days.
What does it cost to have an aircraft purchase handled?
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Fees follow either the statutory scale based on the value of the matter or a separate agreement on hourly or fixed rates. On transactions a fee agreement is customary, because the work relates more closely to the steps of the process than to the purchase price. We set out the range with our initial assessment.
What is the difference between a dry lease and a wet lease?
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Under a dry lease only the aircraft is provided, and the lessee supplies crew, maintenance and insurance. Under a wet lease the lessor provides the aircraft together with crew, maintenance and insurance, often referred to as ACMI. The choice determines who counts as the operator and who carries the regulatory responsibility.
How long does an aircraft purchase take from letter of intent to closing?
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Four to twelve weeks is usual. The largest block is the pre-purchase inspection, followed by finance, insurance and the change of registration. Delays typically arise where findings from the inspection have to be renegotiated.
How is an aircraft used as security for a loan in Germany?
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Through a registered pledge under the Act on Rights in Aircraft. It is entered in the register of pledges over aircraft kept at the Local Court of Braunschweig and requires the aircraft to be entered in the German aircraft register. Where an aircraft operates internationally, security under foreign law is usually added.
What should be done first after hull damage?
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Notify the insurer without delay and record the condition before any work begins. What is secured in the first few days by way of photographs, findings and operating data determines both the amount later paid and the prospects of a recourse claim against the maintenance organisation.
Can a pilot be required to repay training costs?
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Yes, within narrow limits. The clause must match the tie-in period to the costs, taper the amount over time and must not apply where the employer is responsible for the ending of the contract. Clauses without that tapering generally do not survive review.
How we work at activelaw
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Your information
You explain your situation to us, and we’ll review your documents. We’ll provide you with an initial assessment of your case as soon as possible.
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Our promise
We advise and represent you in all legal matters until your case has been successfully resolved.
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Your opportunities
Our experts will advise you on your chances of success and the specific options available in your case.



