The Baltic Air Charter Association (BACA) launched an escrow facility to provide a secure deposit for funds being paid in advance by customers for air charters worldwide. “Clients may be asked to pay a substantial deposit to secure a charter flight but there is little protection if one of the other parties–the broker, the agent or the aircraft operator–goes out of business before the flight takes place,” said BACA chairman Dick Gilbert. “The escrow account allows BACA brokers to offer their clients safeguarded advance payments for charter flights or programs.”
Securus Escrow has been established as a new specialist escrow service aimed at bringing greater piece of mind and transparency to aircraft transactions. The London-based company is supported by aviation law firm Gates & Partners and can provide separate escrow accounts for clients with a leading UK bank.
The payment dispute between Eclipse Aviation and Eclipse 500 empennage assembly supplier Hampson Aerospace seems to be resolved for now, according to a recent court filing. On November 13, Hampson filed a lawsuit against Eclipse Aviation in the New Mexico Second District Court for failing to pay “in accordance with the schedule and under the terms set out” in a contract.
A federal court in Texas recently ruled that a 1976 King Air C90 that crashed before its resale was finalized was not covered by insurance because the purchase was not yet complete when the accident occurred. According to a report in a recent issue of the Lawyer-Pilots Bar Association Journal, two days after a successful acceptance flight, the buyer wired funds to an escrow account with instructions to release the money to the seller.