Unlike real estate lenders, most aircraft lenders don’t require title insurance, so airplane buyers rarely even know about it, let alone purchase it. That can be a big mistake.
Bankruptcy hearings for Avantair held last month in Tampa, Fla., brought some needed good news for share owners of the 56 ex-Avantair Piaggio Avantis who are hoping to return their aircraft to the sky. During one of the hearings, the Italian aircraft manufacturer unveiled a Service Bulletin (SB) that provides a path for owners of these Avantis to regain their airworthiness certificates, which were revoked by the FAA in late July and August.
Owners of fractional shares in Piaggio Avanti twin turboprops operated by Avantair are trying to take possession of their aircraft in the wake of the August 16 court hearing that put the Clearwater, Fla.-based company into involuntary bankruptcy.
As prospects dim for Avantair, the Clearwater, Fla.-based Piaggio Avanti turboprop fractional ownership program, concerns about its future are taking a back seat to questions about how owners will recover their aircraft. Among recent developments:
Members of the Florida Aviation Trades Association learned recently that the Third District Court (Miami) has issued a ruling that will significantly affect the recourse available to the maintenance industry when faced with a non-paying customer.
Previously, a repair facility could put a lien on the aircraft when it perceived the customer would not pay the bill regardless of who was in possession of the aircraft.
Beginning March 1, aircraft purchasers, sellers and lenders in the U.S. will be required to comply with the Cape Town Convention on International Interests in Mobile Equipment and the Aircraft Protocol. Covered under the treaty are airplanes certified with eight or more total seats and helicopters certified with at least five seats and with engines rated at 550 horsepower or more.