Aviation Law and Aircraft Litigation Attorneys

Texas Lawyers for Aircraft Transactions, Litigation, and FAA Compliance

Our attorneys deal with legal and regulatory issues affecting aircraft operations, ownership and transactions, leasing, charters, maintenance, and more.

Safeguard your aviation business with legal counsel from Hendershot Cowart P.C. We'll assist you in navigating complex legal issues, ensuring compliance for you or your company, and protecting your assets.

On This Page:

• Who We Represent
• What Our Team Can Do For You
• Effective Contracts for Aircraft Owners, Lessors, and Operators
• Aircraft Transactions & Corporate Formations
• FAA Investigation and Enforcement Action Defense
• Speak With An Aviation Lawyer Today
• Frequently Asked Questions

Reach out to us today at (713) 909-7323.

• Air carriers and commercial operators
• Airport operators
• Air charter services
• Charter operators
• Charter brokers
• Individuals or companies who own or lease a private jet
• Pilot schools
• Travel clubs

• Draft, review, and litigate breaches of aviation-related contracts, including maintenance agreements, aircraft management and charter agreements, aircraft refurbishment agreements, pilot agreements, wet and dry leases, and interchange agreements.
• Provide legal counsel with respect to choosing and forming aviation-related entities and ownership structures in compliance with Federal Aviation Administration (FAA) regulations and federal and state law.
• Review corporate policies and operations related to company and personal use of a company-owned aircraft for compliance with FAA and Internal Revenue Code regulations.
• Defend your rights and interests in an FAA investigation or enforcement action over alleged improper aircraft maintenance, medical disqualification, illegal aircraft charters, and more.
• Help resolve tax audits of corporate jet deductions or other tax controversies.

Call (713) 909-7323 now to request an initial consultation with our aviation law attorneys.

Aviation contracts affect the day-to-day operations, expenses, cost-sharing, storage, maintenance, and management of an aircraft. It is important that agreements are unambiguous, clearly define roles and obligations, and are legally binding and enforceable in court.

Our attorneys have experience drafting, reviewing, and enforcing aviation agreements, including:

• Aviation service level agreements
• Operating agreements
• Aviation leasing contracts (wet and dry leases)
• Employment and crew contracts
• Interchange agreements
• Purchase agreements

Our aviation law team can also promptly respond to breach of contract allegations or to enforce the terms of a contract through mediation, litigation, or arbitration, as needed. As a law firm with a robust commercial litigation team, we routinely defend and pursue breach of contract claims.

As business lawyers with aviation law experience (and as lessors of an aircraft ourselves), our aviation transactional attorneys bring extensive experience with the sale, purchase, or lease of private jets and other aircraft.

• We can help you explore ownership options, including new vs. pre-owned aircraft or fractional ownership.
• Guide you through the purchase process from the letter of intent and title and lien searches to the aircraft purchase agreement and due diligence.
• Help you register the aircraft with the FAA and ensure that documentation and regulatory requirements are met after the closing.
• If you plan to create a separate entity to operate the aircraft, our attorneys can counsel you on entity selection and set-up, and structure the operations in compliance with the FAA and the Internal Revenue Service (IRS).

If you or your company receive a Letter of Investigation from the FAA alleging improper aircraft maintenance, illegal charter operations, IFR clearance deviations, or other violation, contact an aviation attorney for assistance as soon as possible.

Here are some ways our aviation attorneys can help:

• Represent you in communications: The attorney can act as your intermediary, communicating with the FAA investigators on your behalf. This can help prevent mistakes that could worsen your situation since any response can be used as evidence against you.
• Analyze the allegations: The attorney can review the allegations against you and gather any evidence that may be relevant to your case. They can also begin to build a defense strategy based on potential defenses and legal arguments available to you.
• Negotiate with the FAA: If the FAA has proposed penalties or other sanctions, the attorney can negotiate with the investigators to try to reach a favorable settlement. They may be able to negotiate a lower penalty or a more favorable resolution.
• Prepare for an administrative hearing: If the FAA decides to pursue formal charges against you, the attorney can help you prepare for an administrative hearing. This involves gathering evidence, preparing witnesses, and developing a legal strategy.
• Represent you in court: If the FAA's decision is appealed to a court, the attorney can represent you in court. This involves presenting your case to a judge and arguing for a favorable ruling.

The aviation industry provides unique convenience, transportation solutions, and opportunities to individuals and businesses. It also involves significant risk and expense. Put an experienced aviation law team on your side to protect you and your companies from liability, compliance issues, and contract disputes. As an entity with its own aircraft lease, we understand just how important securing your aviation-related investment is to your livelihood and peace of mind.

Contact us today.

What is the difference between a dry lease and a wet lease?

The main difference between a dry lease and a wet lease is who provides the crew and who has operational control of the aircraft.

• A dry lease involves the lessor transferring the aircraft to the lessee without any additional services. The lessee is responsible for all operational costs, including fuel, maintenance, insurance, crew salaries, and airport fees. The lessee has total operational control of the flight. 
• A wet lease involves the lessor providing both the aircraft and the crew to the lessee. The lessor has operational control of the flight and is responsible for maintenance, insurance, and crew salaries. Wet leases offer a turnkey solution for lessees who want air transportation services without the hassle of managing these operational aspects.

What are common legal risks for an aircraft lessee?

Common legal risks for aircraft lessees include:

• Breach of contract: The lessor may breach the lease agreement by failing to deliver the aircraft, providing a defective aircraft, or failing to maintain the aircraft properly.
• Force majeure events: Unexpected events such as natural disasters, wars, or pandemics can disrupt the lease agreement and lead to disputes over the lessor's obligations.
• Regulatory compliance: The lessee must comply with a variety of regulations, including aviation safety regulations, export controls, and tax laws.
• Insurance claims: The lessee may need to file insurance claims in the event of damage to the aircraft or injuries to passengers or crew.
• Maintenance disputes: Disagreements may arise between the lessor and lessee regarding maintenance responsibilities, costs, and quality of repairs.
• Hidden defects: The aircraft may have hidden defects that were not disclosed to the lessee at the time of the lease.
• Early termination: The lessee may face penalties or other consequences if they need to terminate the lease agreement early.

To mitigate these risks, aircraft lessees should work with legal counsel to carefully review and understand their lease agreements, obtain appropriate insurance coverage, and protect their interests.

Are there any specific FAA regulations or requirements that I need to be aware of as a private jet lessee?

As a private jet lessee, you should be familiar with the following operational rules as laid out in the FAA’s Federal Aviation Regulations (FAR) General Operating and Flight Rules, commonly referred to as the “non-commercial rules”:

• The aircraft being operated must be in an airworthy condition; 
• The pilot in command of an aircraft is directly responsible for, and is the final authority as to, the operation of that aircraft;
• The operations are being conducted within the confines of the technical performance requirements of that aircraft; and
• The pilots are obeying the appropriate rules and instructions regarding air traffic control, along with other requirements.

Additionally, the FAA regulates contracts for the leasing of large aircraft (over 12,500 lbs. MTOW). Truth-in-leasing requirements (FAR § 91.23) stipulate that: 

• The lease must be in writing; 
• The lease must contain certain specific truth-in-leasing language spelled out in the regulation; 
• A copy of the lease must be carried on board and be made available for review upon request; 
• The lessee must mail a copy of the lease to the FAA within 24 hours of its execution; and 
• The lessee must notify the FAA of the first flight under that lease at least 48 hours before takeoff, among other requirements.

Consult with an aviation attorney for more specific guidance on your contractual and regulatory responsibilities as an aircraft lessee.

What is a joint ownership agreement?

According to FAR rules, joint ownership agreement means “an arrangement whereby one of the registered joint owners of an airplane employs and furnishes the flight crew for that airplane and each of the registered joint owners pays a share of the charge specified in the agreement.”

Key elements typically included in a joint ownership agreement:

• Ownership shares: The percentage of ownership each individual or entity holds in the aircraft.
• Usage rights: How the aircraft will be shared, including flight hours, priority, and limitations.
• Cost allocation: How costs such as maintenance, fuel, insurance, and hangar fees will be divided among the owners.
• Decision-making process: How decisions about the aircraft will be made, such as maintenance, repairs, and upgrades.
• Dispute resolution: Mechanisms for resolving disputes among the owners, such as arbitration or mediation.
• Exit strategy: Procedures for an owner to sell their share or leave the ownership group.
• Tax implications: How tax liabilities will be allocated among the owners.

It's crucial to have a well-drafted joint ownership agreement to avoid misunderstandings and potential disputes. Consulting with an aviation attorney can help ensure that the agreement adequately addresses the unique needs and circumstances of the joint owners.

What is the difference between joint ownership and fractional ownership?

The primary distinction between joint and fractional ownership is that a fractional ownership arrangement involves a management company that is responsible for decision-making and management of the aircraft.

Fractional owners purchase a share of the aircraft and pay monthly fees to the management company to cover maintenance, insurance, and other operating costs. Joint owners have direct control over the aircraft, subject to the joint ownership agreement. 

What is an interchange agreement?

An interchange agreement outlines the terms and conditions under which multiple aircraft owners agree to exchange or share their aircraft. Interchange agreements allow private aircraft owners to enjoy the benefits of multiple aircraft without the full financial commitment of owning each one. However, it's important to have a well-drafted agreement that addresses all potential issues and protects the interests of each participating owner.

What are the potential consequences of an FAA investigation?

The outcome of an investigation often depends on the severity of the alleged violation and the evidence gathered. Here are some potential consequences:   

• Loss of License or Certificate: If an individual is found to have violated FAA regulations, they may lose their pilot's license, airframe and powerplant mechanic certificate, or other aviation-related certifications.   
• Loss of Operating Authority: The FAA can revoke or suspend an airline's operating certificate or a maintenance facility's approval if they are found to be in violation of regulations.
• Civil Penalties: The FAA can impose monetary penalties on individuals or businesses who violate regulations.
• Criminal Charges: In some cases, serious violations can lead to criminal charges, resulting in fines, imprisonment, or both. FAA violations that could result in criminal charges include intentionally falsifying aviation records, fraudulently obtaining a pilot’s license, drug or alcohol violations, or serious violations of safety regulations.

If you or your business is facing an FAA investigation, seek legal counsel to understand your rights and options.