Case Studies
J.S. Held Acquires Technorm, Québec’s Leading Forensic, Building Safety & Compliance Experts
Read MoreThe client had been operating a fleet of regional aircraft domestically under various short-term leases from foreign lessor companies that the client controlled. Due to the client’s business growth, these aircraft were gradually phased out of their operations and replaced by larger aircraft. However, the client faced a significant tax liability related to the temporary import of the aircraft if they were not sold out of the country and exported within a short period.
We had been providing the client with regular market updates related to the value of the aircraft type to assist with decisions regarding the disposition of the fleet. Based on the commentary contained within these updates, the client reached out to enquire further about the current market for the aircraft and how best to implement a plan for the exit from the fleet.
We provided the client with a view of the marketability and expected pricing of each aircraft based on the individual condition, together with an indication of the time to sell the assets successfully. Regarding the seven aircraft under review, we identified three that could be sold “as-is” and a further aircraft that could be disposed of if various components were swapped from the remaining unsellable assets or installed from the client’s stock of parts.
We also provided advice on the parts market for breaking/dismantling the remaining aircraft so that the high-value major components could be removed and sold to maximize the value of the assets. Purchasers were found for the four operational aircraft, and a consignment agreement was entered into for the major components with a United States-based parts supplier. Selling the aircraft and disposing of the parts outside of Colombia avoided substantially all of the potential tax liability.
Hamish P. Davidson
Managing Director
+1 689 223 5380
[email protected]
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