2. A co-ownership agreement means an agreement whereby one of the registered owners of an aircraft employs and delivers the flight crew of that aircraft and that each of the other registered owners pays a portion of the royalties set out in the agreement between the owners. B. Types of agreements. There are three types of agreements in which certain compensatory fees are allowed. More recently, we have seen that commercial airlines prefer to legit their aircraft rather than use their own resources to finance the purchase of their fleet. Over the past two years, AirAsia, Malaysia`s largest low-cost airline, has sold much of its aircraft portfolio in two transactions — one to companies managed by BBAM Limited Partnership 20181 and, second, to private investment firm Castlelake LP in 20192. These aircraft were then re-leased to AirAsia Group airlines. With the rise of leasing companies in this region, the increase in the availability of rental aircraft and competitive rental prices, it is not surprising that many commercial airlines have chosen to lease their aircraft and preserve their resources to expand their activities in another way. Aircraft leasing has also enabled operators to quickly fill aircraft shortages or to take into account the seasonal increase in flight volume due to special circumstances such as fleet operations. The aviation industry was devastated by the Covid 19 pandemic. The pandemic has raised health fears around the world and, with the many travel restrictions imposed by many countries, passenger bookings have dropped dramatically. As a result, many commercial airlines have brought a large part of their fleet to Dener.
Airlines have taken drastic measures, such as implementing wage cuts, cancelling air routes and providing unpaid leave for staff to preserve their cash flow. Given the uncertainty about the recovery date of the sector, airlines are now facing difficult decisions about how to allocate their remaining reserves. Airlines that have leased aircraft would have significant rent payment obligations to landlords that they may not be able to hold while their fleet is on the ground. If the underwriters are unable to meet their payment obligations under their leases, this would make it more difficult to meet their financial obligations to their investors and financiers to the leasing companies. 13. FAR PART 91, SUBPART D. FAR No. 91.501 – 91.181 – imposes the operation of large, turbine-operated U.S. civilian aircraft and authorizes certain compensations and costs, without the need to certify FAR Parts 121, 125 or 135.