Damalion Aviation Services
Our clients as successful entrepreneurs prefer to travel in comfort and style; making them the main group of clienteles that benefit from the private aviation market. While there is no shortage of business-class seats in commercial airlines, a large majority opt to charter private planes or obtain fractional ownership plans for long-term savings. Apart from convenience and comfort, high-net-worth individuals and their respective businesses prefer outright ownership under their name or through their corporations due to the efficiency and cost-effective benefits that aircraft ownership brings to the table. Having a busy schedule across multiple countries and time zones can is possible for individuals who own their own private aircraft.
At Damalion’s, our network of excellence provides a number of aviation services with the aim of assisting individuals with aircraft acquisition. To ensure a speedy and no-hassle process, it’s always best to start by choosing a reputable consulting team to guide you every step of the way. As aircrafts are valuable and unique assets, the steps involved in the acquisition process entails the application of various specialised skills and expert knowledge in areas, including finance, law, taxation, registration, and many more.
Damalion has extensive experience in the aviation service industry which in turn allows us to support clients with the utmost care and high level of professionalism. Using our extensive network, Damalion can provide with smooth and hassle-free aviation services in the most interesting jurisdictions.
Establishment and Administration of private jet Structures
Whether you are purchasing a brand-new or a used aircraft, or simply need to re-register an existing aviation asset, Damalion will act as a reliable liaison with aircraft brokers, dealers, and manufacturers every step of the way.
We have the industry know-how to recommend on a fitting registry based on your specific aircraft needs. Factors such as registration costs, ease of process, geographical location, and language are all considered in the set-up of private jet or corporate structures. Utilizing our extensive knowledge base, we leverage our extensive network in the industry to facilitate a speedy acquisition across strategic locations around the globe.
The aviation industry is subject to a host of regulations to safeguard the best interest of owners and customers alike. A clients’ choice of jet structure will depend on factors such as the type of aircraft, its primary function, VAT, and many more. One commonly used approach is registering private jets through a company to protect a client’s personal assets. Setting up specialized vehicles for aircraft ownership and leasing purposes. We will guide you through the complexities of establishing a solid operation on our clients’ behalf.
Aircraft Registration and Management
An aircraft must obtain a national identify, as evidence by its proof of registration with the official register office of the country from which the jet belongs. Similar to a citizen of a country, a nationality offers traffic rights contracted by the country in which an aircraft obtains its registration.
In essence, an aircraft must and can only be registered in one country. At Damalion’s, we will make sure to help you select the country which perfectly matches your needs and situation. An aircraft operator is a crucial element in an ownership structure in relation to the highly specific and intricate regulatory regimes prevailing in the aviation industry. Leveraging our vast connections in the aircraft industry, our Damalion consultants will be more than happy to introduce you to operators in various jurisdictions depending on our clients’ specific needs.
Corporate Aircraft Ownership
A large majority of corporate aircrafts are registered in the country where their respective owners are based or based on their principal headquarters. In recent years however, a growing number of “geographically mobile or flexible” owners have been running their business internationally are more likely to consider other jurisdictions for aircraft registration as their home base carry a host of disadvantages.
The number of countries launching their own registries for aircraft registration are continuously growing. Additionally, existing jurisdictions are expanding their eligibility criteria. While the registration process in various jurisdictions share similarities, each registry aims to deliver a unique feature or advantage to attract more individuals and companies over time.
Here are some factors that prospective clients need to consider when deciding as to which jurisdiction is most suitable for aircraft registration:
- Mortgage registration capabilities
- Eligibility to open accounts to financial institutions
- Associated registration costs
- Ease of set-up and customer service
- Potential tax benefits
- Recognition of technical standards
- Crew licensing process
- Minimum aircraft age eligibility
- Neutral registration marks
- Eligibility of chosen corporate structure
- Nationality and country of residence of owners
- Geographical location of the register
Here at Damalion’s, we offer a comprehensive range of financial administrative services in relation to aircraft registration:
·Corporate and private aircraft structure formation and registration
·Bookkeeping and legal accounts preparation
·Corporate secretarial services
·Import and export services
·Payroll and HR administration
Commercial Aircraft Operations
A number of private jets are partly used by the beneficial owner as commercial charter planes to third parties at times when they are not used for official reason. For an aircraft to be chartered to third parties, it must take the form of a management company holding an Air Operating Certificate (AOC). The benefit to opening a jet to charter opportunities is that beneficial owners can easily cover various operating costs using its generated charter fees. while avoiding empty legs, thus saving money in the long run.
Damalion prides itself for its vast network of operators and managers from various parts of the globe. We can facilitate the introduction of clients to AOC holders. Additionally, we have expertise in the set-up and licensing of corporate structures looking to obtain AOC from national authorities in various jurisdictions.
Aircraft Leasing and Financing
Individuals looking to buy a private jet for personal use rather than operating an AOC have limited options to choose from. One of the major concerns among private jet owners is VAT (value added tax) payments upon acquisition, increasing cash outflow in case the aircraft will only be used in the EU.
Damalion offers a solution for aircrafts for personal use in the EU. Our specialized solution is ideal for private jet owners and is primarily based on an operating lease agreement.
Leasing Requirements and Procedures
The operating lease agreement is between a company (lessor) and an individual or another company (lessee). A lessor will purchase an aircraft with the intention of implementing economic activity, that being leasing the aircraft to third parties. In this case, a lessor has the right to deduct the input VAT upon the purchase of an aircraft. After a successful purchase, a lessor may enter a lease agreement with the lessee regardless of its use. There are no minimum or maximum lease imposed on such an arrangement. Both parties are free to customize the terms based on their respective interests.
At Damalion’s, we perform a thorough analysis on behalf of clients who wish to enter a leasing agreement. In a leasing agreement, the associated VAT will be assessed at a rate of 18% on monthly or quarterly lease payments.
Main Advantages of Engaging in an Aircraft Leasing Agreement
·A clear and legal model that follows general EU principles and laws and the most recent European Court of judgment decisions.
·Operating aircraft leases is common in certain banks and financial institutions, making lending to jet owners simple and straightforward.
·VAT deferment due on acquisition or importation during the lease period as opposed to full VAT payment.
The current economic climate is challenging to say the least, but certain jurisdictions continue to enjoy growth in the aviation industry. Damalion has nurtured relationships with various reputable financial institutions, including banks, leasing companies, and investors in the aviation market. Sourcing adequate financial for aviation investments varies on a case-to-case basis accompanied with customized terms and conditions. Our Damalion experts will be more than delighted to help clients choose the best source of financing from vast network of institutions.
Lenders typically look at a myriad of factors, with each of them setting their own eligibility criteria. The factors include:
Maximum age of an aircraft
·Loan to value ratio
·Condition, whether brand new or second-hand
·Jurisdiction of aircraft registration
·Proposed nature of use and location of operation
·Nationality of the client
Damalion will seek top-notch brokerage and competitive estimates through our dedicated team of professionals. We offer direct links to underwriters based in various jurisdictions that are known for their upstanding delivery of service to private jet owners, operators, and other aviation related companies.
Aviation Insurance Coverage typically includes the following:
·Both new and used aircraft protection
·General aviation and home build flyers
·Kidnap and ransom insurance
A highly personalized insurance protection is further boosted by risk management and loss prevention solutions, thereby ensuring clients receive the necessary advice to mitigate the risk of a loss and assist them in enhance their own safety programs.
Aviation Accounting and Tax Services
The ownership and operation of an aircraft entails the management of crucial accounting and tax issues. This is to ensure full compliance with prevailing tax and bookkeeping requirements in EU jurisdictions.
Damalion has selected accredited professionals with many years of expertise and experience in the aviation industry, with a specialization in the areas of tax regimes that impact aircraft owners and operators. Whether you’re an aircraft operator or looking to own a private jet, we will assist you through the intricacies of the aviation sector. We have tax professionals that will meticulously guide you through complex tax issues and facilitate the collection and development of financial statements to efficiently manage cash flows, streamline internal and tax reporting requirements.
Our aircraft aviation accounting and tax services include:
·Accounting and bookkeeping
·Aircraft and flight department operation budgets
·Business and personal use expense allocation
·Flight department cash flow administration
·Partnership and fractional ownership agreements
·Strategic tax planning for owners and operators.
Aviation HR and Management
There are many HR management challenges for those looking to acquire a corporate or personal aircraft. From hiring an office staff, flight crews to the day-today operations, aircraft owners will need experts to keep their jets in perfect operating condition.
For clients who may not have the expertise in the business aspect of aircraft ownership, Damalion offers recommendations on HR and management services. Our experts will take over the selection of HR department and other administrative tasks.
We will pick an experienced HR team with in-depth understanding of the challenges in the aviation industry. Damalion will help form a team that are knowledgeable in handling compliance issues, insurance requirements, staffing, and training of personnel.
A reliable HR team formed by Damalion will expertly handle the insurance aspects of a client’s aviation business. From managing insurance concerns, identifying limits, liability coverage and workers’ compensation insurance. We will help secure programs that will ensure affordable insurance with the best coverage for you and your business.
Damalion also helps clients in finding an experienced and professionally trained flight crew and staff to ensure your success. We will help recruit highly competitive professionals from pilots and office staff that share your business goals and objectives.
Private or corporate aircraft ownership has many challenges, one of which is efficiently managing the staff that supports your business. We will develop a full-service human resource department that will take care of compliance issues, tax filings, and benefits management. They will provide ongoing HR support to assist you through many challenges. Our full-service HR consulting includes:
·Tax filing and compliance
·Recruitment and hiring
·Medical benefits administration
·Drug testing assistance and background checks
·Implementation of best practices, policies, tool kits, and employee manuals
·Workers’ compensation compliance.
Our skilled professionals help aircraft owners in the implementation of aviation compliance frameworks that meet ICAO (International Civil Aviation Organization) and European standards. As part of our genuine commitment of inspiring improvements in the aviation industry, we offer a wide range of services to support aviation authorities in various jurisdictions at every stage of the ICAO Global Safety Aviation Plan.
Damalion has selected accredited professionals to perform Aviation Safety services:
·Assessment and evaluation of aviation safety standards
·Guidance on effective safety management
·ICAO safety audit preparation
·Post ICAO audit support, capacity building, and corrective action plans
·Design and implementation of a Safety Management System
·Development and implementation of performance-based regulations
·Assistance in the creation of regulatory manuals
·Product compliance guidance and accreditation as per EASA and ICAO standards
Here at Damalion’s, our team of international aviation consultants will be influential in the successful set-up of our clients’ private jets or commercial aircrafts. With our professional aviation services, we guarantee your success of your aircraft experience. Contact us today to learn more about the services we provide.
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