Aviation

Dow Lohnes offers its clients over 30 years of experience in the aviation community. We have extensive experience counseling commercial airlines and owners of business aircraft with respect to all aspects of the aviation industry, including regulatory counseling, corporate and commercial matters, the structuring of mergers, antitrust counseling ,aircraft acquisitions, tax advice, tax audits and litigation. Our attorneys are actively involved with industry trade associations such as the Airlines for America (formerly Air Transport Association), the National Business Aviation Association and the National Air Carriers Association.

Members of the firm’s Aviation group practice in federal and state courts throughout the country as well as before the Department of Transportation (DOT), the Federal Aviation Administration (FAA), the Department of Justice Antitrust Division (DOJ), the Internal Revenue Service (IRS), the Department of Homeland Security (DHS), the Transportation Security Administration (TSA) and the Department of State (DOS). Dow Lohnes’ Aviation practice counts among its clients, U.S. and foreign airlines, air taxis, aircraft owners, lessees and brokers, airframe and parts manufacturers, fixed-base operators, charter operators, and a tariff publishing company.

Please contact (202-776-2725) on regulatory and corporate matters; (202-776-2705), on corporate and commercial matters; (202-776-2036) on regulatory and antitrust counseling and competition issues; or (202-776-2391) on tax issues.

For a list of current issues that the Aviation Group is working on as of January 2012: 

1. 1. Extended Tarmac Delay rule 
2. 2. Flight and Duty Time rulemaking 
3. 3. Compliance with Full Fare Advertising Rules 
4. 4. Ownership of Part 133 operators 
5. 5. Ownership of Part 137 operators 
6. 6. Enforcement for on-demand air taxis 
7. 7. Enforcement for Disability Issues 
8. 8. International routes 
9. 9. Bilateral issues 
10. 10. NTSB incident and accident issues 
11. 11. Civil penalties DOT and FAA 
12. 12. Charter Contracts 
13. 13. Antitrust issues in the United States 
14. 14. Antitrust issues European Union 
15. 15. Slots 
16. 16. Response to civil subpoena in an antitrust case 
17. 17. Response to CID issued by Department of Justice 
18. 18. Contracts for services and products 
19. 19. Purchase of privately held airport 
20. 20. Foreign ownership of US air carrier 
21. 21. Ownership of US regulated operator by a foreign entity 
22. 22. Purchase, sale and lease of aircraft 
23. 23. Reauthorization of FAA 
24. 24. Baggage Rules 
25. 25. Ancillary fees 
26. 26. Tax issues 
27. 27. Air carrier codeshare 
28. 28. PFCs 
29. 29. 9-11 security fees 
30. 30. Hart-Scott Rodino Act (“HSR”) Compliance Advice and Filings 
31. 31. Foreign Corrupt Practices Act.32. International Pricing Counseling 
32. 32. Mediation of Dispute Between Air Carrier and Engine Maintenance Provider

Dow Lohnes’s Aviation practice has a demonstrated depth of experience that includes:

Economic Regulation (DOT)
We bring to our aviation clients vast experience in economic aviation transportation regulation. Our attorneys practiced before the Civil Aeronautics Board prior to “deregulation” and, with the transfer of economic regulatory functions to the DOT, Dow Lohnes has been active in all phases of DOT proceedings ranging from mergers and acquisitions to formal enforcement and certificate proceedings. Our work has included:

• licensing new startup carriers, such as, Morris Air, JetBlue Airways Corporation, SkyBus and Swift Air; 
• representing air carriers which have had their certificates noticed for revocation and/or revoked by the Department of Transportation; 
• obtaining operating authority to foreign countries for its clients in contested and uncontested proceedings; 
• licensing foreign air carriers for operations in the United States and internationally; and 
• representing clients before the DOT’s Office of Aviation Enforcement Proceedings in investigations of alleged violations.

Drawing on Dow Lohnes’ Litigation department and other practice groups within the firm, the Aviation group has actively participated in airline merger cases as well as offering on-going counsel in antitrust regulation. Our attorneys have successfully represented clients in the following matters: 

• representing a company jointly owned by several airlines with the requisite sensitivity to DOT, DOJ and EU jurisdiction, not only in the antitrust area, but also with respect to general business issues as well as tariff rules and regulations; 
• representing a recipient of a criminal grand jury subpoena in the Department of Justice’s air cargo price fixing investigation; and 
• representing clients in connection with both civil merger and non-merger investigations by the Department of Justice’s Antitrust Division.
• Slot allocation proceedings as well as slot auction proceedings before the Department of Transportation

Foreign Ownership & Control (DOT)
The requirement that a U.S. air carrier be a “citizen of the United States” continues to be an important aspect of an air carrier’s regulatory compliance program. Dow Lohnes has been on the cutting edge of this issue for years. For example, when one of our clients sought approval of a new financing plan, Dow Lohnes persuaded the DOT to make a major modification to the established standards for interpreting the citizenship requirement for U.S. carriers. Congressional interest in the issue has resulted in the firm engaging in extensive work before the relevant committees in both Houses of Congress. We represent both domestic and foreign interests with respect to this issue.

Corporate and Commercial
In addition to our representation of aircraft owners in standard corporate and commercial matters, we assist airlines in a broad range of commercial arrangements unique to the airline industry, such as flying agreements between regional and major airlines, ground handling agreements, maintenance agreements for aircraft, engines and parts, supply agreements, and software and other intellectual property development and licensing arrangements. In addition, we represent both buyers and sellers of aircraft, engines and parts, and we represent owners in financing their aircraft through traditional operating leases, leveraged leases and other financing structures.

Lobbying & Legislative Counseling Activities
Many of the Aviation group’s clients find that they are affected by actions of the United States Congress, state legislatures and the White House. For that reason, both domestic and foreign companies with commercial interests in the United States need to stay informed about U.S. legislative and regulatory developments. Dow Lohnes provides regular monitoring and interpretation of legislative and regulatory activities for its domestic and foreign clients so they can anticipate developments of U.S. policy affecting businesses.

Litigation (Administrative and Federal Court)
The Dow Lohnes Litigation group is fully integrated with the firm’s Aviation practice. The firm represents clients across the country in private disputes between air carriers and aviation companies in state courts, federal courts and commercial arbitrations as well as litigation arising from administrative proceedings at the Department of Transportation, Federal Aviation Administration, Transportation Security Administration and Department of Justice Antitrust Division.

The Federal Aviation Administration (FAA)
Dow Lohnes is able to leverage its considerable knowledge and experience when representing clients before the Federal Aviation Administration. Our attorneys include a licensed commercial, multiengine, instrument rated pilot. We have represented clients on a variety of aviation-related issues such as: 

• Part 121 operation issues 
• drug and alcohol testing matters; 
• enforcement proceedings; 
• engineering, unapproved parts and maintenance issues; 
• airport access problems; 
• Operating restrictions for part 135 operators; and 
• Aircraft management and operating agreements for general aviation clients.

We have also been active on the issue of slot availability at certain high density airports and the FAA’s regulation of these slots. In 2000, we helped JetBlue obtain the largest slot allocation for a new entrant carrier ever, facilitating the launch of the airline. We have continued to represent JetBlue in connection with its efforts to acquire slots, including at Ronald Reagan Washington National Airport where JetBlue initiated service in November 2010 and recently acquired slots at LaGuardia and Washington National.

Dow Lohnes has considerable experience in handling FAA enforcement and letter of investigation proceedings, including proceedings where the government has sought civil penalties exceeding $1,000,000. We have been very successful in either securing dismissal or reducing air carrier liability by significant amounts. A recent case resulted in the FAA withdrawing its enforcement action after completion of the FAA inspector’s deposition. We have represented carriers and individuals in investigations involving: 

• allegations of fraud and removal of officers of air carriers; 
• allegations of safety violations from maintenance performed on aircraft; 
• the Military Airlift Command; and 
• the first air carrier to be reinstated to full-use status from "non-use" status by the Department of Defense. 

Airlines & Aircraft Financing & Purchasing
Dow Lohnes has also been active in purchase negotiations, sale and leasing of aircraft and the financing of air carriers, as well as the purchase and sale of air carriers (Part 121, Part 135 and Part 145). We have pursued and obtained the financing for aircraft purchases, as well as structured those purchases and sales from a tax and financial standpoint to suit the particular needs of the client. We represent major and regional air carriers from their inception, including structuring and financing. Business counseling in all phases of the aviation industry, including review of proposed mergers and acquisitions, is also a strength of the Aviation Group. The business transactions the Aviation Group has handled include: 

• the start up of a new airline; 
• the acquisition of a regional airline from a major air carrier; 
• leveraged, operating and synthetic leases of aircraft; 
• maintenance agreements for aircraft, including heavy maintenance, line maintenance, power by the hour and other engine maintenance agreements, other component maintenance agreements and tire supply agreements; 
• the purchase and sale of aircraft; 
• ground handling agreements;  
• flying agreements between regional and major airlines; 
• air charter arrangements; 
• time sharing agreements; 
• fractional ownership arrangements; 
• management services agreements; and 
• like-kind exchanges and “reverse” like-kind exchanges.

Aircraft Taxation
Dow Lohnes’ Aviation practice has leading expertise on aviation taxation issues. Dow Lohnes attorneys frequently publish articles, present at conferences and prepare commentary for the Internal Revenue Service (IRS) on behalf of the National Business Aviation Association.

That expertise bas been developed from our lawyers’ experience on a wide variety of tax matters relating to aircraft, including representation of clients in tax controversies before the IRS. Specifically, we have advised clients regarding taxable fringe benefits under standard industry fare level (SIFL) rules, qualification for reduced SIFL rates due to business-oriented security concerns, business expense deductions, limitations on deductions for personal use, entertainment expense deduction limitations, deduction limitations on foreign travel, spousal travel deduction limitations, depreciation lives and methods, tax recordkeeping and reporting, federal transportation excise taxes, passive loss limitations, partnership and S corporation taxation, like-kind exchanges, state sales and use taxes, and securities law disclosures. We have advised clients with respect to these areas of tax law in a variety of transactions and business arrangements to meet our clients’ business needs including leases qualifying for resale exceptions for state sales and use tax purposes, “synthetic” leases, air charter arrangements, aircraft management agreements, time sharing agreements, joint ownership arrangements, fractional ownership arrangements, management services agreements, like-kind exchanges and “reverse” like-kind exchanges.

Department of State
We also represent carriers and other interests in bilateral and multilateral negotiations of aviation matters between the United States and various foreign countries. Projects involving bilateral issues include: 

• operating rights to Australia, China, Japan , New Zealand; 
• charter rights to Japan; and 
• bilateral negotiation issues before the Department of State and Department of Transportation dealing with such countries as Australia, Canada, France, Japan, Korea, New Zealand and the Philippines.

Airports
Our Aviation Practice has also represented airports before the FAA, concerning issues that range from certification of airports, federal funding and grant issues, essential air service issues, to decertification of federally funded airports.

Environment
Dow Lohnes has also represented airports and air carriers on environmental issues associated with airports, airport construction and decertification. For example, all new carrier applications require environmental assessments for issuance of operating specifications from the FAA. Our attorneys, while employed by the FAA, were involved in the first environmental lawsuits filed against the federal government over aircraft noise at federally funded airports, as well as, litigation over the use of federal funds for the development of airports brought under the National Environmental Policy Act. On behalf of several airline clients, we were active before the FAA in the phase out of Stage 1 aircraft and the associated litigation in the United States Courts of Appeals and were engaged in the phase out of Stage 2 aircraft, including processing exemption requests before the FAA.

Other Matters
Other aviation-related matters handled by our lawyers include work with the United States Postal Service on air carrier mail contract issues, aviation matters with the United States Customs Service, the Immigration and Naturalization Service and the Department of Commerce.