BUYING AND SELLING AIRCRAFT

BUYING AND SELLING AIRCRAFT

Civil aviation refers to the use of aviation for sporting or commercial activities, excluding military purposes. Activities such as gliding, paragliding, skydiving, hang gliding, commercial passenger and cargo transportation, and aerial photography fall under the scope of sporting and civil aviation, and in Türkiye, this supervisory role is undertaken by the General Directorate of Civil Aviation. According to the Turkish Civil Aviation Law, an "aircraft" is defined as any vehicle capable of taking off and flying in the air, and certain conditions must be met for an aircraft to be used. First, the aircraft must be registered in a country's aircraft registry. It is also mandatory that the registered call sign be written on the aircraft. Furthermore, the aircraft must be under the license of a valid operating company, and the provisions of the Law of Obligations apply to the purchase and sale of these aircraft.

There is no provision preventing contracts for the sale of aircraft from being drawn up before a notary public. For aircraft sold domestically, the original or a copy of the contract, notarized before a notary public, must be submitted to the General Directorate of Civil Aviation in cases of sale, transfer, or assignment of aircraft registered in the Turkish Civil Aircraft Registry. This requirement is important for the official and valid recording of domestic aircraft sales transactions.
There are certain points to consider for the registration of aircraft imported from abroad. Firstly, these aircraft must be purchased through a written contract between the parties, and this contract must be submitted to the General Directorate of Civil Aviation before the final or temporary import procedures are completed at the customs point. This contract must also include the original document proving payment of the stamp duty required for the "technical suitability for import" certificate.
For aircraft purchased in accordance with the acquisition method, the following documents are required: the original contract, the original bill of sale, a notarized translation if it is in a language other than Turkish, the original signature circulars of the parties who signed the contract, and the original documents showing that the parties who signed the contract were authorized. These documents must be submitted to the General Directorate of Civil Aviation with an Apostille certification. Additionally, a document certifying that the aircraft is "Airworthy" must be submitted, confirming the aircraft's airworthiness. Submitting complete and accurate documents is crucial for the aircraft's registration.
For aircraft imported through purchase, the following documents must be submitted to the General Directorate of Civil Aviation:
- Registration Application Form
- A petition signed by the aircraft owner or a person with a notarized power of attorney -
The original definitive import letter from the Customs Directorate addressed to the General Directorate of Civil Aviation
- Deregistration certificate
- Export certificate.
-The relevant page of the flight manual showing the maximum take-off weight. (AFM Page)
-“Sales Agreement” and “Transfer Deed” and other matters (the agreement mentioned above)
-Customs Declaration of the aircraft.
-Front and side photographs showing the registration mark and flag on the aircraft.
-Copy of the Certificate of Airworthiness.
-“Service Fee” as stated in the Service Tariff published by the DGCA (Directorate General

Used aircraft purchase and sale agreements are less detailed than new aircraft purchase and sale agreements, and are generally shorter and more concise, often omitting clauses such as liabilities and general operating compensation. There are fewer standard contracts compared to new aircraft purchase and sale agreements, and sometimes these transactions can be completed with just a sales contract.

According to Article 66 of the Turkish Civil Aviation Law, a written contract is mandatory and sufficient for the establishment, transfer, and assignment of ownership and other real rights over all or a portion of an aircraft. Contracts relating to assignment are not valid unless they are made in writing. Therefore, a written contract is necessary for acquiring ownership of an aircraft or establishing any other real right over it. As understood from the provision of the law, no other formal requirements are sought besides the written requirement. There is no obligation for aircraft purchase and sale contracts to be drawn up in the presence of a notary. Although notarization is sometimes requested in practice, this notarization only concerns whether the signatures on the contract were made by authorized and competent persons and is not a condition for the validity of aircraft purchase and sale contracts.

Detailed preparation of aircraft purchase and sale agreements is of paramount importance. The agreement must clearly identify the parties and specify the registered owner of the aircraft as the seller. It is beneficial to include all details of the aircraft being sold in the agreement. Furthermore, the purchase/sale price and payment methods must be clearly stated. The agreement should specify which documents the seller must prepare, sign, and deliver to the buyer, the documents that must be present on the aircraft and provided to the buyer, and matters related to the preliminary inspection to be carried out by the buyer. Information regarding the transfer of ownership and delivery of the aircraft must also be included in the agreement; provisions regarding guarantees and penalties should also be added. Provisions regarding insurance should also be specified in the agreement. If the aircraft was purchased from or sold to a country other than Turkey, since it is an international sale, the agreement must include a provision specifying which country's laws apply. Additionally, it is necessary to specify which court will have jurisdiction in case of a dispute arising after the sale. It is beneficial for the parties to choose a court where they can resolve disputes in the simplest and fastest way.

Law Faculty Student

Nehle HAMZAOĞLU