To answer a few questions shot my way:
1. I have not seen a CS/CA owner contract in years but I would be very surprised if they are not assignable in one form or another.
2. In what I have heard of the deal DAC is getting paid by CA to assume the contracts and the liabilities associated with those aircraft management contracts. The money flow is to DAC from CA, not from DAC to CA.
As an aside the Flex and CA deals look like a great way to acquire owners/customers and increase the critical mass to be more efficient. Numbers I have been told by many in the industry is that 90%-95% of new business is poached from other frax or charter and that the small remainder is "new to private aviation". So "they are not minting too many new owners". Using the old adage that "it is easier to keep a customer than get a new one", this looks like a great way to get a huge block of new owners and get the overall DAC/FO operation to a larger level (if that is where the efficiencies are).
1. I have not seen a CS/CA owner contract in years but I would be very surprised if they are not assignable in one form or another.
2. In what I have heard of the deal DAC is getting paid by CA to assume the contracts and the liabilities associated with those aircraft management contracts. The money flow is to DAC from CA, not from DAC to CA.
As an aside the Flex and CA deals look like a great way to acquire owners/customers and increase the critical mass to be more efficient. Numbers I have been told by many in the industry is that 90%-95% of new business is poached from other frax or charter and that the small remainder is "new to private aviation". So "they are not minting too many new owners". Using the old adage that "it is easier to keep a customer than get a new one", this looks like a great way to get a huge block of new owners and get the overall DAC/FO operation to a larger level (if that is where the efficiencies are).
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