Purchasing a 135 company

[FlyingToIST]

Our partners are thinking about purchasing a Part 135 company that had some not so good incidence rates for last 5 years. (I would call it accidents actually).

My questions are :
- o we accept the liability when we purchse the company?
- Are we required to go through recertification when we go through the purchase or is that only done during the purchase of the Part 135 certificate but not the company?

Our attorney is looking into this as well, but i'd like to get the opinion from the people who have experienced the similar things.


Thanks..

 

[JPAustin]

Don't quote me, but to my best recollection:

1- I think the liabilities may hold up in civil court if something arose concerning one of the "incidents"

2- I think that since you are purchasing an existing certificate within 120 days of suspension of operations, there is a "less stringent", if you will, certification process that will pretty much reference the company's history and, once recertified, erase those as far as the ticket and Feds are concerned.

Anyone wanna blow me out of the water here?

 

[JPAustin]

Oh yes, I also forgot that since so long as the certificate is within 120 days of suspension, you don't go to the bottom of the heap of paperwork.

 

[stupidpilot]

If its AJI you'd better RUN!!!!!!!!!!!!!!!!

 

[jegermeister]

Be careful if you plan on moving operations. I worked for a guy that bought a twin and 135 certificate in Oklahoma. He move it to Florida only to find out the the FSDO in Florida would not recognize the certifcate since it was written for a different FSDO.

Turned out to be a very expensive twin that he bought.

 

[Publishers]

I fyou buy the corporate entity, and, that is probably necessary to get the certificate, you will be buying any potential liabilities that are out there.
Secondly, in todays world, almost any certificate that is sold (by selling the company) is looked at as a new certificate unless the management team is substantially the same as before the purchase.

 

[climbhappy]

publishers is right...as a former cert holder and then after 9/11, an acting DO for an outfit out of orlando purchased by two miami columbians, i can tell you:

no revenue flights in 90 days, will have to undergo practically from scratch. your plane will have to pass inspection, any manuals approved unless you're single PIC. base visit. resume quals for management position. checkrides etc etc

with the orlando FSDO, these clowns bought an empty(without plane )cert. they didn't have a plane and the fed kept telling me we needed a lease agreement or a plane to go forward. ie. there is nothing to certify. needless to say these yo yos went bellyup and i landed on both mains.

it really ain't that big of a deal. start from scratch and attack it with your POI.

 

[surveypilot]

You really can't buy a Certificate. The Certificate is the property of the FAA. You can buy a corporate entity that holds a certificate. Even then, you need to have some fairly good assurances that the management is going to stay in place for a transition period. If you buy the company and the DO and/or Chief Pilot walks, then the FSDO will very possibly revoke the certificate. I would be very upfront about your intentions with the FSDO and work on a transition plan prior to actually buying anything.

 

[climbhappy]

adding to that, i would have a statement of compliance ready to submit. irregardless, the new mgt folks will have to be approved and since an entirely new set of ops specs will have to be issued including the aircraft passing the PMIs scrutiny, it is like starting over.

to me it is a ruse for anyone selling a certificate or holding it out to be sold. it is kind of a scam.