Research Problem
Part I
A. For a nation other than U.S., identify the government entity that is the counterpart of the FAA Aircraft Registry. Civil aircraft registered in the U.S. are identified by the letter N, followed by numbers or a combination of numbers and letters. What markings identify civil aircraft registered in the nation you chose?
B. For ground transportation, ride-sharing programs such as Uber are gaining popularity. Several companies, such as Open Airplane, Diamond Share, Air Power, Flytenow and SkyPool were formed to offer similar air transportation programs using privately owned, non-commercially operated aircraft on an expense-sharing basis under 14 CFR § 61.118(b). Determine the FAA`s present position on the legality of such operations and the reasoning behind that position, and then evaluate its reasonableness.
Part II
You are the manager of an FBO. A customer purchases a new airplane through your business. A bank finances that purchase, obtains a security interest in the aircraft through a written security agreement signed by the purchaser, and files that security agreement with the FAA Aircraft Registry and the International Registry. Later, the customer has your shop install upgraded avionics, including a full "glass cockpit" set of multifunction displays (MFD) integrating flight, navigation, engine, and sensor data.
• Do you have the right to require the customer to pay the bill for the equipment and installation in full before you release the aircraft back to the customer? Explain.
• If the aircraft owner went bankrupt at that point (when the work has been done, the bill has not been paid, and the FBO still has the aircraft), who will be paid first from the sale of the aircraft, the FBO or the bank? Why?
• In initial discussions over the price of the equipment and installation, the customer indicates that she wants to buy the unit and have your shop install it, but she would like to pay the price for the equipment and installation in three equal monthly payments, rather than all at once. This is acceptable to you. Is there anything you can require as a condition of releasing the aircraft back to its owner before the debt is paid in full to protect the FBO's security interest in the aircraft for this installation? If so, describe.
• After the transaction described in c, above, your shop installs the equipment in the aircraft and releases it to the owner. Before the bill is paid, the aircraft owner files bankruptcy. Now who is in the superior position to be paid first out of the proceeds of the sale of the aircraft: the FBO or the bank? Explain.
The response should include a reference list. Using one-inch margins, Times New Roman 12 pnt font, double-space and APA style of writing and citations.