To put it simply, will bad things happen if I use a table name which is also a schema name.
For example:
Aircraft.Aircraft
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No reason why you can’t do this, as far as I know, though you may confuse yourself later. I suppose things might get sticky if you wrote queries that didn’t explicitly state the schema, but if you avoided doing that then you ought to be OK.
Having said that, I’d question the wisdom of doing this – to me, it suggests that either the schema name or the table name isn’t properly describing what it contains.