buying an aircraft

NAFA member AOPA Finance shares part two of their two-part series on aircraft loans and financing to ownership structure. 

In the first part of this two-part series, “Common Reasons Loans Stall Out—and How to Keep Your Deal on Track,” we covered how thorough, accurate documentation—from financials to proper registration—helps lenders clearly assess risk and keeps the aircraft financing process moving forward. A second aspect of purchasing an airplane that must be addressed early on is ownership structure. Often, in the case of turboprops and jets, ownership structure is something other than an individual. Both lenders and the FAA need to clearly understand the complete chain of ownership.

Is the ownership entity an LLC formed by an individual specifically for the aircraft (e.g. My Airplane LLC)? Or is it an aircraft ownership LLC owned by the borrower’s widget manufacturing company? Or is it the borrower’s holding entity, which owns the widget manufacturing company that will own the aircraft ownership LLC? Those multitude of layers must be clearly traced back to the individual or the entity that is guaranteeing the loan. It’s best to determine the ownership structure early on and commit to it.

Often, we’ll see a borrower identify an aircraft, get everything all set up, and sign a purchase agreement based on the individual buying the aircraft. Afterwards,  they may talk to their financial advisor who advises them to establish ownership through an existing entity or to create a new structure for tax savings or liability protection. A change in ownership structure will require amended or additional documentation, creating a choke point in the loan process.

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This article was originally published by AOPA Finance on May 18, 2026.

A large proportion of qualified buyers are unable to secure aircraft financing through traditional channels. JSSI Aviation Capital’s Ben Hockenberg discusses how the market is evolving and how more flexible approaches are helping buyers transact more efficiently.

Even when a company or individual has the ability to acquire an aircraft outright, financing can still play an important role, allowing buyers to preserve liquidity, maintain flexibility, and allocate capital across their broader business.

When financing aligns with the aircraft and the buyer's operating reality, it can support more efficient outcomes for all parties involved. This setup aims to have the lender earn returns over a defined term, with the borrower gaining access to the aircraft without unnecessarily constraining capital.

In practice, however, many otherwise qualified buyers find that traditional financing channels don’t always accommodate the specifics of their transaction.

For example, not everyone is in a position to acquire a new or nearly-new aircraft. A sizable portion of buyers shop the slightly older pre-owned aircraft market. Once aircraft age beyond ten years, the pool of willing lenders often becomes meaningfully narrower.

Others can afford newer aircraft but are based in regions that are less well served by established financing channels, or they operate under structures that don’t neatly align with standard underwriting frameworks.

Read full article here

This article was originally published by AvBuyer on May 19, 2026.

NAFA member Western Aviation shares their latest article on Aircraft Appraisals.

The appraisal of an aircraft is a nuanced process requiring expertise, precision, and a deep understanding of the aviation market. Every valuation reflects a combination of physical condition, operational history, technological integration, and market trends. Buyers and sellers alike benefit from professional insight into how these factors influence an aircraft's current and future value. This article outlines the critical components that impact an aircraft appraisal, offering actionable guidance for stakeholders seeking reliable assessments.

1. Evaluate the Condition of the Aircraft

1.1 Inspect Exterior and Interior Thoroughly

The physical condition of an aircraft is a primary determinant of its market value. Detailed inspections of both exterior and interior components reveal wear, cosmetic issues, and potential underlying problems that may affect safety and longevity. Even minor imperfections, such as scratches or paint chipping, may signal the need for deeper evaluation. Using advanced inspection tools and methodologies ensures a precise assessment, aligning findings with industry standards.

Interior condition also directly impacts passenger comfort, operational safety, and market perception. Evaluations include seating, cabin layout, lighting, galley systems, and overall aesthetics. Upgrades and refurbishments that enhance passenger experience often increase appraisal value. Integrating specialized aviation consulting support is essential to interpret these findings effectively, especially as approximately 50% of air traffic management projects now rely on digital and automated systems, which influence the operational relevance of the aircraft.

1.2 Review Maintenance Records

Comprehensive maintenance documentation is essential in validating an aircraft's operational reliability. Records detail routine maintenance, major overhauls, and compliance with service bulletins. Consistent and well-maintained logs positively influence aircraft appraisal outcomes, while gaps or inconsistencies can raise concerns. Appraisers closely examine adherence to mandatory schedules and regulatory compliance, which ensures airworthiness and operational predictability.

Engine and component histories are also critical. Proper documentation demonstrates foresight in managing wear and replacement schedules, contributing to the aircraft's credibility and long-term value. This review process ensures that prospective buyers and investors have confidence in the aircraft's condition.

1.3 Assess Engine and Component Health

Engine performance and the condition of major components are core factors in determining aircraft value. Appraisers analyze metrics such as fuel efficiency, power output, and reliability, considering both historical data and projected operational longevity. Well-maintained engines and components indicate readiness and safety, which directly impact market appeal. In contrast, signs of repeated repairs or declining performance can reduce appraisal values.

The availability of replacement parts and potential upgrades also informs valuations. Scarcity of parts in older models can increase operational costs, while modern systems with accessible components enhance the aircraft's usability and attractiveness. Continuous monitoring and specialized diagnostics provide data-driven insight into engine and component health, forming a robust basis for accurate aircraft appraisal.

Read full article here

This article was originally published by Western Aviation on May 11, 2026.

NAFA member, AOPA Finance, shares their latest aircraft finance article.

From credit and cash flow to aircraft type and pilot experience, here’s how lenders evaluate both you and the airplane before approving a loan.

The four main questions to ask about aircraft financing are: What does the process look like? What are the general financial requirements? What are the aircraft requirements? And what are the pilot requirements?

The General Process

Aircraft financing is different than auto or mortgage financing. This is partly due to the size of the aircraft market. For example, if one of the major auto manufacturers delivered only 2,000 units in a year, they would quickly go out of business. Conversely, if an aircraft manufacturer delivered 2,000 aircraft in a single year, it would be a stellar year. Aviation’s small market size affects lending practices.

Where home and auto lenders leverage volume to streamline the process and spread out risk, aircraft lenders are generally required to look more closely at each transaction to account for the perceived risk in a small, niche market. That’s why the process will often include a detailed financial review, as well as an examination of the aircraft, its registration, airworthiness documentation, and its current market value, before a decision is made. When it comes to closing, an escrow company will be involved to make sure all documentation is correctly filed with the FAA, and the transfer of funds is handled appropriately. The closing process for an aircraft loan is similar to that of a mortgage, although it normally doesn’t take as long.

Read full article here

This article was originally published by AOPA Finance on March 27, 2026.

Looking to finance an aircraft acquisition? How might your intended mission impact the deal you’re offered? Graham Jarvis gets the lowdown from a selection of industry experts…

Simply put, an aircraft owner’s mission tells the story of how and where an aircraft will be used. For example, it indicates the demand that will be put on the aircraft in terms of how many hours it is expected to be flown, and by whom.

For underwriting as well as for financing purposes, there’s also a need to consider mission risk, including collateral risk, operational risk, jurisdictional and regulatory risk.

According to Tripp Thurston, CFO & Group President of Firecrown Media & COO at FLYING Finance, “a Part 91 personal or private business use mission – where the aircraft will be flown by an experienced pilot, remain within a defined geography and the expected hours of less than six hours per week (300 hours annually) – usually tells a lender that the aircraft is likely to remain in pristine condition for a longer duration.

“In contrast,” he adds, “Part 135 charter operations, small cargo or passenger airlines, and flight schools (Part 141 in particular) will have much higher usage on the airframe, and the pilot may or may not be making the smoothest landings. So, lenders take into account how the airframe will be treated.”

Engine time between overhaul (TBO) is reached more quickly with higher hour use cases, meaning that an airframe will depreciate quicker too.

“Comparing these two scenarios, a lender is likely to offer a longer payment schedule, or amortization, for the lower use Part 91 aircraft purchase, and a shorter amortization for the higher use charter or flight school operation,” Thurston reveals.

Paul Sykes, Director of Originations of EMEA & APAC at JSSI Aviation Capital, claims that highly configured aircraft are a challenge for financiers. “Specialized equipment often drives up the purchase price, but some lenders assign it little or no residual value, and sometimes it can even have a negative effect on value.”

Some configurations may require structural changes, such as cutting into the fuselage. They can be dealbreakers because they alter the structural integrity of the aircraft – including, Sykes says, any potential corrosion points and structural risks.

“For special mission assets like medevac or surveillance, some specialist lessors will lend, but their comfort comes from the underlying operating contracts rather than the aircraft itself.” Nevertheless, Sykes warns, this leaves the problem that if those contracts aren’t renewed, “they can quickly find themselves holding a valuable, heavily amortized asset with limited remarketing options.”

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This article was originally published by AvBuyer on May 14, 2026.

NAFA member Shawn Holstein, Co-Founder, President and CEO of Holstein Aviation, shares his latest article on how to structure ownership when purchasing a private jet.

When you purchase a private jet, one of the first decisions you’ll make — and one that has long-term consequences — is how to hold title to the aircraft. The jet ownership structure you choose affects your liability exposure, your tax position, your privacy, your estate planning, and how the aircraft is registered with the FAA.

Most buyers don’t think deeply about this question until they’re close to closing. That’s too late. The structure should be determined before the purchase agreement is signed, because changing it afterward is possible but creates unnecessary complication and cost.

Here’s a clear breakdown of the three primary options: individual title, LLC, and trust.

Individual Title

Holding an aircraft in your own name is the simplest structure. The FAA registration is in your name. The title is in your name. There are no entity formation costs, no annual maintenance requirements, and no additional administrative overhead.

For some buyers — particularly those using the aircraft exclusively for personal travel with no business purpose — individual title can be appropriate. But the simplicity comes with a meaningful tradeoff: personal liability exposure.

When an aircraft is titled in your name and something goes wrong — an accident, a liability claim from a passenger or a third party — your personal assets are directly in the line of fire. There’s no legal separation between you and the aircraft.

For most buyers, particularly those with significant personal wealth or business interests to protect, that exposure is unacceptable. The liability protection offered by an entity structure is usually worth the additional complexity.

Read full report here

This article was originally published by Holstein Aviation on May 12, 2026.

NAFA member David G. Mayer, Partner at Shackelford, McKinley & Norton, LLP, shares his latest article on aircraft refinancing.

Cash is king, but using other people's money could be more advantageous.

A subtle shift toward refinancing business aircraft appears to be underway. Although an estimated 70% of aircraft buyers pay cash, these figures do not reflect financing trends I have noticed in loan and lease activity since 2025 amid robust demand for business aircraft. Perhaps this preference for paying cash is softening as buyers conclude that it results in lost financial opportunities, a counterproductive allocation of capital, and a diminution in accumulated wealth.

Two Categories of Refinancing  

At a high level, aircraft refinancings fall into two broad categories: secured loans and sale-leasebacks. A refinancing here refers to a loan or lease (financing) completed after the aircraft purchase date. 

In a secured loan, a lender disburses funds to an owner/borrower in one or more advances, including new aircraft progress payments. The lender secures repayment by obtaining a security interest in the purchase agreement, the aircraft and related assets under a security agreement/ mortgage.

A true sale-leaseback occurs when an owner sells the aircraft to a buyer/lessor at 100 percent of the agreed-upon sale or market value and then leases it back to the selling owner. A lease of a business aircraft under the Uniform Commercial Code (UCC) generally means a transfer by a lessor to a lessee of the right to possess and use the aircraft for a term in return for consideration, such as hourly, fixed, or variable rents. Lessors also fund progress payments and convert them into a lease.

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This article was originally published by AINsight on May 8, 2026.

NAFA member Shawn Holstein, President, CEO and Co-Founder of Holstein Aviation, shares his latest blog.

When a private aircraft is registered with the FAA, the registered owner’s name and address become part of a public record. For many buyers, that’s not a concern. For others — high-net-worth individuals, public figures, corporate owners seeking confidentiality, and non-U.S. citizens who want FAA registration — an aircraft owner trust offers a solution that addresses both privacy and legal structure in a single vehicle. 

Understanding how an aircraft owner trust works, when it’s useful, and what it actually accomplishes (and doesn’t accomplish) helps buyers make the right ownership structure decision from the start.

What Is an Aircraft Owner Trust?

An aircraft owner trust is a legal arrangement in which a trustee — typically a specialized trust company or financial institution — holds legal title to an aircraft on behalf of a beneficial owner. The trust itself is the registered owner of record with the FAA. The beneficial owner controls and uses the aircraft, but their name does not appear in the FAA aircraft registry.

The trust operates under a trust agreement that defines the relationship between the trustee and the beneficial owner, including the terms under which the trustee holds title, the authority of the beneficial owner over the aircraft, and the conditions under which the trust can be dissolved or the aircraft transferred.

From an operational standpoint, nothing changes. The aircraft is flown, insured, and maintained exactly as it would be under any other ownership structure. The difference is entirely in how title is held and who appears in the public record.

Read full blog here

This blog was originally published by Holstein Aviation on May 5, 2026.

NAFA member Amanda Applegate, Partner at Soar Aviation Law, shares her latest article on Lender's Aircraft Appraisals.

When a buyer elects to finance their aircraft, most lenders require an aircraft appraisal. Lenders will require one of two types of aircraft appraisals: 1) a desktop aircraft appraisal or 2) a physical appraisal of the aircraft.

A desktop, or remote, aircraft appraisal is based on certain aircraft information which is sent to the aircraft appraiser and the aircraft appraiser completes the appraisal based on the information received. The information usually needed to complete the desktop aircraft appraisal includes: a recent computerized aircraft maintenance report showing upcoming inspections and any past due items; aircraft make, model, and serial number; the aircraft configuration; and an aircraft specification, including current times on the airframe, engines and APU. The aircraft appraiser will also need to know if the aircraft is currently on any airframe, engine or other maintenance programs. Appraisers will also use market considerations and analyses in the appraisal.

Read full article here

This article was originally published by Soar Aviation Law on April 24, 2026.

NAFA member Jeff Dunn, Founder of Hawthorne Aero Valuation Services, shares his latest article about where business aviation finance stands right now.

What a week at NAFA in Savannah reinforced about where business aviation finance stands right now.

The mood at the NAFA conference in Savannah this week was one of genuine optimism. Low used inventory, elevated values across many segments, and lenders who by most accounts remain hungry to put money to work. For anyone who lived through the decade-plus of compressed values that followed the financial crisis, the current environment feels like a meaningful shift.

And it is. But it also warrants a clear-eyed look at what's driving it - and what that means for the people financing these assets.

Read full article here

This article was originally published by Hawthorne Aero Valuation Services on April 21, 2026.

Contact Information:                                                                                                                      
 

Theresa C. Myers
theresa.c.myers@nafa.aero                                                      
410-571-1740

Michael Cosgrove
michael.cosgrove@everbank.com
904-612-4160

NAFA Welcomes New Member: EverBank

Edgewater, MD — April 8, 2026 - The National Aircraft Finance Association (NAFA) is proud to announce that EverBank has joined its distinguished network of business and general aviation finance professionals.

EverBank, N.A. (EverBank) is a nationwide specialty bank providing high-value products and services to consumer and commercial clients coast-to-coast. As a pioneer in online banking, we offer convenient digital access for clients 24/7, in addition to phone banking services and a network of financial centers across California, Florida and New York. EverBank’s commitment is to deliver to our clients high-performing, high-yield solutions backed by exceptional service, always giving them the advantage they expect, to make the most of their money.

NAFA President Bryan Byers welcomes EverBank to the National Aircraft Finance Association. “We are pleased to welcome EverBank to NAFA and believe their expertise in the general and business aviation finance market will benefit all NAFA members.”

The Corporate Asset Finance division is responsible for all aspects of strategic direction, business development, credit, asset management and operations for the bank’s Corporate Asset Finance business. Our specialized Corporate Asset Finance team comprises some of the industry’s most experienced asset finance professionals, who are uniquely positioned to design tailored solutions that meet ever-changing clients’ needs.

“Joining the National Aircraft Finance Association underscores EverBank’s commitment to the specialized aircraft finance community,” said Maureen Carr, Head of Corporate Asset Finance. “NAFA’s focus on collaboration, education, and industry best practices aligns closely with our approach, and we look forward to engaging with fellow members to help advance the general and business aviation finance market.”

For more information about EverBank, visit everbank.com.

About NAFA:  
The National Aircraft Finance Association (NAFA) is a professional association comprised of over 175 companies that promote the general welfare of aircraft finance for more than 50 years. Through collaboration, expertise, and educational content, NAFA provides the business and GA aircraft finance community opportunities for growth and betterment. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members with the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer. 

More information at https://www.nafa.aero.

NAFA member Holstein Aviation shares their latest blog.

When you are deep in the process of a high-value transaction, the excitement of acquiring a new tail number is often met with the sobering reality of complex paperwork and financial risk. This is where aircraft escrow services become the unsung heroes of the industry.

For anyone engaging in aircraft brokerage, understanding how escrow functions is not just a technicality—it is a fundamental safeguard for your investment.

WHAT IS AIRCRAFT ESCROW?

In simple terms, an escrow service acts as a neutral third party that holds the funds and the title documents for a transaction. They ensure that the money doesn’t move until the title is clear, and the title doesn’t move until the money is secured.

In the world of aviation, this almost always happens through specialized firms located in Oklahoma City, due to its proximity to the FAA Civil Aviation Registry.

WHY ESCROW IS ESSENTIAL IN AIRCRAFT BROKERAGE

Whether you are buying or selling, the “handshake deal” doesn’t exist in turbine-class aviation. Here is why escrow is a non-negotiable step:

• Title Clearing: The escrow agent performs a professional title search to ensure there are no outstanding liens, back taxes, or “clouded” history that could haunt the new owner.

• Fund Security: Buyers deposit earnest money and the final purchase price into a protected account. This proves to the seller that the buyer is “real,” while protecting the buyer from sending money directly to a party that might not deliver the aircraft.

• International Complexity: For cross-border deals, escrow agents manage the intricacies of deregistering an aircraft from one country and preparing it for the next, ensuring all Cape Town Convention requirements are met.

Read full article here

This article was originally published by Holstein Aviation on March 27, 2026.

NAFA member, Western Aviation, shares one of their latest articles.

In the intricate world of aviation transactions, aircraft appraisal companies play an indispensable role. These companies provide vital services that influence buying, selling, and financing decisions for aircraft. Their assessments guide sellers in setting the appropriate price and help ensure buyers are making informed investments.

Understanding the Need for Accurate Aircraft Appraisals

Accurate appraisals form the foundation of sound financial decisions in aviation transactions. Aircraft, due to their high value and the complexities involved in their assessment, require precision and reliability in valuation. Properly conducted appraisals mitigate the risks that buyers and sellers face, providing a stable ground upon which negotiations can proceed. Without these appraisals, both parties may encounter unforeseen financial discrepancies after the transaction.

Aircraft appraisal companies bring expertise and an unbiased perspective that are necessary for these evaluations. By relying on data such as maintenance records, market demand, and technological advances, they generate reliable aircraft values. With such insights, stakeholders can negotiate prices rooted in reality rather than speculation, fostering transparency in transactions. A thorough appraisal can highlight potential issues that may require attention, allowing stakeholders to adjust their expectations accordingly.

By fostering a clear understanding of an aircraft’s worth, appraisals contribute to setting market standards. As the aviation industry evolves, the criteria for appraisal must adapt to reflect these changes. Valuation accuracy is crucial, given that aerospace technology and market conditions can fluctuate significantly. Hence, the involvement of experienced aircraft appraisal companies is pivotal in aligning aircraft values with current trends and providing context to their assessments.

Read full article here

This article was originally published by Western Aviation on March 3, 2026.

NAFA member Holstein Aviation shares one of their latest blogs.

Deciding whether to purchase a new or pre-owned private jet is one of the most significant investment decisions an aviation buyer will face. It is a choice that balances immediate financial considerations against long-term operational goals, maintenance predictability, and personal preferences.

Whether you are browsing the global market for an aircraft for sale, considering models or coordinating with a manufacturer, understanding the distinct trade-offs of each path is the first step toward a sound investment.

THE CASE FOR BUYING NEW

Purchasing a factory-new aircraft offers the “cleanest” ownership experience available. You are the first operator, which brings several key advantages:

• Customization: From exterior paint schemes to specific interior layouts, high-end galley configurations, and the latest cabin connectivity, you have complete control over the final product.

• Warranty Coverage: New jets come with comprehensive manufacturer warranties (typically covering airframe, engines, and avionics for several years), which provide significant protection against unexpected repair costs.

• Latest Technology: You benefit from state-of-the-art avionics, the most fuel-efficient engine designs, and modern cabin pressurization systems that reduce passenger fatigue.

Read full article here

This article was originally published by Holstein Aviation on March 17, 2026.

Contact Information:    
 

Theresa C. Myers
theresa.c.myers@nafa.aero                                                      
410-571-1740            

Kyle O’Donnell
kodonnell@elevexcapital.com
404-889-2536

NAFA Welcomes New Member: Elevex Capital

Edgewater, MD — March 30, 2026 - The National Aircraft Finance Association (NAFA) is proud to announce that Elevex Capital has joined its distinguished network of business and general aviation finance professionals.

Elevex Capital is a commercial equipment payment solutions company that engineers payment structures around how equipment generates business value. Rather than applying standard loan terms, Elevex structures payments to align with real-world business needs—including seasonal structures for cyclical businesses, usage-based models for variable demand, contract-aligned terms for project-based work, milestone-based payments, and CapEx-to-OpEx conversion through as-a-service programs. Serving small businesses, mid-sized companies, equipment sellers, third-party originators, community banks, and capital markets partners, Elevex combines decades of equipment finance structuring expertise with AI-powered technology to deliver sophisticated payment solutions at speed. With aviation transaction sizes from $1,000,000 to $25,000,000+, Elevex provides direct lending across the United States and Canada.

“Elevex Capital is proud to become a member of the National Aircraft Finance Association,” said Jeffry D. Elliott, Founder & CEO. “Our team has structured billions in equipment transactions across virtually every asset class, and aviation represents a natural extension of our payment engineering expertise. NAFA’s community of aviation finance professionals shares our commitment to innovative, sophisticated financial structures that serve the real needs of equipment operators. We look forward to bringing our approach—payments engineered around what equipment achieves, not what it costs—to the aviation finance community, and to collaborating with NAFA members to expand what’s possible in aircraft financing.”

NAFA President Bryan Byers welcomes Elevex Capital to the National Aircraft Finance Association. “We are pleased to welcome Elevex Capital to NAFA and believe their equipment payment engineering expertise will benefit all members.”

For more information about Elevex Capital, visit elevexcapital.com.

About NAFA:  
The National Aircraft Finance Association (NAFA) is a professional association comprised of over 175 companies that promote the general welfare of aircraft finance for more than 50 years. Through collaboration, expertise, and educational content, NAFA provides the business and GA aircraft finance community opportunities for growth and betterment. Our network of members is comprised of lenders and product service providers who work together to finance general and business aviation aircraft. NAFA sets the standard for best practices in aviation finance by educating its members with the most up-to-date industry trends and best practices. Government legislation, market influences and industry insights allow member companies to provide the highest quality services the industry has to offer. 

More information at https://www.nafa.aero.