buying an aircraft

NAFA member Arcadia Jets shares their latest article on how brokerage services simplify aircraft sales.

Selling an aircraft sounds simple until the process begins. Owners often assume the most difficult part will be finding a buyer, but experienced aircraft owners know that locating a prospective buyer is only one step in a much larger transaction. Pricing strategy, aircraft presentation, maintenance records, market conditions, inspections, negotiations, documentation, escrow, financing, and closing all influence whether a sale succeeds or falls apart.

This complexity is exactly why aircraft brokerage services continue to play an important role throughout the general aviation marketplace. A professional broker helps sellers navigate a process that can quickly become overwhelming while helping buyers evaluate opportunities with greater confidence. At Arcadia Jets, we view brokerage as much more than marketing aircraft. We view it as guiding clients through a transaction that involves significant financial decisions and long-term ownership considerations.

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This article was originally published by Arcadia Jets on July 7, 2026.

NAFA member CFS Jets shares part two of their latest article on when to replace a business jet.

Determining the right time to replace a business aircraft requires balancing operational risks against financial considerations. This article examines how aging jets accumulate downtime and maintenance risks while exploring whether to keep an older aircraft, purchase a newer pre-owned jet, or invest in a factory-new replacement. Through detailed financial modeling and real-world case studies, discover how net operating costs and NPV analysis can guide strategic aircraft replacement decisions.

Previously, we established that a business aircraft should be replaced when its risk profile begins to outweigh the benefit. This inflection point is rarely driven by a single cost, but by the combined effect of rising downtime risk, the growing likelihood of major maintenance events, fuel inefficiency, and growing regulatory and compliance burdens.

As aircraft age, operational volatility grows. More AOG days, longer MRO shop visits, parts constraints, and higher exposure to unplanned disruptions all increase.

When the expected cost of these risks – particularly aircraft downtime that directly impacts the business – approaches or exceeds the capital and financing cost of a replacement aircraft, replacement becomes economically justified.

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This article was originally published by CFS Jets on June 10, 2026.

NAFA member CFS Jets shares part one of their latest article on when to replace your business jet.

Deciding whether to replace a business jet involves more than simply wanting a newer aircraft. The key is evaluating controllable costs such as fuel burn, maintenance reserves, and downtime risk against unavoidable expenses. Aircraft owners should analyze cost escalation trends, maintenance timing, and operational disruption potential to determine if replacement makes financial sense. Supply chain constraints and evolving environmental regulations further influence the decision.

Understanding the Core Decision

Reconsidering a business jet is rarely a matter of whether owning something newer would be better. The discussion should revolve around eliminating otherwise avoidable costs and risks. When your existing aircraft exceeds the incremental cost of switching to another airplane, that should be a decision driver.

Volatile fuel prices, rising maintenance costs, and upticks in aircraft downtime will all weigh heavily in the decision, along with growing ESG and emissions scrutiny driven by policy and stakeholder expectations.

Aircraft ownership has always been finely balanced between financial, operational, and mission fit, but today the escalating costs of parts and labor combined with constrained MRO shop capacity can turn routine maintenance into prolonged AOG events.

Whether to retain or replace an existing aircraft increasingly centers around projecting maintenance cost escalation, timing risk, and the ability of a particular aircraft owner to absorb disruption of a grounded airplane.

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This article was originally published by CFS Jets on May 27, 2026.

NAFA member Arcadia Jets shares their latest article about aircraft brokers and what they do. 

Ask someone outside the aviation industry what an aircraft broker does and the answer is usually simple: a broker helps buy and sell airplanes. While technically accurate, that explanation barely scratches the surface of the role a professional aircraft broker plays in a successful transaction.

Aircraft ownership represents a significant financial commitment, and unlike many other assets, every airplane carries a unique history. Two aircraft of the same make, model, and year can have dramatically different values and ownership experiences. Maintenance practices, operational history, avionics upgrades, inspection status, engine programs, and recordkeeping all influence not only what an aircraft is worth today, but also what it may cost to own tomorrow.

This is where an experienced aircraft broker creates value. Rather than focusing solely on the transaction itself, a broker helps buyers and sellers understand the broader picture. The objective is not simply to complete a sale. The objective is to help clients make informed decisions that support their long-term aviation goals.

At Arcadia Jets, we often tell clients that the airplane is only one piece of the transaction. Understanding the aircraft, the market, and the strategy behind the acquisition or sale is what ultimately determines success.

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This article was originally published by Arcadia Jets on June 30, 2026.

How will you use your airplane? It’s a question AOPA Finance asks early—because the answer shapes your financing options and terms.

To lenders, airplanes fall into two categories: “nice-to-have assets” or “working assets.” Personal or business travel aircraft typically fly fewer hours and are considered nice-to-have. In contrast, aircraft used for charter (Part 135) or leaseback fly more frequently and are treated as working assets. The difference in usage creates very different risk profiles.

Nice-to-have aircraft are easier for lenders to manage in a default scenario. They can be sold without disrupting a business, and their depreciation tends to be slower and more predictable. That makes them a more comfortable risk, often qualifying for favorable terms—like longer amortization and lower down payments.

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This article was originally published by AOPA Finance on June 12, 2026.

NAFA member Shawn Holstein, President of Holstein Aviation, shares his recent blog about fractional rebound in the market.

Following the unprecedented demand for full aircraft ownership during and immediately after the pandemic, the fractional aircraft ownership market is experiencing a strong resurgence. For those in the market for business aircraft sales, this shift is more than just a market trend—it’s a major indicator of evolving buyer behavior and a potential pathway to full ownership. Understanding this dynamic is crucial for both sellers and first-time buyers weighing their options.

WHAT’S DRIVING THE FRACTIONAL REBOUND?

Several key factors are fueling the renewed interest in fractional ownership, which offers a cost-effective alternative to owning an entire aircraft.

• Renewed Market Stability: After a period of record-high demand and tight supply, the private aviation market has normalized. Fractional providers have been able to replenish their fleets, improving availability and giving buyers confidence in their ability to meet demand.

• The Appeal of Flexibility: Fractional ownership allows buyers to access a fleet of aircraft without the full financial and operational commitment of sole ownership. It provides a more flexible solution for those with predictable flight patterns or a fluctuating need for private travel.

• A “Step-Up” from Jet Cards: Many users who first experienced private travel through jet cards during the pandemic are now looking for a more committed, cost-effective solution. Fractional ownership provides the next logical step, offering higher priority access and more stable pricing.

• Lower Initial Investment: The initial capital outlay for a fractional share is significantly less than for a full aircraft acquisition. This makes it an attractive entry point into private aviation for a broader demographic of affluent individuals and companies.

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

How can you tell why an owner is selling their aircraft, and the level of offer they will accept for it? Getting those answers might be easier than you think, as Chris Kjelgaard discovers...

Buying a pre-owned business aircraft isn’t just a matter of paying the sticker price listed in an advertisement by the seller’s agent and walking away with the aircraft’s title documents.

Contacting the seller’s agent – or, more likely, having a broker do so as your representative – is just the first step in a complex and sometimes lengthy process of communication, negotiation, compromise, physical inspection, and (occasionally) modification of the asset in question.

But at the root of all purchases of pre-owned business aircraft are three important questions to which the buyer needs to learn the answers if they’re to know that the aircraft they are pursuing is worth buying.

• What’s the seller’s motivation for selling the aircraft?
• What level – below the asking price or otherwise – will the seller agree to sell the aircraft for?
• Is the aircraft worth buying for that price – or for any price?

Research the Aircraft Seller’s Background 

Knowing something of a seller’s background and why that seller is motivated to sell their aircraft provides the first important clues the buyer needs in understanding the complete picture of the transaction. 

Luckily for the buyer, says Forrest Owens, Principal of Aviation Legal Counsel, “The [stories sellers] tell are usually apparent: they usually come to light pretty quickly. Based on the price of the deal and how urgent they are, you usually can figure out why someone is selling.” Indeed, the reasons are varied across the board. 

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This article was originally published by AvBuyer on June 10, 2026.

NAFA member David G. Mayer, Partner in the Aviation Practice Team at Shackelford, McKinley & Nortin, LLP, shares his latest article in Business Jet Traveler.

Paying for your jet in cash? Maybe you should reconsider.

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 Business Jet Traveler in May 2026.

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.

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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.

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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.

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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.

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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.

Read full article here

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