buying an aircraft

NAFA member Amanda Applegate, Partner at Soar Aviation Law, shares her latest article about aircraft scarcity.

Usually, during the summer months aircraft transaction volume slows down, causing pre-owned aircraft inventory to increase. Normally, this summer slowdown is helpful during the 4th quarter when transaction volume peaks. However, 2026 inventory levels remain extremely low, particularly for the desirable aircraft models with low aircraft times and cycles. At a recent industry event I attended, many aircraft brokers mentioned how numerous clients looking for good, quality aircraft to purchase  have been unsuccessful in finding anything that matches their search criteria. This aircraft shortage will impact the remainder of 2026 in three important ways.

First, as inventory levels decrease, sellers respond by requiring more seller-friendly terms in transactions such as larger non-refundable deposits, aggressive closing timelines and limiting the scope of pre-purchase inspections. These seller-friendly terms inevitability leave the buyers accepting more risk in the transactions. A strong seller market can turn off aircraft buyers and result in those buyers not moving forward with a transaction or moving into fractional ownership. Fractional programs can offer interim lease solutions which allow for immediate aircraft access while the new aircraft that the buyer purchased a fractional share in is being built.

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This article was originally published by Soar Aviation Law on July 14, 2026.

While purchase price is the major focus for aircraft buyers, it’s far from the only cost to consider. Some are easily overlooked but can significantly impact the overall transaction. Gerrard Cowan asks industry experts what those costs are.

The real cost of an aircraft transaction extends well beyond the purchase price. A prime example can be found with the Pre-Purchase Inspection (PPI), where costs can change quickly.

“Depending on the aircraft, the work scope of the PPI and discrepancies identified during inspection can introduce material adjustments and extend timelines,” notes Todd Jackson, Senior Vice President of Sales at Elliott Jets.

The cost of any subsequent downtime is frequently overlooked by buyers, according to Jackson. Delays tied to inspection findings or post-close work can affect operations in ways not reflected in the initial purchase price.

“The impact can be meaningful,” Jackson warns. “It is not uncommon to see total transaction costs increase by 5-10% once inspection findings and initial post-close work are fully accounted for.”

Most importantly, such oversights introduce uncertainty, Jackson adds. When expectations are misaligned, deals tend to slow down, require renegotiation, or even fall apart late in the process. “This creates both cost and lost opportunity – particularly if other aircraft were under consideration.”

Aircraft Acquisition: Set Realistic Expectations 

Christopher Lee, President of the Aircraft and Specialty Finance Deposit Divisions at 1st Source Bank agrees that the purchase price is only one component of a successful outcome.

“The transactions that run smoothly, and ultimately create the most value, are almost always those where both parties have realistic expectations from fully understanding the entire cost ecosystem surrounding the deal, not just the asset itself.”

From a financing and structuring perspective, the difference between a ‘good’ and ‘great’ transaction often lies in how well secondary costs are anticipated and managed, Lee highlights. He draws particular attention to the PPI and related costs, highlighting that this is the most common large item where 1st Source sees confusion.

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This article was originally published by AvBuyer on July 8, 2026.

NAFA member Bank of America Global Leasing shares their latest article.

Owning a plane may be a dream, but consider the variables and work with aviation experts.

For those who can afford it, private aviation offers convenience, comfort and privacy—and a powerful symbol of your success. Yet with those benefits come many complexities. “From tax considerations to regulatory concerns to methods of financing, there are many paths you can take,” says Jonathan Hommer, Wealth Strategies Advisor and Head of Family Office Planning in the Planning Center of Excellence for Bank of America Private Bank.

Whether you’re an individual considering private aviation or a family office helping to make these decisions, this is not something you should rush into. Careful deliberation and a skilled team of aviation experts can spell the difference between success and disappointment. As you proceed, here are some important variables to consider.

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This article was originally published by Bank of America on March 6, 2026.

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 Arcadia Jets shares one of their latest articles on how aircraft acquisition services support smarter buying.

Buying Aircraft Requires Structured Evaluation

Aircraft acquisition services exist to bring structure to a process that is often fragmented and inconsistent. Buyers navigating the market without guidance frequently rely on incomplete data, which leads to poor comparisons and misaligned expectations.

Unlike other asset classes, aircraft require simultaneous evaluation of technical condition, operational suitability, and financial impact. Without a defined framework, these variables are often considered independently, which results in inefficient decision-making.

Aircraft acquisition services align these factors into a cohesive process. This allows buyers to evaluate aircraft based on mission requirements, lifecycle cost, and realistic market conditions.

Mission Alignment Drives Aircraft Selection

The starting point for any acquisition should be mission alignment. Range, payload, runway performance, and cabin configuration all need to support how the aircraft will actually be used.

Aircraft acquisition services ensure that selection is driven by operational requirements rather than availability. Brokers work with buyers to define mission profiles and narrow the field to aircraft that meet those criteria.

This reduces the risk of acquiring an aircraft that appears suitable on paper but does not perform effectively in real-world operations.

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This article was originally published by Arcadia Jets on June 5, 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.

 NAFA member Tripp Thurston, Chief Operating Officer at Flying Finance, shares his latest article on aircraft financing.

Financing an airplane is no small task. Here's our guide on how to simplify the process.

Purchasing your own aircraft is an exciting experience, but just like with any large purchase you may be feeling a bit overwhelmed. The journey to owning your dream aircraft involves a crucial step: understanding how aircraft financing works. That’s why we’ve created this guide: to explain the complexities of aircraft financing and dive deep into the loan process.

How Does Aircraft Financing Work?

Just like other forms of financing, aircraft financing follows the same principles but with different considerations due to the niche characteristics of aircraft. Let’s break down the basics:

1. Loan to Value (LTV): This ratio determines the percentage of the aircraft’s value that a lender is willing to finance. LTV varies based on factors like the type of aircraft, its age, usage (pt. 91, pt. 135) and your creditworthiness.
2. Interest Rates: Aircraft finance rates are influenced by factors such as market conditions, the borrower’s credit score, financed dollar amount and the chosen financing option. A lower interest rate can significantly impact the overall cost of ownership.

1. Liens: Lenders often place a lien on the aircraft as collateral for the loan. This legal interest ensures the lender’s security in case of default.

Expected Aircraft Financing: Loan to Value

The loan-to-value (LTV) ratio in aircraft financing is determined by a few different factors:

• Aircraft Type: Different types of aircraft may have varying LTV ratios.
• Age and Condition: Older aircraft may have lower LTV ratios due to depreciation.
• Borrower’s Creditworthiness: A higher credit score may result in a more favorable LTV ratio.
• Aircraft usage: Part 91 vs part 135 will influence the LTV due to hours a year flown. (higher use=lower LTV)

Factors Affecting Aircraft Financing Interest Rate

Several considerations affect the interest rate in aircraft financing:

• Credit Score: A higher credit score often leads to a lower interest rate.
• Market Conditions: Economic factors such as Federal funds rates, SOFR rate, and WSJ Prime Rate impact interest rates in the aviation finance sector.
• Loan Term: The length of the loan term can affect the interest rate offered.
• Amount Financed: Lower finance amount will lead to a higher interest rate.

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This article was originally published by Flying Finance on June 2, 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.