buying an aircraft

As Business Aviation enters a new year, what are the major finance trends that borrowers need to consider for 2026? Gerrard Cowan asked industry experts for their thoughts on the financial environment, challenges and important questions borrowers should ask today.

The financing landscape today “is stable and competitive, but more disciplined than the post-pandemic years,” according to Mike Christie Head of Sales, America, at Global Jet Capital (GJC).

In particular, he notes that interest rates are elevated compared with the general trend for the past decade, pushing buyers to focus more on fixed-rate financing, predictable structures, and thoughtful amortization. This “comes against a backdrop of wider normalization within the business jet market,” he adds.

“OEMs have made progress resolving supply chain and labor constraints (although more work is needed) and aircraft availability has risen from ultra-tight levels (though it remains well below the historical averages).”

By the end of 2025, Global Jet Capital had seen a slight increase in cash purchases in the market and a slight decline in loans over a one-to-two-year period, Christie reveals, though he notes that this decline is likely to be driven by a combination of factors rather than one element in isolation.

“Factors like interest rate relative to reinvestment opportunity, outlook for the economy and individual company/personal cash position influence whether to seek financing,” he illustrates.

Lower Aircraft OEM Backlogs aid More Predictable Planning

Christopher Lee, President of the Aircraft Finance Division at 1st Source Bank, agrees that the low-rate financing surge of 2021-22 is no longer present. Still, demand for business aircraft remains steady, he notes, pointing to a moderation in OEM backlogs from their pandemic highs.

This has enabled more predictable acquisition planning, while there has also been strong demand for financed aircraft from international segments, notably in Latin America.

“This environment contrasts with prior years in a constructive way: financing activity today is driven by operational planning and long-term business needs rather than reactive or inventory-driven pressure,” he says.

Read full article here.

This article was originally published by AvBuyer on January 12, 2026.

NAFA member David G. Mayer, law partner at Shackelford, Bowen, McKinley & Norton, LLP, shares his latest blog on business aircraft transactions.

Knowing the right steps and hiring the right people make all the difference when buying or leasing a business jet—the difference between navigating a smooth journey and encountering turbulence en route to closing.  

In general, purchase transactions have been harder and longer to negotiate over the past couple of years, as sellers seek favorable sale prices and contract terms from buyers who often push back. Also, buyers are choosing more complex structures for tax and privacy reasons. Gone are the days of the pandemic buying frenzy when buyers would unwisely sacrifice inspections and diligence to acquire a jet quickly.

Nevertheless, some buyers claim that after closing many complex non-aviation deals, they can buy and finance a jet with few, if any, aviation experts involved. Unfortunately, some of them ultimately realize the error of their ways by making avoidable mistakes. A client recently told me that his high-dollar aircraft financing was just a simple loan his inside counsel could handle. Yet, he later admitted that he—and his inside counsel—had overlooked at least five critical issues we discussed, and he asked me to negotiate them for him.

Read full article here

This article was originally published by AIN on January 9, 2026.

NAFA member Scope Aircraft Finance shares their latest article on aircraft loan rates.

In light of the Thanksgiving holiday here in the United States, I want to start with a message of thanks to those who have joined us on the roller coaster that has been the US economy in 2025, along with our thoughts on its impacts on the aircraft finance side of the industry.‍

The trends in interest rates have been an interesting story to watch for a while now, but even more so with the Federal Reserve (“Fed”) actively considering whether they should continue to drop rates or not. Since the Labor Day holiday, the Fed has dropped  its target rate by 0.50% in two 0.25% increments. These were the first rate changes the Fed made in 2025 after a period of drops  at the end of 2024. They meet one more time this year and may or may not drop rates another 0.25%. Further complicating matters was the  halt of updated economic data due to the government shutdown.

But does this Fed action (or inaction) have a direct impact on aircraft lending rates?

Read full article here

This article was originally published by StepZero Coaching - The Plane Truth on December 3, 2025.

NAFA member SOLJETS shares their latest article about aircraft deals gone wrong.

Every industry has its share of cautionary tales—but in private aviation, the stakes are sky-high. This Halloween season, SOLJETS takes you behind the hangar doors to reveal the real horror stories of jet transactions gone wrong. From phantom aircraft listings and ghosted maintenance programs to missing logbooks and deals that refuse to die, these aren’t just spooky stories—they’re costly lessons in what happens when expertise is missing from the cockpit of your transaction. In this special feature, we expose the hidden dangers lurking in the private jet market—and show how SOLJETS’ proven process, proprietary data, and veteran team of pilots and brokers keep clients protected from every nightmare scenario. Because in aviation, the scariest thing isn’t turbulence—it’s buying a jet without the right guidance.

Read full article here

This article was originally published by SOLJETS on October 23, 2025.

NAFA member John Armstrong, Founder & CEO of LifeStyle Aviation, shares his latest blog.

There are moments in the market when all the elements align to create an undeniable opportunity. For private aircraft acquisition, we have reached one of those rare moments. After decades in this industry, I can confidently tell you that the confluence of permanent tax law, stabilizing prices, and favorable financing has created what we at LifeStyle Aviation are calling the "Perfect Storm" for Aircraft Buyers right now, particularly as we enter the fourth quarter of 2025.

If acquiring the aircraft of your dreams has been on your mind, the window to maximize your financial and operational leverage is wide open. Here is why the time to act is now.
 

1. The Tax Game-Changer: 100% Bonus Depreciation is PERMANENT
 

The single greatest driver of value for business aircraft acquisition is now a permanent fixture of the U.S. tax code. Thanks to President Trump’s recent legislation, aptly nicknamed the "Big Beautiful Bill," the phase-out of 100% Bonus Depreciation has been repealed, restoring full expensing for qualifying new and used business aircraft.

This permanence is monumental. It removes the uncertainty that has plagued year-end planning and allows us to structure longer-range tax and investment strategies for clients, planning for future upgrades and fleet transitions as pilots grow their experience and ratings.

What does this mean for you?

It means your acquisition costs can be immediately offset against your business income in the year the aircraft is placed into service. Savvy aircraft buyers leverage the tax law to easily justify their dream planes. Leveraging a leaseback or sharing structure, such as our unique DiamondShare program, can produce the necessary business use for tax leverage.

For first-time buyers, the potential is enormous: many, under the right set of facts, can leverage financing and this deduction to achieve a "Cash Flow Positive" position in the initial year of ownership.

"Acquiring your dream plane is no longer a dream; it’s a strategic fiscal decision."

Read full article here

This article was originally published by LifeStyle Aviation on October 10, 2025.

Contact Information:                                                                                                                                                                                
                 

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

Leslie Mogenson                            
leslie@arcadiajets.com
623.466.3153 

NAFA Welcomes New Member: Arcadia Jets
 

Edgewater, MD — October 9, 2025 - The National Aircraft Finance Association (NAFA) is proud to announce that Arcadia Jets has joined its distinguished network of business and general aviation finance professionals.

NAFA President Bryan Byers welcomes Arcadia Jets to the National Aircraft Finance Association. "We are excited to have Arcadia Jets join NAFA, and we anticipate that their expertise in aircraft brokerage services will be valuable in enhancing the knowledge and resources available to all NAFA members."

At Arcadia Jets, we are committed to providing personalized, trustworthy, and relationship-driven aircraft brokerage services. With a foundation built on integrity and transparency, we prioritize our clients' needs, ensuring they receive the highest level of service and market insights when buying or selling their aircraft. By leveraging the latest industry data and a deep understanding of the private aviation market, we guide each client through a seamless, stress-free experience—delivering the exact aircraft or sale outcome they require with professionalism and care.

"Being among the best in the aviation industry means surrounding ourselves with people you can trust—individuals who are dedicated, knowledgeable, and committed to excellence in General Aviation. Ensuring our customers receive the highest level of service and expertise when acquiring their aircraft is our top priority. That’s why we’re proud and excited to join the National Aviation Finance Association, aligning ourselves with a network that shares our values of trust, integrity, and professionalism."
— Adam Hahn, CEO of Arcadia Jets

About NAFA:
The National Aircraft Finance Association (NAFA) is a professional association comprised of over 171 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.

While tax considerations are basically simpler for aircraft sellers than for aircraft buyers in the US, several important matters still require care and attention, as Chris Kjelgaard reports...

At a surface level, the tax considerations facing aircraft sellers in the United States are simpler than they are for aircraft buyers – not cheaper in terms of tax liabilities due, but simpler.

“From the seller’s viewpoint, for tax mitigation you look at the recapture of depreciation and what you need to do to address that,” Scott Burgess, Partner at Aviation Legal Group outlines.

In terms of tax liability arising from aircraft sales, the only thing US sellers must bear in mind is the amount of federal (and possibly state) income tax for which they will be liable on any capital gain they realize on selling their aircraft, he adds.

If the seller sells the aircraft but does not replace it, then they’re liable for the income tax due on the amount of capital gain they have realized.

But if they replace the aircraft they’ve sold with a different aircraft, then they will be able to use the depreciation amount available from the replacement purchase to offset some, or all, of the income tax which would have otherwise been payable.

For instance, if a seller bought an aircraft for $10m originally and during their ownership has depreciated it on their balance sheet to $5m, selling the aircraft for $9m, the seller is left with a $4m capital gain on which federal income tax would be due for that tax year, Burgess illustrates.

Depending on whether the seller is an individual or a corporation, the federal income tax rate on that $4m capital gain would vary from 37% to 21%. The level of state income tax due would vary depending on the state in which the corporation or individual is officially resident – and in some US states they would be liable for very little or no state income tax at all.

Read full article here

This article was originally published by AvBuyer on October 2, 2025.

Contact Information:​​​
 ​​​​​

Theresa C. Myers
Theresa.c.myers@NAFA.aero​​​​
410-571-1740​​​​​​​​​​​​

Susan Weeden ​​
susan@theaircraftlenders.com
862-277-5277

NAFA Welcomes New Member: The Aircraft Lenders
 

Edgewater, MD — September 22, 2025 - The National Aircraft Finance Association (NAFA) is proud to announce that The Aircraft Lenders has joined its distinguished network of business and general aviation finance professionals.

NAFA President Bryan Byers welcomes The Aircraft Lenders to the National Aircraft Finance Association. "We are thrilled to have The Aircraft Lenders join our network, and we anticipate that their engagement and contributions will be immensely valuable in enhancing the knowledge and resources available to all NAFA members." 

The Aircraft Lenders specialize in creating competitive, customized lending solutions for all types of aircraft. They offer some of the most competitive rates in the industry. Whether you’re interested in purchasing a piston-powered airplane, a corporate jet, or even a helicopter, their partnership with more than 50 banks and private investors enables them to tailor the ideal loan or lease to fit your needs.

The Aircraft Lenders cater to a wide range of aviation missions and ownership goals:

· Piston aircraft, Turboprops, Jets, Helicopters

· Light Sport, Experimental/Kit

· New and Pre-owned

· Part 91 – Private Use

· Part 135 – Charter

They also provide insights into depreciation, tax advantages, and insurance considerations, helping you understand the total cost of ownership. Beyond funding, their collaborations with acquisition agents, aviation tax advisors, attorneys, and appraisers allow you to benefit from expert guidance throughout every stage of your transaction. 

The Aircraft Lenders is dedicated to supporting you well beyond the loan process. With a financial partner who truly grasps the complexities of the aviation sector, you can feel confident and well-prepared when it’s time to finalize your purchase.

Products and Services:

· Term loans up to 20 years long

· Leases – Finance Leases, Sale-Leasebacks, Lease-to-Purchase

· Financing for jets, turboprops, piston aircraft, helicopters, light sport, kit, and experimental aircraft

· Financing for Part 91 Use

· Financing for Part 135 Use

“The Aircraft Lenders is proud to become a member of the National Aircraft Finance Association,” said Susan Weeden, Director of Aviation Finance. “As independent aircraft financing brokers, our mission is to make the lending process clear, accessible, and tailored to each client’s needs. Joining NAFA allows us to expand our connections with trusted lenders and industry partners, so we can continue providing clients with the best financing options, while guiding them every step of the way.”

About NAFA:  

The National Aircraft Finance Association (NAFA) is a professional association comprised of over 171 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.

Applying for aviation finance should be a straightforward process, but there are numerous areas that could hurt an applicant’s chances. Gerrard Cowan with AvBuyer asks industry experts to outline five of the most common things for buyers to avoid…

What are the five most common areas where aircraft buyers hurt their chance of securing financing for their aircraft? AvBuyer asked a selection of industry experts…

According to Keller Laseter, Chief Commercial Officer at FLYING Finance, many Business Aviation finance applicants run into trouble by submitting messy or incomplete financials. Problems could stem from missing tax returns, outdated personal statements or neglecting to include business income.

“Lenders need a clear, accurate picture to evaluate risk, and any missing pieces can slow things down or lead to a decline,” he warns.

To address the issue, applicants should begin by gathering and organizing all relevant financial documents, including at least two years of tax returns, current personal financial statements, business financials (if applicable), and proof of liquidity. If income comes from less traditional sources like consulting, digital assets or investments, it’s important to make sure you can clearly show its stability and consistency, Laseter adds.

“Keep your personal credit strong, as it still plays a big role, especially when personal guarantees are required. Most importantly, be transparent. Lenders don’t expect perfection, but they do expect honesty and completeness.”

Indeed, Christopher Lee, President of the aircraft division at 1st Source Bank, says that even high-net-worth individuals sometimes underestimate how lenders assess cashflow and liquidity. Aircraft are unique assets, which depreciate and require ongoing maintenance, insurance, pilot training, hangars and more.

Read full article here

This article was originally published by AvBuyer on September 15, 2025.

NAFA member, David G. Mayer of Shackelford, McKinley & Norton, LLP, shares his latest blog post on how the ultra-wealthy buy private jets. 

Buying a private jet, or a fraction of one, is a viable option.

The act of buying a private jet is a momentous activity typically reserved for aircraft operators, corporations, or ultra-high-net-worth individuals. However, for the latter, they may have more options at their disposal than the others do when it comes to making the purchase.

Ultra-high Net Worth

Starting with investable assets of at least $30 million, the ultra-high-net-worth (UHNW) individual, company, or family represents the top 1% (or higher) level of wealth globally. They likely have a significant capacity to buy a private jet, and are a much larger group of purchasers than billionaires.

UHNW individuals often have friends who are captains of industry, philanthropic leaders, and celebrities who, like them, have access to—or own—private aircraft. While not universal, those with UHNW may have access to investment opportunities that are not available to the general public. As investors, UHNW individuals tend to diversify their holdings in cross-border stock and bond markets, luxury real estate (ranches, island escapes, and ski homes), private equity, commodities, private credit, art, and other collectibles, as well as cryptocurrencies and alternative investments.

Notably, on June 17, 2025, BlackRock released its 2025 Global Family Office Survey, which revealed that current geopolitical uncertainty is the most important issue for 84% of family offices and is a critical factor in their capital allocation decisions. Although I see aspirational purchasers who do not ultimately buy jets, these events do not often dissuade UHNW from buying or financing jets.

Read full article here

This article was originally published by AINsight on September 12, 2025.

NAFA member Soar Aviation Law shares their latest article on the arrival of the 4th quarter rush.

Historically, the fourth quarter has been the busiest period for aircraft transactions. However, 2025 is proving to be an exception. The surge in activity has begun unusually early, with August already showing signs of the traditional fourth-quarter rush. The shift is not coincidental – it is the result of several converging factors that have created a sense of urgency among buyers. Chief among these are the reinstatement of 100% bonus depreciation under the One Big Beautiful Bill Act (OBBBA), labor shortages affecting inspection availability, and ongoing uncertainty surrounding aircraft tariffs.

The OBBBA permanently reinstates 100% bonus depreciation for qualified property placed into service after January 19, 2025 under Section 168(k). This applies to new and pre-owned aircraft, provided they are predominantly used in the United States for qualified business purposes. It is important when establishing the aircraft ownership and operating structure to avoid related party leases or personal use, which can limit qualified business use. This means businesses can deduct the entire purchase price of an eligible aircraft in the year it is placed into service.

Read full article here

This article was originally published by Soar Aviation Law in August 2025. 

NAFA member, SOLJETS, shares their latest article regarding tax incentives.

With the reinstatement of 100% bonus depreciation under the OBBB Act, 2025 marks a prime opportunity for business owners, entrepreneurs, and high-net-worth individuals to leverage private aviation as a strategic tax planning tool. Whether you’re considering fractional ownership, on-demand charter, or full aircraft acquisition, each structure offers distinct advantages under current IRS guidelines—especially when aircraft are used primarily for qualified business purposes.

Full Ownership: Maximum Control, Maximum Tax Incentives

For those seeking complete control over their travel, aircraft selection, and branding, full ownership remains the most robust option—particularly in light of the revived 100% bonus depreciation provision. Initially introduced under the Tax Cuts and Jobs Act, this provision now applies again in 2025 to both new and pre-owned aircraft placed in service this calendar year, thanks to the OBBB.

Read full article here

This article was originally published by SOLJETS on July 20, 2025.

Contact Information:
 

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

Jack Jones 
jjones@tompkinsfinancial.com
845-278-1041 

NAFA Welcomes New Member: Tompkins Community Bank

Edgewater, MD — July 29, 2025 - The National Aircraft Finance Association (NAFA) is proud to announce that Tompkins Community Bank has joined its distinguished network of business and general aviation finance professionals.

NAFA President Bryan Byers comments, "We are excited to have Tompkins Community Bank join our Association, and we look forward to their expertise in aviation financing.”

"Tompkins Community Bank is delighted to be welcomed into the National Aircraft Finance Association,” said David Carey senior vice president, Consumer and Aircraft Lending Manager. “As aircraft lending remains a significant area of focus, we are excited about the opportunities this membership presents to further support the aviation sector with our dedicated financial services."

About Tompkins Community Bank:
Tompkins Community Bank has been offering aircraft loan financing since 2008 initially as part of our commercial small business lending offering. In 2015, we launched our Aircraft Lending Channel as our expertise became widely recognized. Since then, we have honed our process and dedicated ourselves to being a trusted partner to our customers.

Our services are available nationwide and we have specialized experience partnering with brokers to create a seamless process for them and their customers as they move through the lending process.  Our Underwriting philosophy comes from a commonsense approach, we pride ourselves on efficient turn times, first-class customer experience and excellent communication with our partners.

A list of your Products & Services:

• Fixed interest rate loans from 5- 20yr terms

• Tiered rate sheet offering broker incentive options of .25%-2.00%

• Funding loans from $25,000 up to $2,000.000 under standard UW Guidelines

• Loans greater than $2,000,000 - $5,000,000 under enhanced UW Guidelines

• Financing available for prop, turbo prop & jet (no helicopter, experimental or kit aircraft)

• Financing on Consumer and Business Entity registrations available

About NAFA:  
The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for more than 50 years. 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. 

Contact Information:
 

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

Michael Cole
mcole2@arvest.com
630-399-0826
 
 

NAFA Welcomes New Member: Arvest Equipment Finance - Aviation
 

Edgewater, MD — July 2, 2025 - The National Aircraft Finance Association (NAFA) is proud to announce that Arvest Equipment Finance - Aviation has joined its distinguished network of business and general aviation finance professionals.

NAFA President Bryan Byers comments, "We are excited to have Arvest join our Association, and we look forward to the unique alternative solution to typical aviation financing that their team specializes in.”

“Our mission is simple,” said Michael Cole, Vice President of Arvest Equipment Finance - Aviation. “To empower aircraft owners with expert guidance and innovative financial solutions—helping them move forward with speed and confidence.”
 

About Arvest:

Arvest Equipment Finance - Aviation delivers a high-quality alternative to typical aviation financing. The Aviation group supports both FAR Part 91- business & pleasure and FAR Part 135- retail charter. Their team of financial experts and seasoned pilots deliver customized loan solutions designed to address the specific needs of aircraft owners and operators. Their expertise ensures mission-ready outcomes for both the owner and the operator/management company. 

Arvest finances both new and preowned aircraft. Their loan programs deal with preowned airplanes starting with model year 2005 or newer. Arvest finances the following: 

1. Light, midsize, and large cabin jets
2. Single- and twin-engine turboprops
3. Cabin-class piston aircraft
4. Multi-engine turbine helicopters
5. Flight simulators supporting business airplane training

Each loan is structured, reviewing the client's financial stability, the mission, and the economic characteristics of the airplane. This thorough analysis optimizes the interest rates, loan terms, and amortization for the aircraft proposal. Their minimum loan amount starts at $2.5 million.
 

About NAFA:  

The National Aircraft Finance Association (NAFA) is a professional association that has been promoting the general welfare of aircraft finance for more than 50 years. 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. 

NAFA member Amanda Applegate, Founding Partner at Soar Aviation Law, shares the importance of technical representation in aircraft acquisitions.

I have written many times about the importance of assembling the right team when acquiring an aircraft. This team typically includes the buyer, an aircraft broker, escrow agent, lender, aviation attorney, tax advisor, insurance broker, and a management company or flight department. One essential, but sometimes overlooked, member of this team is the technical representative. Too often, the technical representative is not brought in until the pre-purchase inspection. In reality, their role should begin much earlier – at the very start of the acquisition process. A technical expert can provide critical insights throughout the transaction, from market analysis to delivery.

Partnering with a technical representative at the outset allows for a more informed aircraft selection. Working alongside the broker, the technical expert can help evaluate aircraft options – not only based on mission and budget, but also through an early review of aircraft records. This initial technical review helps identify potential performance issues, maintenance concerns, or damage history – factors that should be understood before signing a purchase agreement. If the agreement is signed early, it should allow the buyer to terminate the transaction without penalty after this preliminary document and visual review, should the findings warrant it.

Read full article here

This article was originally published by Soar Aviation Law on June 18, 2025.