financing

Securing finance is a crucial part of many business aircraft transactions. However, unwary borrowers could end up paying more than necessary. Gerrard Cowan asks aviation finance insiders to outline the key areas to consider when financing your business aircraft.

At a high level, the loan terms – such as the interest rate, loan amortization, loan-to-value, etc. – and the creditworthiness of the applicant are the two major factors when it comes to the cost of aircraft financing, according to Mike Francis, Head of Aircraft Finance at Citi Wealth. The higher the rate, the higher the debt service will be.

The ‘resaleability’ of the aircraft is another key factor. “If you have an applicant with weak financials and/or a plane with poor resale-ability, a lender will have to hold more capital reserves for that loan, which nets a higher rate,” Francis explains.

“The associated risk can also cause the lender to offer more conservative financing terms to the applicant.”

Because most aircraft are bought through a single-person LLC, the loan must be guaranteed by a person or entity with the requisite credit to underwrite the loan, says Ford von Weise, CEO of Sankaty Jet Capital. The credit quality of this ‘guarantor’ is the most important factor, he adds.

While a lower loan-to-value may impact the overall cost of financing, “the ultimate risk rating of the underlying guarantor determines the amount of [collateral] to be held in reserve for that loan, which has a large impact on the underlying cost of capital to the lender,” von Weise explains.

Read full article here

This article was originally published by AvBuyer on March 11, 2026.

Contact Information:   
 

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

Chris Carter
chris@jetxfinancial.com
(813) 344-5421

NAFA Welcomes New Member: JetX Financial Solutions

Edgewater, MD — March 3, 2026 - The National Aircraft Finance Association (NAFA) is proud to announce that JetX Financial Solutions has joined its distinguished network of business and general aviation finance professionals.

NAFA welcomes JetX Financial Solutions. "We are pleased to welcome JetX to our network,” said Bryan Byers, NAFA President. “We expect their proficiency in customized financing will significantly contribute to the knowledge base and resources accessible to all NAFA members."

JetX Financial Solutions is an alternative private aircraft lender specializing in customized financing for transactions that fall outside traditional banking parameters. We provide finance leases, asset-based loans, and advisory services for both pre-owned and new aircraft, helping buyers, sellers, and brokers close deals with confidence. With deep aviation expertise and a hands-on approach, we design financing structures around real-world aircraft operations—not generic lending models—reducing risk and removing friction at every step.

"We're excited to join the National Aircraft Finance Association," said Chris Carter, VP of JetX. "Our focus is on delivering flexible, tailored financing for deals that fall outside traditional bank credit and underwriting boxes. NAFA membership connects us with industry leaders and expands our network of trusted partners, allowing us to better serve clients and close more deals with confidence. We look forward to contributing our expertise and learning from the broader aviation finance community."

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 Mike Smith, President of Scope Aircraft Finance, shares his latest article in Plane Truth.

As we move further into 2026, I’ve spent some time during my travels reflecting on where we can provide the most value through our monthly Plane Truth finance posts. I’ve been financing aircraft since 2011, and this segment of the industry has always fascinated me. ‍

As lenders, we have a front-row seat to so many cool areas of the industry, and by talking to our borrowers, we’re able to learn a lot about how the nation’s economy actually runs. ‍

For the rest of 2026, my goal is to provide various updates on a regular cadence through our Plane Truth posts.‍

Quarterly, we’ll review industry interest rate conditions, informed by actions (or inactions) by the Federal Reserve, along with a review of the yield curve. ‍

We’ll also take a quarterly look at macro transaction activity, which shows us how strong the market appears to be. Then, we’ll take a quarterly review of what interesting anecdotes we’re seeing out there. ‍

This month, I wanted to briefly comment on what we’ve seen in our loan fundings so far this year. 

Read full article here

This article was originally published in Plane Truth, Issue #17, on February 19, 2026.

The aviation finance industry underwent significant transformation in 2025, including the sizable impact of export controls and economic sanctions, a robust recovery in passenger travel, and continued activity in airline restructurings and liquidations.

Holland & Knight's Aircraft Finance Team has published an article series that reviews recent aviation finance trends and provides a glimpse of what's to come for manufacturers, airlines, lenders and other key players.

Articles and their focus areas are:

• Aviation Finance: 2025 Sanctions Update and 2026 Outlook. By Senior Counsel Cynthia Liu, the article reviews the effects of sanctions and export control restrictions, China military end user restrictions and the lifting of sanctions on Syria.
• Aviation Outlook. From Partner William R. Coleman, this article examines market recovery and drivers of growth, operational and financial challenges, and sustainability and digital transformation.
• 2025 Aviation Bankruptcy Update. Written by Partners Barbra R. Parlin and Brian Smith, the article details recent noteworthy U.S. and international airline Chapter 11 proceedings and restructurings.

The publication also shares how our Aviation Finance attorneys can help stakeholders navigate the ongoing changes in the industry.

Read the full publication here

This publication was originally published by Holland & Knight in Insights - January/February 2026 on February 5, 2026.

NAFA member FLYING Finance discusses how to avoid aircraft financing pitfalls.

The aviation finance industry is shrouded in misconceptions, even among seasoned professionals and pilots. These myths can and do lead to poor strategic decisions and missed opportunities.

Let’s debunk the most common fallacies that continue to circulate in boardrooms and financing negotiations.

Myth 1: Aircraft Always Depreciate Predictably

Many buyers, particularly in business aviation, have a notion that aircraft depreciation follows a neat, linear pattern that can be plugged into spreadsheets with confidence. The reality is far more nuanced.

While certain aircraft types do follow relatively predictable curves, depreciation is heavily influenced by factors that differ from other classes of asset. Regulatory changes, fuel price volatility, and demand for private aviation mean that many models do not follow a standard depreciation curve in the slightest. 

Smart buyers and aviation financiers build flexibility into their models and maintain healthy skepticism about any depreciation schedule that looks too clean.

Read full article here

This article was originally published by FLYING Finance on January 10, 2026.

NAFA member, Mike Smith, President of Scope Aircraft Finance, looks back at a volatile 2025—tariffs, tax policy, and rate shifts—and explains what those lessons mean for aircraft financing as owners head into an uncertain but opportunity-filled 2026.

As we push toward the end of January, I want to wish you one last “happy new year!” from Columbus, Ohio. The Scope team is mostly recovered from what turned out to be a very strong 2025. Looking back at the year, it’s incredible to see how it ended after how it started.‍

If you go into the way-back machine, you’d remember that, at the start of 2025, there was tremendous optimism that the Trump administration was going to jump-start the economy with favorable tax policy, and in our industry, that meant a rapid return to the accelerated depreciation schedules of yesteryear. The industry saw a lot of 2024 closing volume pull forward into 2025 which resulted in a busy January for all.‍

As the calendar turned to spring, we all pulled out our high school US history books to remember what the word “tariff” meant and how it worked. Second quarter was a quarter of learning and navigating as tariff policy changed daily, with a new dynamic of including aircraft transactions.

Read full article here

This article was originally published by The Plane Truth on January 22, 2026.

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.

Greetings from a busy year-end closing office at Scope Aircraft Finance!‍

Normally, after the clock strikes midnight on December 31, we can all breathe a collective sigh of relief. The busy pendulum swings to a slower pace in the first quarter. That trend changed last year with the anticipation of tax law changes under the incoming Trump administration.‍

The January slowdown we’re accustomed to didn’t occur, as several transactions were delayed into January fundings to take advantage of anticipated tax opportunities in 2025.‍

Halfway through December, we’re seeing the same volume trend for the second year in a row. Not only are we pacing for a record December, but we also have a strong January closing pipeline. While we always welcome the opportunity to serve our customers and help with whatever closing timeline they need, this “year-end plus January” closing volume does seem to be a new trend across the industry, and something we’re still adapting to.

Read full article here

This Scope Aircraft Finance article was originally published in The Plane Truth on December 17, 2025.

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.

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. 

Contact Information:

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

Mark Bearden
mark.bearden@faef.com
585.643.3296
 

NAFA Welcomes New Member: First American Equipment Finance
 

Edgewater, MD — June 3, 2025 - The National Aircraft Finance Association (NAFA) is proud to announce that First American Equipment Finance has joined its distinguished network of aviation professionals.

NAFA President Bryan Byers comments, "We are confident that the unique expertise that First American Equipment Finance brings will be incredibly valuable to our association and will further strengthen our collective ability to navigate the complexities of aircraft finance."

First American Equipment Finance is dedicated to being the best company to work with and the best company to work for, guiding clients through complex equipment finance transactions. Their commitment to providing exceptional service and fostering a positive work environment aligns with NAFA’s mission to support excellence and integrity in the finance industry. With expertise in equipment financing solutions, as well as U.S.-registered, new, pre-owned, and fractional aircraft financing, First American will enrich the NAFA community with practical knowledge and innovative thinking.

NAFA looks forward to the unique perspectives First American will bring as the association continues to support innovation and excellence in the finance industry.

"Our NAFA membership is one of several important actions we are taking this year to increase our investment in supporting the private aviation industry, and we are extremely excited to contribute to the NAFA community," says Mark Bearden, Senior Vice President and Head of First American's Bank Support Division.
 

About First American Equipment Finance:

First American Equipment Finance is one of the of the country’s largest equipment finance companies, providing leasing and financing to established commercial borrowers throughout the United States and Canada. First American specializes in aircraft financing, offering highly competitive solutions for fractional aircraft shares and full aircraft ownership. The company’s experienced team expertly navigates the entire financing process, providing strategic guidance while evaluating cash flow, tax implications, and borrowing options to secure the most effective solution for each client’s needs. As a wholly owned subsidiary of City National Bank, an RBC company, First American can offer clients competitive rates while delivering unique value through focused, industry-aligned teams. For more information, visit www.faef.com/city-national.

About City National:

City National Bank, a subsidiary of Royal Bank of Canada, is the largest bank headquartered in Los Angeles with $93 billion in assets as of April 30, 2025. Founded in 1954, City National provides personalized banking, investment and trust services in select markets including Los Angeles, Orange County, San Diego, the San Francisco Bay Area, New York City, Nashville, Atlanta, Delaware, Las Vegas, Washington D.C. and Miami.* In addition, the company and its investment affiliates manage or administer $101 billion in client investment assets. City National is dedicated to strengthening communities, and in 2024 alone, the company made charitable contributions of nearly $10 million in charitable contributions to nonprofits that support the communities it serves.

*City National Bank does business in Miami and the state of Florida as CN Bank.
 

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.

FOR IMMEDIATE RELEASE 
April 7, 2025
 

CONTACT INFORMATION 

Tracey Cheek  
TLC@NAFA.aero  
405.285.7005 
 

Perry Bridges 
414.316.6000 
perry@cofinance.com 
 

NAFA Welcomes New Member: Co Finance Ventures, Inc. 

Edgewater, MD (April 7, 2025) – The National Aircraft Finance Association (“NAFA”) is excited to announce that Co Finance Ventures, Inc. (“Co Finance”) has joined its distinguished network of aviation professionals. 

NAFA’s network has grown consistently over the years—comprised of the finest aircraft lenders and product and service providers in the industry, allowing members to access and work with every aspect of the aircraft finance community. Collectively, NAFA’s members support the financing of general and business aviation worldwide.  

“NAFA members facilitate the financing of general and business aviation aircraft on a global scale,” said Ed Medici, NAFA President. “We welcome and support Co Finance’s services that play a role in advancing the interests of NAFA members within the aviation industry.”  

"Co Finance is a new entrant to the aviation finance space and unique at that,” comments Perry Bridges, Chief Operating Officer at Co Finance. “Co-ownership of aircraft has grown exponentially in the last several years. Our mission is to provide a finance solution for those co-owners who prefer to utilize their capital in other ways. While Co Finance is a new entity, I've financed airplanes for a good portion of my career. I have great respect for the NAFA membership group and hope to be able to continue great collaboration to grow our business in a segment—co-ownership aircraft finance—that is not well supported.” 
 

About Co Finance Ventures, Inc.: 
At Co Finance, our mission is to blaze a trail as the premier service provider of aviation financing for co-ownership transactions. We leverage relationships with industry contacts—from banks to lawyers, brokers, and more—to streamline the financing of your co-owned aircraft. The services we offer throughout this process are designed to make financing effortless. 

To learn more, contact Perry Bridges at perry@cofinance.com.  

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: 
 

Tracey Cheek  
TLC@NAFA.aero  
405.285.7005 
 

Victorine Fleishman 
marketing@avtaxadvisors.com 

Jeremiah T. Sailor 
Jeremiah@AvTaxAdvisors.com  
https://avtaxadvisors.com  
 

NAFA Welcomes New Member: AvTax Advisors, PLLC 

Edgewater, MD — March 31, 2025 - The National Aircraft Finance Association (NAFA) is excited to announce that AvTax Advisors, PLLC, has joined its distinguished network of aviation professionals. 

 “AvTax Advisors, PLLC, joining NAFA is a step forward in advancing our mission to improve and facilitate the financing process to support aircraft buyers,” said Ed Medici, NAFA President. We welcome AvTax Advisors, PLLC, to our growing organization and enhancing opportunities for all our members.”  

Based in Tampa, Florida, AvTax Advisors, PLLC is a leading aviation and tax law firm specializing in business aviation transactions and tax planning. With extensive experience structuring aircraft purchases, sales, and ownership models, they help clients navigate complex federal and state tax regulations while ensuring FAA compliance. Their services include tax exemption planning, entity formation, regulatory compliance, and audit representation. By providing tailored, strategic legal guidance, AvTax Advisors, PLLC helps aircraft owners and businesses minimize tax liability and optimize operational efficiency. NAFA is proud to welcome AvTax Advisors, PLLC to our network.  
 

About AvTax Advisors, PLLC: 
AvTax Advisors, PLLC  is an aviation and tax law firm in Tampa, Florida with a Clear, Accurate, and Vast Understanding of Business Aviation & Tax Law.  

Owning and operating a private aircraft offers unparalleled convenience and flexibility, but it also involves complex tax considerations. In planning and structuring thousands of aircraft transactions, AvTax Advisors, PLLC has marshaled extensive knowledge of federal aviation, tax and regulatory issues. We are acknowledged industry leaders with the ability to handle aviation matters from start to finish. Clients engage us at the beginning of their aircraft acquisition journey, and we work alongside brokers and technical experts to negotiate and structure deals with the clients' best interests in mind. Our exceptional aviation tax skills enable us to fill a dual role as we advise on aircraft ownership and operating structures that will minimize liability for state sales tax and property tax, and maximize income tax deductions while ensuring FAA compliance. 

At AvTax Advisors, we fly above tax and regulatory complexities to provide client-centered solutions. We offer flexible engagement terms to provide tailored, strategic legal guidance at an affordable cost. Whether you need tax planning, compliance support, or advice on transactions, you can depend on AvTax Advisors, PLLC—Your Trusted Co-Pilot in Aviation Tax Planning and Compliance.  

To learn more, visit http://www.avtaxadvisors.com.

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, David G. Mayer, Partner with Shackelford, McKinley & Norton, discusses how the ever-shifting U.S. strategy adds complexity and costs to business aircraft transactions.

The new or threatened tariffs announced by the Trump Administration and other countries may cost more than you realize when buying and financing private aircraft. The on-again, off-again U.S. tariff activity has roiled the U.S. financial markets, triggered retaliatory tariffs, alarmed aircraft stakeholders, and created wide uncertainty in global trade.

The Trump Administration has imposed, modified, and/or delayed the imposition of tariffs on specific countries to achieve certain foreign policy and economic goals. To stop massive shipments of fentanyl into the U.S., the Administration has imposed tariffs on Mexico and Canada and a 20 percent tariff on Chinese-origin goods to make U.S.-origin products more price competitive with cheaper non-U.S. origin metal sellers. This tariff may affect the metals used by aircraft manufacturers (OEMs), repair facilities, and their suppliers.

Transacting Steps and Process

Purchasing an aircraft without addressing tariffs is not an option. It is imperative to rely on customs brokers, lawyers and other import/export experts in deal teams to conduct a real-time analysis of potential tariffs, including direct and retaliatory tariffs from the U.S., Canada, or Mexico.

Their objectives should include determining the application, percentage, and effective dates of the tariffs on the aircraft being purchased. Second, they should calculate the tariff based on the purchase price if tariffs apply. The analysis should consider such tariff-based factors as the country of origin or transformation of an aircraft or specific product codes under the U.S. Harmonized Tariff Schedule (HTSUS). HTSUS is the primary resource for identifying tariff rates on aircraft imported into the United States. Third, they should try to structure the importation timing and terms to minimize the tariff cost.

As a byproduct of tariffs, the parties should brace for higher transaction costs and processing delays from the pre-tariff duty-free norm. The deal team will also negotiate purchase or financing documentation and interact with U.S. Customs and Border Protection officials.

Read full article here

This article was originally published by AIN on March 14, 2025.