owning & operating an aircraft

NAFA member Tripp Thurston, Chief Operating Officer at FLYING Finance, shares his latest article.

The business jet is the tool. The second hangar is the reason they learned to fly in the first place.

The longer I am in aviation, the more I find two hangar pilots. These are the ones that have the business jet on limited charter with the management company, and a second hangar at the local airstrip. It is the second hangar that catches my attention, because it is the aircraft in that second hangar that sparks the eye twinkling smiles and the rascally grins. The second hangar is not always as brightly lit or even as big, but it is where you find the aircraft the owner actually loves to fly: a Carbon Cub FX-3 and an RV-14 he built during the pandemic.

This is not an unusual story anymore. It is a generation.

The Aircraft You Show Off and the One You Actually Fly

There is a class of pilot — successful, accomplished, the kind whose company uses the jet for legitimate business travel — who keeps a second aircraft that no flight department will touch, that no scheduler will log, that exists entirely outside the operational framework of the primary aviation asset. It is the aircraft they fly when the office is not calling.

Sometimes it is a Carbon Cub fully optioned north of $400,000. Sometimes it is an SR22 left over from before the company grew to the point where a Pilatus, EPIC or Citation made more sense. Sometimes it is a Van’s RV-14 that lives in a T-hangar at a grass strip forty minutes from home. Sometimes it is a restored Bonanza that belonged to a grandfather.

What unifies them is not the aircraft type. It is what the aircraft represents. The jet is the tool. The other one is the reason they learned to fly in the first place. Welcome back to FLYING.

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This article was originally published by FLYING Finance in 2026.

NAFA member David G. Mayer, law partner in the Global Aviation Group at Shackelford, McKinley & Norton, LLP, shares his latest article in AINsight about conducting due diligence when finding a firm to operate your business aircraft on your behalf.

Not all aircraft management companies are created equal. Most of them follow the rules while others break them—at your peril. As enterprises for profit, management companies almost always try to win your business, but can they also earn your trust?

What Management Companies Do

Ranging in fleet size from one to more than 300 aircraft, management companies (managers) use different business models, manage a variety of aircraft types, and offer varying scopes of service, all purportedly for your convenience, safety, and comfort. They can earn revenue from management fees and, if permitted, air charter flights.

Perhaps the most important function of managers is selecting, hiring, and/or training crew to fly owner and charter trips. The pilots may develop a unique bond with the owner, which a manager can foster. Managers provide many other services, which include assisting with hangar searches and lease negotiations; administering engine maintenance programs; arranging insurance coverage under their fleet policy; directing maintenance, inspections, and repairs; interacting with the FAA; keeping detailed flight records; preparing budgets; paying vendors; distributing your share of charter revenue; and directing logistics for each trip. 

Regulatory Foundation: The Impact of Selecting a Manager

Managers involved in private aviation operations function mainly in two categories of the Federal Aviation Regulations (FARs)—Part 91 and Part 135.

Part 91 operations. Certain managers oversee aircraft that operate only under Part 91, which generally includes rules for non-commercial private flight operations, under which an owner or operator generally cannot be reimbursed for business or personal flights, with limited exceptions under FAR 91.501. These managers do not operate your aircraft, although they may source pilots. Under Part 91, one qualified entity or individual acts as the aircraft operator and thereby exercises operational control, the authority to “initiate, conduct, and terminate” the flight.

Separately, another strong Part 91 option involves self-managing aircraft for a business enterprise with services dedicated to the enterprise, often called a corporate flight department. Managers may assist companies that have these departments but need an extra lift with their aircraft or fleet needs.

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This article was originally published in AINsight on July 10, 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 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.

Read full article here

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.

Read full article here

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

NAFA member SOLJETS shares their latest article on steps to take before selling or upgrading your aircraft.

Selling or upgrading a private jet is a major financial decision, and for many owners, it is also a highly personal one. Whether your aircraft no longer fits your mission profile, your travel needs have changed, or you are ready to move into a newer platform, the process requires careful preparation. The most successful transactions rarely happen by chance. They happen when owners take the right steps before bringing their aircraft to market.‍

Before listing your jet or beginning the search for an upgrade, here are several important steps every aircraft owner should consider.

‍Understand Your Current Mission Needs

‍Before deciding what comes next, take a close look at how you use your aircraft today. Has your typical passenger count changed? Are you flying longer routes? Do you need better runway performance, more cabin space, upgraded avionics, or improved operating efficiency?

‍Many owners begin the upgrade process with a specific aircraft in mind, but the better starting point is your mission profile. A jet that made perfect sense five years ago may no longer be the best fit. By clearly defining your travel patterns, budget, range requirements, and cabin expectations, you can make a more confident decision about whether to sell, upgrade, or hold.

Read full article here

This article was originally published by SOLJETS on July 5, 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.

Read full article here

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

NAFA member Holstein Aviation shares one of their latest blog articles.

Often generated by a tracking program like CAMP, Traxxall, or SierraTrax, a Maintenance Status Sheet is a comprehensive “report card” of an aircraft’s mechanical history and upcoming requirements. It acts as a live ledger, tracking the airframe, engines, and time-limited components against three variables:

• Flight Hours: Total time the aircraft has been in the air.

• Landings/Cycles: The number of takeoffs and landings (critical for engine and structural life).

• Calendar Time: Inspections due every 12, 24, or 48 months, regardless of usage.
   

KEY COMPONENTS OF A STATUS SHEET

When reviewing an aircraft for sale, your aircraft brokerage will typically focus on these five critical sections to determine the asset’s true market position.

1. The “Due List” (Upcoming Tasks)

This is the most scrutinized part of the report. it lists every inspection, task, and part replacement due in the next 12 to 24 months. A “heavy” inspection due in 50 hours could represent a significant discount in the final sale price for aircraft for sale.

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

Business Aviation is a global marketplace, built on international travel and transactions. So how much should your home location impact your choice of registry? Gerrard Cowan asks industry experts to outline the key factors.

While aircraft must be registered with a national register, there’s nothing that legally requires an aircraft to be registered where it is based or where it operates, says Katie Bancroft, Business Aviation Senior Associate at law firm Jaffa & Co. 

Pointing to a rise in the use of such registries as Aruba, the Cayman Islands, Isle of Man and San Marino (among others) in recent years, she adds that the question of which registry to use should be an early one for any owner. 

“In reality, registration is just one element in the overall architecture of an aircraft acquisition,” she highlights. “It must be considered alongside – and in some instances, as an intrinsic part of – other elements of the purchase and operation to ensure that they play out smoothly, efficiently and without unforeseen restrictions or interruptions.” 

If, for example, you’re based in a country with a poor reputation in terms of maintenance, service levels and regulation, it might make sense to look elsewhere, according to Max Hooper, Co-Founder of Corporate Jet Consulting (CJC). 

This strategy gains further support if you face difficulties around aircraft finance and insurance and worry that the registration might hinder day-to-day operations in areas such as crewing and trip planning. “Owners also tend to avoid registering that aircraft where there are unstable governments and weak rule of law,” Hooper adds. 

Read full article here

This article was originally published by AvBuyer on February 16, 2026.

How does 100% bonus depreciation work and what should you know to avoid a significant aircraft buyer incentive turning into a tax nightmare? Gerrard Cowan learns more from a selection of industry insiders.

While it’s well known that the One Big Beautiful Bill Act (OBBBA) of July 2025 reinstated 100% bonus depreciation, and that this offers significant tax benefits to business aircraft buyers, there are several key requirements for buyers of business aircraft to keep in mind before reaping the benefits.

In essence, bonus depreciation allows aircraft owners – businesses or individuals – to deduct a percentage of their aircraft from their taxable income in the year in which the aircraft is placed into service. The bonus depreciation percentage has varied in recent years, but the OBBBA reinstated the 100% level permanently.

This means that if the buyer meets certain requirements, they can deduct the entire purchase price of that aircraft from the income on which they pay tax in the year in question. The value can also be spread across several years.

Bonus depreciation applies to both new and used aircraft, and follows the same rules that apply to Modified Accelerated Cost Recovery System (MACRS) depreciation deductions, as opposed to the Alternative Depreciation System (ADS) approach, which sees depreciation occur under a ‘straight line’ method over a longer period of time.

During the entire depreciation period that would have applied under ADS – six years for non-commercial business aircraft and twelve years for commercial aircraft – the aircraft must be used predominantly in the purchaser’s trade or business to be eligible for MACRS, including 100% bonus depreciation, explains Chris Younger, an Aviation & Tax Attorney at HCH Legal.

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

How can aircraft owners ensure they are properly prepared for a Hot-Section Inspection on their aircraft? Gerrard Cowan polled a selection of MRO specialists, engine manufacturers and other industry experts to obtain their best advice.

A private jet engine Hot-Section Inspection (HSI) covers the parts of an engine that are exposed to extreme temperatures. It focuses on such areas as turbine blades, combustion chamber, turbine disks, vane rings, etc., with the aim of finding problems before they can mushroom into serious issues.

Knowing when and what is coming due is the first step to planning a successful event, according to Bill Otte, Engine Service Sales Representative at Duncan Aviation. Multiple factors can impact when events are actually due, he says, including trend data, Service Bulletin status, engine hours and/or engine cycles.

Quality engine maintenance service providers can assist with records research to help operators determine what’s coming due and when. This will also assist with pre-event planning, parts ordering, “and better understanding of what the event might cost," Otte adds.

Operators whose engines are covered by a service contract can expect to have most, if not all, of the costs covered during an event. “However, there can be findings that could be excluded from contact coverage,” Otte warns.

“Foreign Object Damage (FOD) and corrosion are examples. Plan some time to review the service contract to know what is covered.”

Other costs should also be factored in, he says, such as aircraft relocation costs when the work must be completed at a shop. If the work can be done off-site, it’s important to consider technician travel costs, expenses, shipping costs, and the labor to remove and install the engine as needed. Again, some service contracts might cover some of these costs.

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This article was originally published by AvBuyer on September 22, 2025.

For international aircraft deals, the need to conduct ‘Know Your Customer’ due diligence is well known. But some aspects of KYC may be less well understood by intermediates, buyers and sellers, AvBuyer's Chris Kjelgaard learns...

Every aviation industry professional involved in transacting an international purchase or lease of a business or private aircraft to or from North America or Europe is aware that substantial due diligence must be performed to satisfy exhaustive ‘Know Your Customer’ (KYC) requirements.

A forest of KYC regulations now exists globally. The rules have been developed over decades, with input from US, EU and other government departments and agencies to combat international crimes that include money laundering, bribery and corruption, terrorist financing, fraud, illegal arms exports and other export and import infractions.

In recent times, imposition of international sanctions by the NATO allies and cooperating nations against Russia, Iran, North Korea and other rogue nations (the US also includes Cuba and Venezuela in its list) has lent considerable further importance and complexity to the KYC due-diligence effort.

Much of the international KYC effort is collaborative, many different countries’ banking systems and regulatory authorities cooperating to make the sources, destinations and ultimate purposes of international money flows as transparent as possible.

But for aircraft buyers, sellers and intermediaries – brokers, dealers and aircraft managers, for instance – in Business Aviation’s dominant US market to assume that KYC and anti-money laundering (AML) rules and standards worldwide are the same as those of the US Government would be a mistake.

It is a mistake that can lead to gaps in KYC and AML due-diligence compliance when preparing to conduct an international aircraft transaction, according to aviation lawyer Forrest Owens, Principal of The Law Firm of L. Forrest Owens P.A. dba Aviation Legal Counsel.

If the due-diligence effort performed for an international deal doesn’t take account of any differences in the KYC/AML standards of the different jurisdictions involved, the transaction risks violating US law, which Owens emphasizes applies extraterritorially in aircraft deals involving US assets.

“A non-US party vetted under lax foreign rules might not meet US requirements,” Owens highlights.

That is just one of several major ‘Gotchas’ that can cause a planned international aircraft sale/acquisition or lease to flounder – not forgetting that KYC principles and due-diligence requirements also apply to aircraft deals conducted domestically within the US and other nations.

Read full article here

This article was originally published by AvBuyer on August 4, 2025.

You’ve decided to buy a business aircraft – what now? Gerrard Cowan asks industry experts to outline the key questions for prospective buyers before they make their offer on a business airplane...

The precise issues to cover will depend on the aircraft buyer involved and the nature of their requirements. Nevertheless, there are several key aspects that anyone who’s interested in acquiring a business aircraft needs to consider.

Following are five key questions all business aircraft buyers should ask before making an offer on an aircraft of interest, according to a selection of industry professionals...

1. Is it the Right Aircraft for Me?

While it can be very easy to get caught up with an aircraft’s ‘ramp appeal’, the first and most critical question to ask yourself is ‘What’s my mission?’, according to Casey Miller, President of Latitude 33 Aviation.

Ramp appeal will soon fade if the aircraft is not capable of efficiently flying the mission needs it was purchased to fulfil;. Equally, without keeping a firm handle on your flying needs, it is possible to overpay for a larger and more capable plane than you need.

“You want a jet that can fulfill at least 80% of your typical flight needs. If you’re chasing that extra 20%, you might end up with a larger, more expensive aircraft than you truly require,” Miller warns.

Take the example of a US buyer whose planned flights are mostly domestic (say 80%), with only occasional need (20%) for long-range flights with high-density seating requirements.

“Purchasing a plane that can also accomplish the latter will exponentially increase the acquisition and annual operating costs,” he highlights. “Instead, purchase the plane that is capable of your 80%, and charter other planes to accomplish the 20% - you will be far better off financially.”

It is wasteful to “buy a large Gulfstream if you are just hopping around local airports, even if you have the funds to buy one,” Steve Rogers, Managing Director of Aradian Aviation, argues.

By the same token, it is no good having something that lacks the range for longer trips if you will need them, even occasionally. “But how often are you going to do the longer trips? You can always stop for fuel if they are just once or so a month.”

Moreover, a potential aircraft owner should assess how many hours they’ve flown over the preceding 12-24 months and assess whether this is expected to change, according to Max Hooper, Co-Founder at Corporate Jet Consulting (CJC).

And they should look for any trends in terms of the distance flown or the number of passengers they typically carry. “Straight away this will narrow the number of aircraft which could suit their mission profile,” he notes.

Keller Laseter, Chief Commercial Officer at FLYING Finance, suggests buyers should analyze such details as the typical routes they plan to fly, passenger capacity requirements, runway accessibility and range.

“If the jet cannot accommodate their primary travel demands efficiently, it might lead to operational challenges, or unnecessary expenses (such as chartering), or having to go to an airport further away that meets the performance of the aircraft being used,” he warns.

Read full article here

This article was originally published by AvBuyer on February 3, 2025.

Discover more about how business aircraft short-term leases work, and who they suit the best. Gerrard Cowan shares insights from the industry’s top experts.

Short-term aircraft leases can be a good option for aircraft owners in a range of scenarios. But how can you ensure it’s the right move for your needs, and what are the important questions to ask?

There is no uniform definition of a short-term lease, according to Forrest Owens, Founder of Aviation Legal Counsel and a board member at the Global Licensed Aircraft Dealer Association (GLADA). However, he usually considers a lease to be ‘short-term’ when the timescale involved is around a year or less in duration.

If operated under Part 91 regulations, they should be ‘dry’ leases, he notes, meaning only the aircraft is provided, with the lessee responsible for providing the fuel, crew, and so on. The lessee must assume ‘operational control’ of the aircraft, with short-term leases for large aircraft subject to ‘Truth in Leasing’ requirements.

In the US, a permitted 'wet lease' - in which the lessor also provides crew etc - is a charter arrangement under FAR Part 135.¹ According to Owens, short-term leases can be motivated by a range of factors, including seasonal travel needs, enabling increased travel during peak business seasons or events without the capital commitment necessary for aircraft ownership. 

The arrangement could also provide flexibility for short-term projects, perhaps for businesses expanding into new regions or markets.

There could be a range of financial motivations, Owens adds. For instance, leasing costs can be categorized as operational expenses, which may offer tax advantages compared to owning an aircraft. While depreciation is often a motive for aircraft ownership, not all taxpayers can take full advantage, he notes.

Leasing could also help with balance sheet optimization, keeping the aircraft off the balance sheet and improving financial ratios like debt-to-equity.

“During the financial crisis of 2008 and for a few years thereafter, it was routine for companies to seek to shift aircraft off their balance sheets so that their company would not ‘own’ an aircraft,” Owens notes. “However, the C-suite executives still wanted the advantages which private aircraft provide.”

More broadly, the approach can help operators avoid a long-term financial commitment. Short-term leases are less financially constraining, allowing owners/operators to avoid large capital outlays or extended lease obligations.

“I have had numerous clients pursue a short-term lease arrangement for an aircraft for a discrete period or project,” Owens says, adding that for others, a short-term lease might offer the ability to ‘try before you buy’.

“Aircraft operators/lessees lease to evaluate the suitability of a specific aircraft model or configuration before committing to a purchase.”

Read full article here

This article was originally published by AvBuyer on January 20, 2025.