Financing is an integral part of many aircraft acquisitions. While the current availability of capital is regarded by some as plentiful, accessing it in today’s market may be a challenge. Unlike as in even the recent past, only those institutions with specific, in-depth knowledge of aircraft financing structures and asset values may be willing and able to fund your transaction.
For the fractional buyer, financing has its own unique set of challenges, as lenders likely are more cautious when more than one entity owns an undivided interest in the asset.
This makes selecting the right financing partner all the more critical.
Or, perhaps because of the volatility of aircraft values during the past few years, you may have considered leasing instead – a move that may allow you to retain some of the asset’s depreciation benefits, with all risk of residual values transferred to the leasing company. Even flight departments operated by investment grade companies – entities that have traditionally paid cash for their aircraft – are now actively pursuing aircraft leasing.
When considering financing the acquisition of a whole aircraft or a fractional share, or leasing, you’ll find the most up-to-date information to make informed decisions in the pages of Business Aviation Advisor and here on our website.