NAFA member David M. Hernandez, Shareholder and member of Vedder's Global Transportation Finance team, shares his latest article on buying a business aircraft in a seller's market.
When demand for quality business aircraft exceeds available inventory, buyers face a difficult tradeoff: move too slowly and lose the aircraft; move too quickly and inherit risks that can substantially increase the true acquisition cost.
A disciplined and well-prepared buyer can still compete effectively, and potentially save millions of dollars. The objective is not to eliminate every risk, but to identify, quantify and allocate material risks before the deposit becomes nonrefundable and the aircraft is accepted. The first step in the acquisition process is to assemble an experienced aviation transaction team.
Assemble an experienced aviation transaction team
A business aircraft acquisition is not simply a purchase of equipment. It is a coordinated technical, operational, financial and legal transaction. In a seller’s market—where accelerated timelines leave little room to correct mistakes—experienced advisers can help the buyer move quickly without overlooking material risks.
The buyer’s team should generally include:
- Aviation transaction attorney. An attorney with aircraft-transaction experience can negotiate the letter of intent and purchase agreement, define inspection and delivery obligations, coordinate escrow and title matters, allocate risk and address registration, tax, regulatory and cross-border requirements.
- Aircraft broker or acquisition adviser. A qualified broker can identify suitable aircraft, provide current market intelligence, evaluate comparable transactions, assess asking prices and negotiate commercial terms. The broker should understand the buyer’s operational mission rather than focusing solely on completing a sale.
- Aircraft management company. A management company can evaluate whether the aircraft fits the buyer’s intended operations and help develop realistic budgets for crew, training, insurance, hangar, maintenance and administration. It can also coordinate entry into service and identify operational issues that should be addressed before closing.
- Independent maintenance or technical adviser. A model-experienced technical representative can review records, develop the pre-purchase inspection scope, oversee the inspection facility, analyze discrepancies and projected maintenance, and confirm that agreed repairs have been properly completed. This adviser is particularly important when the seller seeks to limit inspection rights.
- Aircraft finance adviser or lender, if financing is required. Early finance involvement can identify appraisal, equity, ownership-structure, insurance and closing requirements before they disrupt the transaction. Financing terms should be coordinated with the inspection schedule, deposit provisions and anticipated delivery date.
Depending on the transaction, the team may also include tax advisers, insurance professionals, title and escrow specialists, customs brokers and local counsel in each relevant jurisdiction.
This article was originally published by Vedder on July 30, 2026.