Looking to finance an aircraft acquisition? How might your intended mission impact the deal you’re offered? Graham Jarvis gets the lowdown from a selection of industry experts…
Simply put, an aircraft owner’s mission tells the story of how and where an aircraft will be used. For example, it indicates the demand that will be put on the aircraft in terms of how many hours it is expected to be flown, and by whom.
For underwriting as well as for financing purposes, there’s also a need to consider mission risk, including collateral risk, operational risk, jurisdictional and regulatory risk.
According to Tripp Thurston, CFO & Group President of Firecrown Media & COO at FLYING Finance, “a Part 91 personal or private business use mission – where the aircraft will be flown by an experienced pilot, remain within a defined geography and the expected hours of less than six hours per week (300 hours annually) – usually tells a lender that the aircraft is likely to remain in pristine condition for a longer duration.
“In contrast,” he adds, “Part 135 charter operations, small cargo or passenger airlines, and flight schools (Part 141 in particular) will have much higher usage on the airframe, and the pilot may or may not be making the smoothest landings. So, lenders take into account how the airframe will be treated.”
Engine time between overhaul (TBO) is reached more quickly with higher hour use cases, meaning that an airframe will depreciate quicker too.
“Comparing these two scenarios, a lender is likely to offer a longer payment schedule, or amortization, for the lower use Part 91 aircraft purchase, and a shorter amortization for the higher use charter or flight school operation,” Thurston reveals.
Paul Sykes, Director of Originations of EMEA & APAC at JSSI Aviation Capital, claims that highly configured aircraft are a challenge for financiers. “Specialized equipment often drives up the purchase price, but some lenders assign it little or no residual value, and sometimes it can even have a negative effect on value.”
Some configurations may require structural changes, such as cutting into the fuselage. They can be dealbreakers because they alter the structural integrity of the aircraft – including, Sykes says, any potential corrosion points and structural risks.
“For special mission assets like medevac or surveillance, some specialist lessors will lend, but their comfort comes from the underlying operating contracts rather than the aircraft itself.” Nevertheless, Sykes warns, this leaves the problem that if those contracts aren’t renewed, “they can quickly find themselves holding a valuable, heavily amortized asset with limited remarketing options.”
This article was originally published by AvBuyer on May 14, 2026.