buying an aircraft

NAFA member Tripp Thurston, CFO and Group President of Firecrown Media and COO of FLYING Finance, shares part one in his three-part article series.

There is more to the latest GAMA report than the top-line number shows.

GAMA’s second-quarter 2026 shipment report landed September 3, and the headline number is fine: 1,458 airplanes shipped through the first half of the year, up modestly from 2025’s pace, with piston deliveries alone running at 786 units year-to-date.

But the unit count is the least interesting thing in this report. The more useful question is what buyers are actually choosing once they show up with a checkbook, and the data is plain on that point: the market is moving upmarket, and it’s moving faster than most people building financing products for it have adjusted to.

Beechcraft Just Told You Where This Is Going

In November 2025, Textron Aviation announced it would end production of the Beechcraft Bonanza G36 and Baron G58, two of the longest-running nameplates in general aviation, with more than 24,000 combined deliveries since launch. The official reason was a sustained sales decline and a decision to redirect resources toward the Beechcraft Denali, the single-engine turboprop that’s been in development since 2016 and is now sliding toward first deliveries this year following the GE Catalyst engine’s February 2025 certification.

The GAMA numbers make the case better than the press release did. Bonanza and Baron shipments combined for exactly two units in Q1 2026 and two more in Q2, four airplanes, worldwide, across a full six months, for a platform that once anchored Beechcraft’s piston lineup. That’s not a soft quarter. That’s a company that has already, functionally, stopped building these airplanes and is running out remaining orders while it waits for Denali certification to clear.

The trade being made is stark by price alone. A Bonanza or Baron new-build sold somewhere in the neighborhood of $1 million to $1.3 million depending on configuration. The Denali is expected to list around $6.4 million to $6.6 million, call it five times the price, for a buyer moving from piston to single-engine turboprop performance. Textron isn’t just retiring two old airframes; it’s reallocating its entire piston-adjacent product investment toward a buyer who can write a much bigger check. That’s premiumization in one company’s product roadmap, and it’s not unique to Beechcraft. It’s the same logic playing out across nearly every OEM’s shipment mix this quarter.

Where This Actually Started, And Why It Isn’t Reversing

It’s worth asking whether this is a genuinely new phenomenon or the continuation of something that’s been building for a while, because the answer changes how you should underwrite around it. Our read: premiumization is largely a COVID-era pivot that never unwound, and the clearest way to see that is to look at what happened in adjacent industries facing the identical supply-and-demand math at the identical moment.

Start with the mechanism. Through 2020 and into 2021, general aviation, like automotive and marine, saw a genuine surge in demand for personal, private transportation as buyers sought alternatives to shared and commercial travel, arriving right as global supply chains for engines, avionics, semiconductors, and raw materials seized up. That combination forced every manufacturer with capacity-constrained production into the same decision: when you can only build a fixed number of units regardless of demand, you build the ones that carry the best margin per constrained production slot. Selling a $6 million turboprop instead of a $1.2 million piston single, out of the same limited factory capacity, isn’t a discretionary choice at that point. It is a strategic business decision to maximize yield.

The automotive industry ran this exact playbook in the open, and it’s well documented. During the 2021 to 2022 chip shortage, automakers explicitly prioritized truck and SUV production over sedans, because those larger vehicles carry meaningfully better margins for only marginally higher production cost, loaded with technology and premium options that cost little extra to build but support real pricing power.

Read full article here

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

Aviation tax experts discuss who truly benefits from aircraft tax depreciation and the pitfalls buyers often overlook. Here’s what they told Felipe Reisch.

Tax depreciation is often cited as a financial consideration that can influence a business aircraft acquisition. While it has the potential to improve the economics of ownership in certain situations, the reality is often more complex.

The value of depreciation depends on a range of factors, including how the aircraft will be used, the structure of the acquisition, the owner’s broader financial position, and their long-term plans for the asset.

Zeinat Zughayer, Senior Manager of Tax Advocacy and Controversy at Baker Tilly, shares that buyers who are already frequent users of private aviation and plan to hold an aircraft for the long-term are generally the most likely to benefit from depreciation-related tax incentives.

“For example,” she illustrates, “individuals or businesses that currently rely heavily on fractional ownership or charter services and anticipate sustained aircraft usage may be well positioned to realize the benefits of accelerated depreciation.”

For Noah Block, Aircraft Tax Advisor at Aviation Tax Consultants, business owners are most likely to benefit. “Business owners with customers, clients, prospects, or projects in different locations can buy an aircraft, use it to work more efficiently and effectively, and write it off.

“W2 employees and retirees will see little practical advantage.”

Letisha D. Sailor, Founder & Managing Member at AvTax Advisors, agrees. Those likely to benefit from these incentives are profitable businesses that can maintain sufficient business use over several years and are prepared for the true costs of aircraft ownership.

“The profitability of the business is also key,” she notes, “as there will be ongoing aircraft operating expenses, both fixed and variable. The ongoing costs of owning and operating an aircraft can be substantial – particularly for jet aircraft.”

Read full article here

This article was originally published by AvBuyer on August 27, 2026.

Industry experts discuss with Felipe Reisch how today’s aircraft financing solutions can support a healthier cash flow, greater financial flexibility, and a more strategic long-term aircraft ownership.

Purchasing a business aircraft is often viewed as a significant capital investment, but the way that investment is financed can have implications extending well beyond the acquisition itself. After all, for many buyers, aircraft financing is not just about reducing the upfront cost.

When structured appropriately, aircraft finance can become an important tool for preserving liquidity, supporting business growth, and maintaining greater control over cash flow throughout the ownership cycle.

Don’t Treat Aircraft Finance as a ‘One-Size-Fits-All’ 

There is no universal financing structure that works for every aircraft acquisition. The right solution depends on the buyer’s financial position, operational requirements, ownership objectives and long-term business strategy.

In fact, many aircraft buyers can afford to purchase their plane in cash, but that doesn’t automatically mean cash is the most efficient use of capital, notes Alex Kowtun, Co-Founder at Palm Beach Jets. “Financing can allow the buyer to preserve working capital for operating needs, acquisitions, inventory, hiring, growth initiatives, or reserves for the aircraft itself.”

Hannah Davis, Vice President of Sales, Mid-Atlantic/Southeast US at Global Jet, believes that financing changes the game by transforming a massive, lump-sum capital expenditure into a predictable, structured operating expense.

“By preserving that liquidity, companies maintain the financial flexibility to respond to market opportunities or navigate economic downturns, all while securing the critical business tool they need to grow.”

She argues that buying a business jet outright ties up a large amount of liquid capital in a highly specialized, depreciating asset. “For high-growth companies or corporate flight departments, that capital almost always generates a higher return when it is reinvested back into core business operations, R&D, or strategic acquisitions.”

Steve Olson, Director of Airplane Finance at Commerce Bank, agrees, noting that while some owners choose to use cash or existing credit facilities to acquire an aircraft, financing secured by the aircraft itself can preserve liquidity and maintain borrowing capacity for other strategic investments, acquisitions, or operational needs.

“Because business aircraft are often owned for five to 10 years or more, financing can be structured to align with anticipated ownership periods and the aircraft’s depreciation profile,” he adds. This enables organizations to maintain greater financial flexibility while spreading ownership costs over time in a predictable manner.

Read full article here

This article was originally published by AvBuyer on September 7, 2026.

NAFA member Preston Holland, President and Founder of Prestige Aircraft Financing, shares his latest article about aircraft financing.

The business jet buyer is acutely aware of the interest rate environment.  Whether the core business is commercial real estate, construction, or goods and services, the cost of borrowing is top of mind for growing a company.  That awareness is especially sharp right now given the volatility of the past few quarters.  My goal here is to lay out the core fundamentals of borrowing for corporate aircraft so you have a framework for your decision making.

How Business Jet Rates are Priced

There are a few benchmarks lenders use to determine the pricing of debt on aircraft.  The most popular today is SOFR, which tends to be the most reactive to market movements.  For instance, I had a deal recently that reduced by 20 bps between proposal and closing in the buyer's favor in a matter of thirty days.  To achieve a fixed rate on a SOFR based loan, lenders wil typically use some sort of swap contract index, such as the 5-year SOFR Swap Rate or the ICE Swap Rate.

Another popular benchmark is the 5-year Treasury yield.  The reason for this is that most aircraft transactions are structured as commercial loans with a term of 5 years, with a balloon payment due after the 60th month.  This typically aligns well with the bank's cost of funds regardless of how they actually fund their loans.

Read full article here

This article was originally published in OGARAJETS' The Jet Whisperer, Summer 2026, page 14-15.

NAFA member, Tripp Thurston, Chief Operating Officer of FLYING Finance, gives his take on cash, traditional financing, and the middle ground most affluent buyers never hear about.

I stood with the Diamond Aircraft team at Oshkosh EAA AirVenture 2026 watching a ceremonious signing for a new twin engine DA62. The gentleman could not have beamed brighter as he shook hands with the Premier Aircraft Sales representative next to the sleek contours that epitomize the glider based frame of the DA62. This buyer had waited all summer for the chance to sign this purchase agreement at AirVenture. He was not the only one.

During the week, I saw Cirrus sell three SF50 Vision Jets in one day, and heard how the team at Aerista was on track to eclipse one hundred of these celebrated signings during the single week. The energy behind these sales continues an expanding growth trend for both new piston and new turbine aircraft. It is a particularly special moment to mark this kind of purchase at AirVenture among your closest 734,000 friends. What follows between the purchase agreement and the aircraft delivery may not be nearly as exciting, but it at least should not take away the enthusiasm.

A Capital Decision

One aspect that does seem to come too often with groans is the decision around whether to pay cash for the aircraft, or whether to navigate the often opaque aircraft finance underwriting environment. For some, that choice may feel predetermined. I am not referring to those with enough liquidity for the minimum 15% down payment, where the most feasible way to fill in the principal gap to the purchase price is an aircraft loan. Instead, I am referring to those with excellent credit and enough resources to pay for half, if not the whole aircraft, but who see the prospect of explaining their real estate portfolio or various business ventures as a nonstarter. In the regulated consumer banking industry where aircraft financing for the owner flown market lives, these affluent individuals that make up a large portion of FLYING's readership are penalized by a debt to income underwriting framework that can be inflexible to the aspects of a personal financial statement that comes naturally to the high net worth pilot.

I saw this early on in my career underwriting for private wealth clients at one of the South's largest financial institutions. And later, as I approved multi-million dollar lines and loans for founders and real estate investors, I understood that complexity in how someone makes their money can often be satisfactorily mitigated by the strength found in their net worth. It is this second step in the approach that separates the consumer banker from the private banker, and for owner flown aircraft financing, it separates a hassle from a loan seamlessly closed.

But does that matter? Why not just pay cash? Is there a middle ground — a Goldilocks scenario — that is right for me?

Read full article here

This article was originally published by FLYING Finance in August 2026.

Aviation tax experts discuss who truly benefits from aircraft tax depreciation and the pitfalls buyers often overlook. Here’s what they told Felipe Reisch.

Tax depreciation is often cited as a financial consideration that can influence a business aircraft acquisition. While it has the potential to improve the economics of ownership in certain situations, the reality is often more complex.

The value of depreciation depends on a range of factors, including how the aircraft will be used, the structure of the acquisition, the owner’s broader financial position, and their long-term plans for the asset.

Zeinat Zughayer, Senior Manager of Tax Advocacy and Controversy at Baker Tilly, shares that buyers who are already frequent users of private aviation and plan to hold an aircraft for the long-term are generally the most likely to benefit from depreciation-related tax incentives.

“For example,” she illustrates, “individuals or businesses that currently rely heavily on fractional ownership or charter services and anticipate sustained aircraft usage may be well positioned to realize the benefits of accelerated depreciation.”

For Noah Block, Aircraft Tax Advisor at Aviation Tax Consultants, business owners are most likely to benefit. “Business owners with customers, clients, prospects, or projects in different locations can buy an aircraft, use it to work more efficiently and effectively, and write it off.

“W2 employees and retirees will see little practical advantage.”

Letisha D. Sailor, Founder & Managing Member at AvTax Advisors, agrees. Those likely to benefit from these incentives are profitable businesses that can maintain sufficient business use over several years and are prepared for the true costs of aircraft ownership.

Read full article here

This article was originally published by AvBuyer on August 27, 2026.

NAFA member Chris Lee, President, Aircraft Division at 1st Source Bank, shares his latest article on aircraft acquisitions.

There is an old saying that there are more ways to do something wrong than there are to do it right. Few industries illustrate that reality better than aviation.

Aircraft acquisitions are no exception.

Over the years, I have participated in aviation from nearly every seat imaginable. I have flown aircraft, sold aircraft, financed aircraft, and owned aircraft. Along the way, I have witnessed exceptionally successful acquisition decisions and more than a few that left buyers wondering how they ended up with an aircraft that did not deliver what they expected.

This article is the first in a series designed to help prospective buyers think through the aircraft acquisition process. Not simply to avoid mistakes, but to understand the decision-making framework that successful aircraft owners use.

Read full article here

This article was originally published by AvBuyer in July 2026. 

NAFA member Noah Block, Tax Advisor at Aviation Tax Consultants, shares his latest article about tax mistakes to avoid as a first-time plane buyer.

Purchasing a plane can be an exciting step for a business owner. It can save time, improve access to customers and projects, and create significant tax planning opportunities. However, the tax benefits of aircraft ownership are not automatic.

Many first-time plane buyers have their eyes set on bonus depreciation but overlook the details that determine if they qualify. Before closing on the aircraft, buyers should understand the most common tax mistakes that can create issues later.

1. Buying the Aircraft in the Wrong Entity

One of the first decisions in an aircraft acquisition is determining who or what entity should own the aircraft. Many buyers assume that forming a new LLC to own the plane is always the right answer. While a new LLC is usually created, the member of that LLC is often overlooked.

The structure should consider who will use the aircraft and how the tax deductions will flow through to the taxpayer.

Buying in the wrong entity can create problems with business-use substantiation, passive activity rules, related-party leasing, and the ability to actually use the depreciation deduction.

Read full article here

This article was originally published by Arcadia Jets on August 11, 2026.

NAFA member AOPA Finance shares their latest article on what lenders should look for when approving an aircraft loan.

Aircraft lenders evaluate four key areas: your financial profile, the aircraft you’re purchasing, your flying experience, and the overall risk of the transaction.

From a financial standpoint, lenders focus on income, debt obligations, available liquidity, and credit history. They want to see that you can comfortably manage the aircraft payment along with ownership costs such as insurance, maintenance, fuel, and storage.

The aircraft itself also plays a role in approval. Factors such as aircraft type, number of engines, damage history, and logbook completeness can influence loan terms.  Experimental, rare, or multi-engine aircraft may require different down payments, rates, or
financing structures.

Read full article here

This article was originally published by AOPA Finance on August 4, 2026.

NAFA member Arcadia Jets shares one of their latest articles on aircraft acquisition services.

Aircraft buyers have access to more information today than ever before. Listings, specifications, market reports, and online marketplaces make it easy to begin searching for an aircraft. Yet many buyers quickly discover that information alone does not simplify the decision-making process. In many cases, it creates more questions.

Aircraft acquisition services help bridge the gap between available information and informed decision-making. Rather than simply presenting aircraft options, acquisition professionals help buyers evaluate opportunities through the lens of mission requirements, ownership costs, market conditions, and long-term value. This approach reduces uncertainty while helping buyers focus on opportunities that align with their actual needs rather than assumptions.

At Arcadia Jets, we frequently find that buyers who spend time defining their goals before evaluating aircraft make better decisions and experience fewer surprises after closing.

Read full article here

This article was originally published by Arcadia Jets on July 21, 2026.

NAFA member David G. Mayer, law partner in the Global Aviation Group at Shackelford, McKinley & Norton, LLP, shares his latest article in Business Jet Traveler about aircraft management companies.

Most follow the rules. Beware of those who don't.

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.

Read full article here

This article was originally published in Business Jet Traveler in July 2026.

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.

Read full article here

This article was originally published by Vedder on July 30, 2026.

NAFA member Louis C. Seno, Jr., Executive Director, International Aircraft Dealers Association (IADA) shares his latest article on the private and business jet market.

At our organization's recent spring meeting, one theme came through loud and clear: The business aviation market may be navigating uncertainty, but trust in private and business jet aviation remains remarkably resilient.​

I had the privilege of listening to a panel of aviation finance leaders discuss the forces shaping today’s aircraft transaction environment. Representing banks, asset-based lenders and leasing specialists, they offered different perspectives, but their conclusions were strikingly consistent: Demand remains strong, capital is available and preparation matters more than ever.​

For those of us who have spent decades in business aviation, this moment feels familiar. Our industry has always operated against a backdrop of economic cycles, geopolitical instability and changing market dynamics. As an expert on the private aircraft market, I continue to see private aviation’s appeal to entrepreneurs, corporations and high-net-worth individuals who depend on mobility, efficiency and control.

What’s different today for senior advisors to high-net-worth clients is the complexity of the financing landscape—and the sophistication required to navigate it successfully.​

Read the full article here

This article was originally published by Forbes.com on July 22, 2026.

NAFA member Amanda Applegate, Partner at Soar Aviation Law, shares her latest article about aircraft scarcity.

Usually, during the summer months aircraft transaction volume slows down, causing pre-owned aircraft inventory to increase. Normally, this summer slowdown is helpful during the 4th quarter when transaction volume peaks. However, 2026 inventory levels remain extremely low, particularly for the desirable aircraft models with low aircraft times and cycles. At a recent industry event I attended, many aircraft brokers mentioned how numerous clients looking for good, quality aircraft to purchase  have been unsuccessful in finding anything that matches their search criteria. This aircraft shortage will impact the remainder of 2026 in three important ways.

First, as inventory levels decrease, sellers respond by requiring more seller-friendly terms in transactions such as larger non-refundable deposits, aggressive closing timelines and limiting the scope of pre-purchase inspections. These seller-friendly terms inevitability leave the buyers accepting more risk in the transactions. A strong seller market can turn off aircraft buyers and result in those buyers not moving forward with a transaction or moving into fractional ownership. Fractional programs can offer interim lease solutions which allow for immediate aircraft access while the new aircraft that the buyer purchased a fractional share in is being built.

Read full article here

This article was originally published by Soar Aviation Law on July 14, 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.

Read full article here

This article was originally published by AvBuyer on July 8, 2026.