What Are Your Options When Financing an Airplane?

The FLYING staff delves into the myths associated with financing an aircraft.

Tuesday, February 06, 2024 at 10:48 AM ET

Verified

Having an adviser specializing in aircraft financing can help you to navigate the most likely path to securing the funds for the transaction. [iStock]

Key Takeaways:

FLYING Media Group acquired Sky Allies Capital to create FLYING Finance, offering specialized assistance for pilots seeking aircraft ownership, from light sport planes to super-midsize jets.
Aircraft financing varies significantly based on the aircraft type (e.g., experimental aircraft via home equity, jets via bank loans) and requires specialized knowledge that traditional banks often lack.
Utilizing an aviation finance broker can simplify the complex process by matching buyers with suitable lenders, offering creative financing solutions, and guiding them through a detailed checklist, often without additional cost.
Common financing options include bank loans (typically 15-20% down for private owners) and leasing for commercial operations (potentially 100% financed but with higher interest rates).

See a mistake? Contact us.

While an approach to minimums in a light twin may leave you with your hands full, most pilots recognize the path to proficiency and success in this scenario. What may not be as clear—if you don’t come from a finance background—is how to turn the dream of owning an airplane into reality.

As FLYING Media Group expands its portfolio of services to pilots, it recently acquired Sky Allies Capital, a nimble player in the aviation finance market, to help our readers find the path to aircraft ownership. Now, as FLYING Finance, the team we’re bringing on board will assist pilots in transitioning to owners, whether the deal is for a light sport airplane or a super-midsize jet.