Taking to the skies often requires navigating the complexities of financing an airplane. Episode 2 of Inside Aviation sheds light on this process with hosts Kevin Cortes and Ryan Ewing interviewing Preston Holland, chief commercial officer at FLYING Finance.
Helping clients navigate the intricacies of airplane financing, FLYING Finance acts as an intermediary between buyers and lenders. The group creates competition in the loan market, explains key concepts like TBO (Time Between Overhauls), and guides clients through the entire buying process.
The episode also addresses the question of whether it’s ever financially sensible to own an airplane compared to flying commercially. While acknowledging the convenience and time-saving benefits of private aviation, Holland uses the example of limited commercial air service from Chattanooga, Tennessee (KCHA), to various destinations to illustrate the potential advantages of owning an airplane for frequent regional travel.
Holland also explores various aspects of financing an aircraft while debunking different myths and stereotypes about private aviation.
Market trends: The show discusses a shift in the market due to rising interest rates and the potential impact of the proposed reinstatement of 100 percent bonus depreciation on airplane purchases.
Client demographics: While some clients are first-time buyers, a significant portion are upgrading from previous aircraft models, says Holland. Business owners and high-income individuals are often the primary clientele.
Credit application process: FLYING Finance offers a streamlined online application process, requesting information like debt, income, and liquidity. Depending on the purchase price, a more thorough financial evaluation might be required.
Factors lenders consider: Beyond financial standing, lenders assess factors such as pilot ratings, insurance rates, aircraft location, and international travel frequency.
Tune in to the entire episode to see Holland break down popular TikTok videos, including why empty legs are like Bigfoot and flying private for free.
Also in Episode 2, Cortes and Ewing discuss a handful of other topics in the aviation community. Friday marked 10 years since Malaysia Airlines Flight 370 was lost after departing from Kuala Lumpur. The two also talk about a Delta Air Lines pilot who chartered an entire Airbus A330 for his retirement flight.
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Inside Aviation can be found on AvWeb’s YouTube channel and Facebook page in a video format. The show is also available on all podcast platforms, including Spotify and Apple.
