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

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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 launch FLYING Finance, a specialized service aimed at helping pilots navigate and secure financing for aircraft ownership across all types, from light sport planes to super-midsize jets.
The type of aircraft significantly determines the available financing options, ranging from home equity loans for experimental aircraft to traditional bank loans for jets, often requiring an expert to navigate.
Utilizing a specialized aviation finance broker like FLYING Finance offers benefits such as matching buyers with the right lenders, providing expert guidance on ownership structures and documentation, and potentially streamlining the process and cost compared to general banks.
Common financing paths include bank loans (requiring 15-20% down over 10-20 years) and home equity loans for private owners, while aircraft leasing is primarily for commercial operations and may offer 100% financing at higher rates.

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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.