Financing the purchase of an aircraft

The standard path takes 6–10 weeks. Step 1: a letter of intent (LOI) with price and terms — 3–5 days. Step 2: a 5–10% deposit into escrow and signing of the purchase agreement. Step 3: a pre-purchase inspection — 1–3 weeks. Step 4: rectification of findings and price adjustment. Step 5: closing — simultaneous transfer of funds, title and risk, technical acceptance and ferry of the aircraft.

A pre-purchase inspection (PPI) is an independent check at a certified centre: airframe, engines, corrosion, records and compliance with airworthiness directives. It takes from 3 days on a turboprop to 2–3 weeks on a heavy jet and costs $15–100K — paid by the buyer. By market practice the seller pays to rectify airworthiness-affecting defects. A seller refusing a PPI is grounds to walk away.

The import budget depends on jurisdiction. In the EU the main items are any customs duty (most business-jet codes carry reduced or zero rates) and import VAT, which varies by country of entry (for example 19–22% in much of Europe). Registration in Aruba, San Marino or the Isle of Man under operation outside the EU allows a temporary-admission regime. We produce an exact calculation before the LOI is signed — an error here costs millions.

After purchase the aircraft must be entered into service: choose a registry (Aruba, San Marino, Isle of Man or a national one), sign a management and maintenance contract with an operator, enrol the engines on a programme (ESP/JSSI), arrange insurance, hangar and crew, and plan the first maintenance. We support all of these steps. Send us a request — we'll prepare options, calculate running costs and analyse the best fit for your task.

Before a deal we check: title and absence of liens or leases (a registry title search), the full maintenance history and airworthiness-directive records, the status of heavy maintenance checks and engine time remaining, any incident involvement, and compliance with export rules. We organise this review and an independent pre-purchase inspection before any funds move. Send us a request — we'll prepare options, calculate running costs and analyse the best fit for your task.

Running costs depend on utilisation and aircraft class. Budget for fixed and variable items:

- Crew and support staff;
- Fuel and navigation charges;
- Maintenance and insurance;
- Hangar storage and airport fees;
- Management company fee.

A light jet flying 200 hours a year typically costs from USD 700,000 annually; a long-range aircraft on the same utilisation runs into several million. We prepare a cost-of-ownership calculation for the specific aircraft before you commit, so the budget holds no surprises.

Start from the mission, not the model. Four questions decide almost everything:

- Typical route and the longest leg you need without a stop;
- Number of passengers on a normal flight, not the maximum;
- Airports you use — runway length and altitude limit the choice;
- Annual utilisation, which drives whether ownership beats charter at all.

Once those are clear, two or three types usually remain. We compare them on hourly cost, residual value and parts availability, then shortlist actual aircraft on the market.

With a pre-owned aircraft the price tag is the smallest part of the story. What decides the real cost:

- Status of engine and APU programmes — an aircraft outside a programme can carry a seven-figure liability;
- Airframe hours and cycles against the maintenance schedule: the next heavy check may be due immediately;
- Damage history and completeness of the logbooks;
- Avionics compliance with current airspace requirements;
- Interior and paint condition, which set the refurbishment budget.

We check all of this during the pre-purchase inspection and translate the findings into money before the deal closes.

The registry is chosen on tax treatment, privacy and ease of later resale. Common options are the United States (N-register), the Isle of Man, Malta, Aruba, San Marino and the Cayman Islands; in the CIS, Kazakhstan and Russia.

Registration requires a legal owner in an acceptable form, an airworthiness review and a maintenance organisation in place. Timelines run from two weeks to two months depending on the jurisdiction. We advise on the registry, prepare the paperwork and arrange the ferry flight.

An aircraft lives either in a hangar or on an open ramp. A hangar protects paint and interior from weather and ultraviolet, cuts corrosion risk and reduces de-icing costs; open parking is cheaper but shortens the life of finishes.

Prices vary widely by airport: from a few thousand dollars a month in the regions to tens of thousands at major business aviation hubs. Storage is usually arranged together with line maintenance and handling, so the aircraft is ready to depart on short notice. We help select the base and negotiate terms.