Aircraft economics
Purchase price, depreciation, market value, residual value and the difference between aircraft price and total ownership cost.
PRIVATE AVIATION FINANCE ACADEMY
Learn the aircraft finance game before you sign the term sheet.
A structured masterclass for private jet buyers, business owners and aviation professionals — from the first aircraft quote to financing, due diligence, ownership costs and closing.
10 finance modules20+ key concepts1 interactive calculator
THE CORE QUESTION“What will this aircraft really cost to finance and own?”
Model the debt. Understand the collateral. Stress-test the balloon. Then compare the whole transaction.
01 / MASTERCLASS
The aircraft finance curriculum
Use these modules as a self-study course. The goal is not just to calculate a payment, but to understand the complete transaction.
Aircraft valuation
Why make/model, age, configuration, maintenance status, damage history and marketability matter to collateral underwriting.
Borrower underwriting
Liquidity, income, credit, existing obligations, entity structure, guarantees and source of funds.
LTV & equity
How loan-to-value changes lender exposure, required equity and potentially the financing structure.
Rate & amortization
Understand fixed/floating rates, amortization schedules, term, maturity and how each changes cash flow.
Balloon exposure
A shorter maturity than amortization can leave principal due at maturity. Model the balance before accepting the structure.
Ownership costs
Insurance, hangar, maintenance, crew, management, fuel and other fixed and variable operating expenses.
Legal & tax review
Ownership entity, registration, security interests, tax treatment and cross-border considerations require qualified advisers.
Insurance & operations
Hull and liability coverage, approved pilots, operating base, management and intended aircraft use.
Closing & aftercare
Term sheet, purchase agreement, inspections, title, documentation, lender conditions, closing and ongoing covenants.
02 / DON'T MISS THESE
Questions buyers should ask
Aircraft
What is the independent valuation? What maintenance events are due? Is the aircraft easy to remarket?
Loan
What are the LTV, rate, amortization, maturity, balloon, fees and prepayment terms?
Borrower
What financial documents, guarantees, liquidity levels and covenants will be required?
Usage
Will it be personal, corporate, charter or managed? Does the use change insurance or financing requirements?
Exit
What happens if you sell early? Is there a prepayment penalty? Can the loan be assumed or refinanced?
All-in cost
What are legal, valuation, inspection, origination, registration and other transaction costs?
03 / INTERACTIVE
Private jet finance calculator
Planning model only. Replace assumptions with lender-specific terms for a transaction.
ESTIMATED MONTHLY DEBT SERVICE
$19,779
Loan$2,000,000
Equity$500,000
LTV80.0%
Balloon$1,583,000
Annual debt service
Ownership costs
Total annual requirement
04 / STRUCTURES
Financing paths
Traditional aircraft loan
Credit and collateral are both relevant. Compare down payment, rate, amortization, maturity, balloon and covenants.
Asset-focused / low-LTV
A larger equity contribution can reduce lender exposure. Documentation and eligibility still depend on the transaction.
Aircraft leasing
Lease structures can produce a different cash-flow and ownership profile. Tax and accounting advice is essential.
There is no universal “standard aircraft loan.” Terms depend on aircraft, borrower, usage, jurisdiction, market conditions and lender appetite. Treat advertised ranges as starting points, not guarantees.
05 / CLOSING CHECKLIST
What you may need to prepare
Aircraft file
Purchase agreement · specification · maintenance records · title · valuation · inspection · damage history.
Financial file
Financial statements · bank/liquidity evidence · tax documents · debt schedule · entity information · guarantees.
Operational file
Intended use · annual hours · base · management · crew · insurance · charter/lease arrangements where applicable.
Loan file
Term sheet · rate · LTV · maturity · amortization · balloon · fees · prepayment · covenants · security.
06 / PARTNER SPACE
Three premium sponsor placements
Designed for aviation finance lenders, brokers, insurers, aircraft management firms, valuation firms and aviation services.
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Premium Aviation Partner
High-visibility placement beside finance education content.
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Aviation Services Partner
Ideal for insurance, valuation, management or advisory services.
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