Aircraft Financing — Loans, Leases & Ownership Structures
Buying or refinancing a business jet is a capital decision. The right structure depends on your balance sheet, tax position, operating plans and whether you want residual risk on your books or the lessor's.
- Senior secured aircraft loans and asset-backed term finance.
- Operating leases for off-balance-sheet, short-to-mid-term capacity.
- Finance leases and sale-leaseback for ownership or equity release.
- Islamic aircraft finance: Ijarah and Sukuk-compliant structures.
- New-delivery PDP financing and pre-owned aircraft acquisition support.
- Introductions to vetted lenders, lessors and aviation-specialist advisers.
Loan vs lease vs cash
A cash purchase is simplest but ties up capital and leaves residual-value risk with you. A senior secured loan keeps title with you while the lender takes a mortgage on the aircraft. An operating lease moves the asset and residual risk to the lessor, with fixed monthly payments and often a purchase option at term. A finance lease sits in between: you account for the asset and claim depreciation while the lessor holds legal title until a nominal buy-out.
Typical financing terms
Indicative terms vary by aircraft age, buyer profile and jurisdiction. New or young business jets commonly see 60–80% loan-to-value over 5–12 years, with rates reflecting the credit of the borrower and the liquidity of the asset. Pre-owned aircraft may require larger equity, shorter tenor or an amortising structure. Final terms are set by the lender or lessor, not by MEGA.
Islamic aircraft finance
Ijarah structures are widely used in the GCC. The lessor buys the aircraft and leases it to the operator; ownership may transfer at term under a separate promise or sale undertaking. Sukuk issuance is also used for larger portfolios. These structures must be reviewed by Sharia-compliant counsel and the relevant aviation authority.
New delivery vs pre-owned
New aircraft often involve pre-delivery payment (PDP) financing, export-credit support or OEM-affiliated lender programmes. Pre-owned aircraft require a deeper records review, residual analysis and a properly scoped pre-purchase inspection before a lender will commit. Both paths benefit from having the financing structure agreed before the LOI is signed.
Tax and registration considerations
Depreciation rules, import VAT, withholding tax and registry requirements differ materially by country. The structure that is tax-efficient in one jurisdiction can be costly in another. MEGA works alongside your tax and legal advisers to map these constraints, but we do not provide tax, legal or regulated financial advice.
How MEGA helps
We introduce clients to vetted aviation lenders, lessors, brokers and technical advisers, coordinate the information pack the financier needs, and align the financing timeline with aircraft search, inspection and delivery. We are not a bank, lessor or regulated financial adviser; all documentation is reviewed by your own counsel and the financing party.
Explore related options
If you are still deciding on the right asset, browse the aircraft guide and fleet to compare ranges, cabins and operating economics. For flexible flying without ownership, the jet card may fit. Country and model financing notes are published in the industry section of the journal.
Frequently asked questions
Can MEGA arrange the loan itself?
No. MEGA introduces clients to vetted lenders and lessors and coordinates the aviation side of the transaction. The loan or lease agreement is between you and the financing party.
What loan-to-value is typical for a private jet?
Indicative LTV for new or young business jets is often 60–80%, but it depends on the aircraft, borrower and jurisdiction. Older or less-liquid aircraft may require more equity.
Is Islamic aircraft finance available?
Yes. Ijarah and Sukuk structures are commonly used in the GCC and other Islamic markets. They must be structured by qualified Sharia-compliant advisers and approved by the relevant aviation authority.
Should I arrange financing before choosing an aircraft?
Usually yes. A financing term sheet or approval-in-principle strengthens your position in negotiation and prevents delays after the LOI is signed.
Does MEGA give tax or legal advice?
No. MEGA coordinates aviation and financing introductions; tax, legal and regulated financial advice must come from your own qualified advisers.