Customized Aviation Financing

Customized Aviation Financing Developing a financing strategy for your aircraft

Whether you are buying a new aircraft or refinancing or refitting an existing one, U.S. Trust, in partnership with the Global Corporate Aircraft Finance executives from Banc of America Leasing, can help you achieve your objectives with credit solutions aligned with your ownership structure and cash flow needs. Together, we have helped hundreds of individuals with unique circumstances and objectives and offer you the benefits of this experience.

Working with a Global Corporate Aircraft Finance specialist, you can benefit from:

  • In-depth knowledge of the industry
  • Financing solutions designed around your needs
  • All the resources of one of the most respected financial institutions

A TAILORED APPROACH

Whatever your particular circumstances are, your financing can be precisely structured with interest rate alternatives, monthly or quarterly payments and competitive amortization schedules. Credit solutions include progress payment construction loans for new jets that can convert to tax leases or permanent loans.

Deciding which type of ownership structure is most beneficial to your financial picture is critical and can be daunting, as both the FAA and IRS regulations can have an impact on your decision.

The Global Corporate Aircraft Finance (GCAF) team of specialists can help evaluate the advantages and disadvantages of acquiring an aircraft. After you've made your decision, they can assist you with applicable details such as FAA registration and the requirements for the International Registry.

TAX-EFFICIENT FINANCING SOLUTIONS

Along with your attorney and tax advisor, the GCAF specialists can assist you in understanding FAA and IRS guidelines for ownership and operation of an aircraft to help you consider potential tax benefits of different ownership structures. Our specialists will walk you through the process, incorporating a team approach with your tax advisor and other experts — such as an accountant or lawyer — whom you rely upon to set and execute your tax and investment strategies. By addressing your needs collaboratively, these professionals can work to help you effectively manage your overall picture. Where appropriate, we can refer you to industry professionals who can provide you with the advice you will need to make informed decisions on these important issues. Our specialists can also assist you with a 1031 Like Kind Exchange (LKE) and work with you and your tax advisor to evaluate tax lease financing as a viable option to traditional debt financing.

FINDING THE RIGHT AIRCRAFT

With a large supply of aircraft currently on the market, making an informed purchase decision can be challenging. Whether you're considering the purchase of a new or preowned aircraft, or a refinance or refitting of an existing aircraft, GCAF can help you review current market information on values and available aircraft — from single-engine turboprops to long-range jets. The team of specialists can help expedite your search through access to a database of aircraft registered with the FAA.

SIGNIFICANT LONG-TERM DECISIONS

An aircraft is a significant acquisition, and planning for its use and maintenance begins well before its purchase. Decisions regarding the management of an aircraft are among many key considerations. In addition, future value and exit strategy considerations are important facets of any purchase and financing decision.

If you choose a preowned aircraft, we can coordinate an independent appraisal with your prepurchase inspection to evaluate the condition of the aircraft and determine its current value.

PUTTING EXPERIENCE TO WORK FOR YOU

As a leader in corporate aircraft finance, our Global Corporate Aircraft Finance specialists have knowledge of the market, current values and expectations of the probable future values of most aircraft models. We also know the key issues that should be addressed by every client when considering an aircraft purchase:

  • How often will you fly and what are the estimated hours per annum? Solution may be charter, jet card or whole aircraft.
  • What are the most common destinations and the range or distance? This will help determine the size of the aircraft.
  • How many passengers? This will determine the size of the cabin.
  • Will the aircraft be used primarily for business purposes? This will indicate potential tax benefits.
  • Are you selling an aircraft in conjunction with a purchase? This will determine if you need a 1031 LKE facilitator.
  • How will the aircraft be owned or registered with the FAA? Who will own that entity?
  • Whose tax return can best use the tax benefits from depreciation? This may determine if you should own or lease the aircraft.
  • What is your "exit" strategy and risk? This may determine if a tax lease is beneficial.

Coordinating with your other professional advisors, GCAF can help you consider key issues related to IRS guidelines for potential tax benefits and FAA issues regarding ownership and registration, including International Registry. GCAF has extensive connections and can recommend leading experts in the industry.

To learn more about Global Corporate Aircraft Finance group options, ask your U.S. Trust® advisor to arrange a meeting with a Global Corporate Aircraft Finance specialist.

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