Customized Aviation Financing

Customized Aviation Financing Developing a financing strategy for your aircraft

To help achieve your aircraft ownership goal, the advisors at U.S. Trust draw upon three strengths: expertise in wealth management, the extensive resources of a leading financial institution and the in-depth knowledge of the aviation industry from our specialists in the Global Corporate Aircraft Finance division.

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 to help make your aircraft investment a success. Together, we have helped hundreds of individuals with unique circumstances and objectives and offer you the benefits of this experience and expertise.

Working with the aviation finance specialists at U.S. Trust, you can benefit from:

  • In-depth knowledge of the industry
  • Financing solutions designed around your needs
  • All the resources of one of the world's 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 and interest rate swaps for your aircraft financing to hedge some or all of your exposure to interest rate risk.1

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.

Our team of specialists can help evaluate the advantages and disadvantages of acquiring an aircraft. After you've made your decision, we can assist you with applicable details such as FAA registration and the requirements for the International Registry.

TAX-EFFICIENT FINANCING SOLUTIONS

To help ensure that maximum tax benefits of ownership flow through to the appropriate individual or shareholder, our specialists can assist you in understanding FAA and IRS guidelines for ownership and operation of an aircraft. 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 THAT 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, we can help you review current market information on values and available aircraft — from single-engine turboprops to long-range jets. Our team of specialists can help expedite your search through our 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 OUR EXPERTISE TO WORK FOR YOU

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

  • How often will you fly and 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 the client's exit strategy and risk? This may determine if a tax lease is beneficial.

We can advise our clients with key issues related to IRS guidelines for potential tax benefits and FAA issues regarding ownership and registration, including International Registry. We have 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.

MANAGING YOUR WORTH WITH U.S. TRUST

Your wealth is not measured by numbers alone, but by the extraordinary opportunities and complex challenges that define your life. At U.S. Trust, we apply our deep insight and broad expertise to help you make the most of the things that matter most to you.

We begin by listening to you, getting to know you and learning from you. Then we build a plan that aligns with your personal values, family goals and business interests.

Together, we address the dimensions of your worth today and of the legacy you're building for future generations.

¹Hedging strategies can result in higher return potential but also higher loss potential. Prospective investors are required to meet certain qualifications and acknowledge that they understand the risks associated with certain hedging strategies may not be suitable for all investors.

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