You Don't Have to Buy It
To Own the Experience of Flying It.
Buying outright is one way to get a business jet. For a lot of serious operators, it's not the smartest. Aircraft leasing keeps capital in play while the aircraft works for you. We've been structuring these arrangements since 1995 - having sat on both sides of the transaction more times than we can count.
The Real Case for Leasing
A business jet loses value from the day it's delivered. Buying one outright parks capital in that depreciation curve - capital that could be working elsewhere, earning a return, or sitting liquid against conditions that change. And conditions do change. Business jet leasing splits the right to use the aircraft from the obligation to absorb what it loses in value. The residual value risk, the debt, the regulatory complexity - handled differently. Most experienced operators think through this before deciding how to acquire.

Business Aviation Group of Partners advises on aircraft lease structures, sources aircraft, and introduces clients to lessors. Thirty years of operational history in business aviation. We know what these structures look like when they work - and when they don't.
Financial Lease, Operating Lease:
What the Difference Actually Means.
  • Financial lease (capital lease) - the lessee is effectively buying on time. Payments cover the asset value. Ownership transfers at end of term. Aircraft sits on the lessee's balance sheet. Works for operators who want equity in the asset and have a clear long-term fleet view.
  • Operating lease - lessor keeps ownership and residual value risk. Lessee pays for use over a set period, then returns it. Off balance sheet in many jurisdictions. Works for operators who want flexibility or don't want asset risk on their books.
  • Sale and leaseback - sell an aircraft you already own, lease it back from the buyer. Capital released, operational use retained. We've handled these for private owners and corporate operators - more common than people realise.
  • Wet lease and dry lease - dry lease is the aircraft alone; lessee provides crew and operations. Wet lease brings crew along. The regulatory picture differs considerably across jurisdictions, and AOC requirements follow the operation, not the aircraft. This matters. A lot.
Typical Lease Parameters
On a financial lease, advance payment typically runs 20–30% of the aircraft purchase price. Lease terms generally fall between 5 and 10 years - depending on deal size, the lessee's credit profile, aircraft type, and what the lessor is prepared to offer. Payment schedules are built around the client's cash flow and holding period, not pulled from a standard template.

On collateral: depending on jurisdiction and financial profile, lessors may require additional security. How much, in what form, and what's actually negotiable varies considerably. We advise on where the leverage sits - before heads of terms are signed, not after.
Where Leasing Transactions Break Down
  • Registration and jurisdiction mismatch - registration has to line up with the lease structure, AOC requirements, and the maintenance programme. When it doesn't, corrections mid-term are expensive.
  • Maintenance reserve disputes - the calculation method, scope of covered work, and return conditions are among the most contested provisions. Getting the language right at the start costs far less than arguing about it at the end.
  • AOC issues in wet lease - wet lease is regulated air operations. AOC holder, operational control, insurance, liability - mapped correctly before the first flight. Get it wrong and the aircraft doesn't fly.
  • Return conditions - vague language produces disputes over maintenance completion, airworthiness status, paint and interior. Specific provisions. Not a template from the last deal.
  • Residual value exposure - in a financial lease, the lessee holds the residual value risk at end of term. Price this before signing. Not negotiable.
Frequently Asked Questions
Is leasing or buying outright the better option?
Depends on capital position, tax situation, holding period, and whether usage justifies ownership. We run the numbers for each situation. No universal answer - anyone who gives one without knowing the figures isn't advising, they're guessing.

Can a leased aircraft be placed under AOC for commercial operations?
— Yes - provided the lease permits it and the correct AOC structure is in place. Sort this at transaction stage, before delivery. The lease has to allow it and the AOC holder has to accept the aircraft.

What is a sale-and-leaseback and when does it make sense?
— Releases capital from an aircraft the operator already owns while retaining operational use. Makes sense when capital has better uses elsewhere, when balance sheet exposure needs reducing, or when liquidity is the priority.

What is the difference between wet lease and dry lease for private operators?
— Dry lease provides the aircraft; the operator supplies crew, maintenance, and handles regulatory compliance independently. Wet lease includes crew and operational support - and crosses into regulated commercial operations, which means AOC requirements apply. The regulatory and insurance implications of each are significantly different.

Can you manage the aircraft after the lease is in place?
— Yes. A leased aircraft still needs registration, AOC placement if flying commercially, a CAMOP programme, crew, and operations management. We provide all of that - so clients who lease through us don't need to build separate relationships to get the aircraft operational.

Aircraft leasing is a financial and operational decision - not just a way to spread payments. The structure affects registration, AOC eligibility, the maintenance programme, and end-of-term value. Tell us how the aircraft will be used, what the holding period looks like, and what matters most financially. We'll build the structure around that. Contact Business Aviation Group of Partners to start the conversation.
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