Aircraft Financing for Part 135 Charter Operators

Finance Charter Aircraft Around Utilization, Revenue and Collateral

Part 135 aircraft financing is underwritten differently from a low-utilization private aircraft. Lenders care about hours, cycles, charter revenue, maintenance programs, operator quality and the residual value impact of commercial use.

This page is written for aircraft owners, operators, CFOs and aviation finance teams evaluating a live transaction rather than a generic aircraft category. For adjacent decisions, ACMI World also covers private jet lenders, banks active in aviation finance and private jet operating costs.

Transaction Focus

Price the Whole Structure

A headline rate or monthly payment is useful only after the required capacity, term, operating responsibilities, maintenance exposure, security and end-of-contract obligations are clear.

When Part 135 Aircraft Financing Is Worth Considering

The strongest use cases share a clear operational or capital rationale:

• Fleet expansion
• Acquisition of managed charter aircraft
• Refinancing
• Replacing older high-utilization jets

Financing Terms That Drive the Real Cost

Before comparing offers, normalize the commercial assumptions. The following points usually move the economics materially:

• Advance rate
• Amortization
• Recourse
• Covenants
• Maintenance reserve treatment

Compare Capital Structures, Not Just Interest Rates

For Part 135 aircraft financing, the cheapest coupon can still be the wrong facility. Compare advance rate, amortization and recourse together with fees and recourse. Collateral quality will turn heavily on historical utilization and charter revenue. A disciplined lender comparison should therefore focus on usable proceeds, debt service, flexibility and execution certainty.

What Lenders Will Underwrite

A credible counterparty will need enough information to underwrite the transaction rather than quote against assumptions. Prepare and verify:

• Historical utilization
• Charter revenue
• Maintenance status
• Operator certificate
• Borrower financials

Questions to Put to the Counterparty

• What advance rate is available for Part 135 aircraft financing?
• How does the lender underwrite historical utilization?
• Which covenants are tied to recourse?
• How is the facility treated if high utilization can reduce residual value faster?

Execution Risks to Address Early

The recurring problems are usually visible before signing if the transaction is reviewed from an operational and financial perspective:

• High utilization can reduce residual value faster
• Revenue assumptions should be stressed
• Maintenance downtime affects both collateral and cash flow

Prepare the Financing Request Before Approaching Lenders

A lender-ready package should identify the aircraft, requested facility, current debt if any, borrower and guarantor, maintenance status, operating use, valuation support and the reason for the financing. Better disclosure usually produces a faster and more comparable lender process.

The related ACMI World resources on private jet lenders, banks active in aviation finance and private jet operating costs can help benchmark the structure before counterparties are approached.

Transaction Checklist

Define the mission, timing, counterparty requirements, commercial target and downside case before selecting the aircraft or financing structure. That is the fastest way to remove offers that look competitive on one number but fail on the full transaction.

Frequently Asked Questions

Can lenders finance Part 135 aircraft financing?

Potentially. Approval depends on aircraft value, maintenance status, borrower credit, jurisdiction, facility size and the lender's aviation appetite.

What documents should be prepared first?

Aircraft details, ownership and lien information, maintenance status, valuation support, borrower financials and a clear statement of the requested facility.

How should offers be compared?

Compare advance rate, interest, fees, amortization, maturity, recourse, covenants and transaction costs rather than focusing on rate alone.