Financing a Part 135 Charter Aircraft
To finance a Part 135 charter aircraft, operators need to show how the aircraft will pay for itself: trip history, charter rates, expected hours, fixed and direct costs, and any management or owner agreements, along with the certificate and safety record.
Key takeaways
- Lead with a breakeven analysis built on real trip data.
- Clean certificate history and safety records shorten approval.
- Management and owner agreements must be clear on who pays what.
- Acquisition loans and finance leases are most common for core charter aircraft.
What do lenders want from charter operators?
- Charter revenue by month for the last two years, and booked trips ahead
- Part 135 certificate, operations specifications and safety record
- Aircraft management and owner agreements, if the aircraft is managed
- Expected charter hours and rates for the new aircraft
- Crew staffing, maintenance arrangements and insurance
How many charter hours does an aircraft need?
Each charter hour contributes the charter rate minus the direct cost of that hour. Divide annual fixed costs by that contribution to get breakeven hours. If your expected hours clear breakeven with room to spare, lenders will see it. The charter breakeven calculator runs the numbers.
Which structures fit charter aircraft?
Core charter aircraft are usually financed with acquisition loans or finance leases. Operating leases suit seasonal capacity or contract-specific aircraft. Refinancing can lower costs once the operator has more history.
What about owner-managed aircraft?
Many charter aircraft are owned by individuals or companies and managed by a Part 135 operator. Lenders financing the owner will review the management agreement, how charter revenue and costs are shared, and who holds operational control. Aviation counsel should review these arrangements.
Charter Aircraft Breakeven Calculator
Charter hours a year to cover fixed costs.
Frequently asked questions
Can a new Part 135 operator get financing?
It is harder without history. Expect larger down payments or leases, and lean on the owners' experience and any contracted demand.
Do lenders care about the aircraft type?
Yes. Types with deep charter demand and broad resale markets are easier to finance.
Sources
This guide is educational and is not tax, legal or investment advice. See our editorial standards and disclosures. Spot an error? Tell us.
