Frequently asked questions
These are what we found the most frequently asked questions are relating to buying or selling an aircraft.
What is the general process in the acquisition of an aircraft?
There are several stages in the purchase of a complex asset such as an aircraft.
i. The decision-making on the type of aircraft(Super mid-size, for example) takes
first precedence to ensure that the correct aircraft model has been chosen. A
variety of factors are taken into account to narrow down options up-to and
including, price, mission-purpose, number of passengers, city-pairs of intended
travel(range), depreciation value/resale value, operational cost, maintenance
cost and local CAA rules, etc.
Once the options have been narrowed down to a specific aircraft type and
model, the next step is taken.
ii. Market Survey on the aircraft type and model for the entire world is undertaken.
The 3 best fit options on specifications, price and maintenance history is
iii. Letter of Intent is filed on the aircraft once pricing negotiations are complete. A
letter of intent or LOI is a brief document entailing the negotiated price, deal
structure and the time frame of purchase(usually less than 6 weeks).
Upon a counter-signed LOI, a draft APA is prepared in lieu of the PPI and terms
get discussed for ease of transaction. This step also helps in saving time and
iv. A deposit amount usually follows the LOI. The deposit is made to an ESCROW
account mutually agreed between the seller and buyer. ESCROW amount usually
is around 10-15% of the sales price.
v. A Pre-Purchase Inspection(PPI) is conducted by the buyer’s technical team or a
third-party aircraft assessment team to ensure that there are no red flags such as
corrosion. A flight test is also often conducted together with the PPI.
vi. Findings from the PPI are then shared amongst the buyer/seller and where
necessary amendments are made by the seller. If there is additional custom work
needed, the buyer might have to chip in as well.
vii. Once the aircraft is found satisfactory and a successful PPI is complete, the APA is
signed and the deposit becomes non-refundable.
viii. Procedures for export then commence such as the export CofA and clearance
ix. Aircraft is then containerised ready to be transported via flight/freight. Close can
happen between vii and ix, where the ESCROW agency will distribute funds
according to the APA and any commissions fee agreements signed.
How does the financing of the acquisition of an aircraft work?
Financing of an asset or acquisition allows the owner to diversify his risk and
frees up capital to be redeployed in other regions of his business/personal life.
Aviation Sales International has a group of funders between banks, private
equities and specialized aircraft funders who work to provide funding for
acquisition of aircraft.
Following are some of the considerations that need to be taken:
a) Purpose of aircraft: An aircraft for corporate reasons would require
different documents(company financials, business plan, Board of
Directors profile, etc.) as compared to a personal recreation
vehicle(personal finances, employment contract, personal guarantor)
b) Location: Region or location plays a pivotal role in the type of financing
that an aircraft purchase can get. Places such as the United States and
Canada are very easy while places such as Nigeria can be relatively harder
c) Aircraft type: The choice of aircraft type also plays an important role in
financing with jets being easier to fund as compared to pistons and
smaller turboprops. Helicopters can be challenging depending on a
combination of factors.
We are connected to a variety of funders who fund every type of aircraft.
Please write to us with a detailed account of the asset that requires
funding and our team will be there to deliver.
I own an aircraft and would like to sell it. How would you determine price and how long will the process take?
The decision to sell an aircraft can often be a difficult one, many factors need to be taken
into consideration such as age, maintenance status of the aircraft, market, and the reason
for selling. If it is a distress sale, the parameters for the sale would vary completely.
The price for the aircraft is often a combination of factors. We usually use VREF or Bluebook
to determine the value of the aircraft. Once done, it is adjusted according to market
standards and published on our newsletters and website. Our news letters are daily
followed and read by 15,000 aircraft operators, salespersons and MRO personnel.
The timeframe varies depending on the aircraft type and the demand in that particular
market. Some aircraft are gone within the week and some are on sale for nearly 8 months.
Key determinants are usually price points and markets – a 604 market is much more pliable
than a BBJ market.
For a complete analysis of your aircraft, don’t hesitate to get in touch with us for a complete
market survey and a breakdown of your aircraft.
Do you have any aircraft besides ones published on the website?
Yes! We specialize in a plethora of off-market aircraft that we are connected to exclusively with the
As of 25 th November we have close to 43 off-market aircraft including jets, turboprops, helicopters
and pistons that are for sale. We are not allowed to advertise or circulate these for a variety of
Please get in touch with us now if you are looking for a certain aircraft!
Did not find answer? Contact us!