Buying a business aircraft follows a fairly standard path. Knowing it in advance helps you choose the right people and avoid expensive surprises.
1. Define the mission
Start with how you will fly: typical trip length, passengers, runways, how often, and how much you want to spend each year to operate, not just to buy. The mission narrows the field to a few categories and models.
2. Search the market
Compare listed aircraft of the right model by age, airframe and engine time, engine-program status, equipment and asking price. A broker can also find aircraft that aren't publicly listed.
3. Letter of intent (LOI)
The LOI sets the price, deposit, inspection terms and timeline. The deposit should go to an independent escrow agent and stay refundable until you accept the aircraft.
4. Aircraft purchase agreement (APA)
The APA is the binding contract. It sets out the pre-purchase inspection, delivery condition, who pays for findings, rejection rights, and delivery location and date.
5. Pre-purchase inspection
An independent facility experienced with the type reviews the records and inspects the aircraft. See our pre-buy inspection checklist.
6. Closing
For US-registered aircraft, closings are usually run by escrow agents in Oklahoma City, where the FAA Aircraft Registry is based. Once funds and documents are in escrow, the agent typically:
- pays off any liens on the aircraft
- pays the seller
- files the bill of sale and registration application with the FAA
- registers the sale on the International Registry if the aircraft falls under the Cape Town Convention
The buyer then signs a delivery receipt and takes possession.
7. After closing
Insurance must be in place at delivery. You will also need registration, a plan for crew and maintenance (or a management company), and tax advice on where and how the aircraft is based.
The people involved
- Broker or dealer: finds and negotiates. In the US, aircraft sales brokers are not federally licensed, though some states require dealer registration and voluntary accreditation exists, so ask about credentials.
- Escrow and title agent: holds funds, searches title and files documents.
- Aviation attorney and tax adviser: handle contracts, structure and tax.
- Technical representative and maintenance facility: run the inspection.
- Lender and insurer: provide finance and cover.
AeroSterling provides acquisition research and the deal desk newsletter, and introduces independent professionals through the Partner Network. We are not a broker or escrow agent and never hold funds or title.
