Financing Commercial Aircraft
Crestmont Capital offers a diverse blend of aviation financing options to meet the unique borrowing obligations and investment goals. We can accurately structure the best financing solution regardless of the transaction size you need. Our expertise and depth of industry knowledge maximize efficiency to your advantage. Below are a couple of different options we offer:
- Secured loan – This is a traditional amortized loan, like a mortgage, where the Crestmont Capital lends all or part of the money to purchase an aircraft up front. The borrower takes title of the aircraft and can deduct depreciation for tax purposes, but if the borrower defaults on the loan payments, Crestmont has a security interest in the aircraft as collateral.
- Capital lease – In this arrangement, sometimes called a “finance lease,” we acquire the title to the aircraft, not the borrower. However, in many ways the borrower acts as the aircraft owner: The aircraft must be capitalized on the operator’s balance sheet, and the operator can still take depreciation for tax purposes.
- Operating lease – This structure is usually favored by operators that intend to hold the aircraft for a shorter period of time (five to 10 years), or otherwise want to limit their residual-value risk. Like a traditional lease, Crestmont Capital retains title. In general, the aircraft is not capitalized on the lessee’s balance sheet and the lease payments are treated as operating expenses, similar to fuel. Aircraft tax depreciation deductions are usually not available to the lessee.
Crestmont Capital’s provides management solutions for commercial aircraft and engines, and aviation consultancy services that specialize in providing airport solutions and airline planning.