Aviation Debt Financing

Aviation debt financing involves airlines or aircraft owners borrowing money to buy planes, with the aircraft itself serving as collateral. This type of financing allows operators to acquire costly aircraft without paying the full amount upfront. The borrower agrees to repay the loan over time, typically with interest, through scheduled installments. The lender has the right to repossess the aircraft if the borrower defaults. This financing method helps airlines manage cash flow, fund fleet expansion, and stay competitive, while spreading out the cost of aircraft ownership over many years.