Placing your business jet on a UK Air Operator Certificate (AOC) for commercial charter is an increasingly popular way to offset ownership costs. Most UK aviation lenders will finance aircraft used for charter, though the structure and rate may differ from a purely private aircraft.
How charter affects lender appetite
Most mainstream aviation lenders accept charter operations, particularly mixed-use (personal and charter). Pure commercial operations may be viewed less favourably by some lenders, as the aircraft is subject to more intensive use and a different maintenance regime. Global Jet Capital and specialist lessors are most comfortable with full charter operations.
AOC requirements
To operate commercially in the UK, your aircraft requires a UK CAA Air Operator Certificate (AOC) or must be placed with an existing AOC holder under a dry lease. The lender will want to see details of the AOC arrangement and may require its consent before you place the aircraft on charter.
Revenue sharing and lender consent
If you intend to place the aircraft with a charter management company, you will typically need the lender's consent (most loan agreements contain a restriction on commercial leasing without consent). We recommend raising this with the lender before drawdown.
Insurance for charter aircraft
Charter aircraft require aviation hull and liability insurance that covers commercial operations. Premiums are typically higher than for private-use-only aircraft. The lender will need to be noted as loss payee on the hull policy.