Syndicate ownership - where two or more parties share ownership and operating costs of a business jet - can make aircraft ownership accessible at a lower individual cost while providing the benefits of a larger or newer aircraft than any single party could justify alone. Finance can be arranged for the syndicate as a whole or for individual members' shares.
How syndicate ownership works
The most common structure is a limited company SPV in which each syndicate member holds shares proportional to their ownership share. The SPV owns and operates the aircraft, and each member pays their share of fixed and variable costs. A syndicate agreement governs use, scheduling and the process for a member exiting.
Financing the whole syndicate
The SPV can take out a single loan secured against the aircraft, with all members (or the SPV) as borrower. Each member's personal guarantee covers their proportionate share of the debt. This is the simplest approach for a small, stable syndicate of well-known co-owners.
Financing individual shares
An individual syndicate member's share (their equity in the SPV) can sometimes be financed separately, secured against the SPV shares rather than the aircraft directly. This is more complex and not all lenders offer it.
Exit provisions
The syndicate agreement must address what happens when a member wants to exit - including how their share is valued, first refusal rights for remaining members and whether departing members can extract financed equity. Well-drafted exit provisions prevent disputes and make future financing easier.