Many commercial aviation operations are structured with aircraft held in special purpose vehicles (SPVs) or holding companies that lease to the operating AOC entity. This structure is common for tax efficiency, liability management, fleet portfolio management and capital market access. Finance for SPV-based commercial aviation structures requires lenders who understand and accept these structures - and a broker who can present them clearly.
Isle of Man and Irish Republic registered aircraft structures are used by UK-adjacent commercial operators seeking to access a different regulatory environment or AOC. Isle of Man Aviation Registry (M-registration) is particularly popular for ACMI operators and aircraft lessors. Irish registration (EI-reg) with an Irish AOC is used by operators with Pan-European traffic rights. Finance in these jurisdictions requires UK lenders comfortable with M-reg or EI-reg security, or local lenders in those markets.
Group commercial aviation finance - where a parent company has multiple aviation subsidiaries, potentially in different jurisdictions - requires a lender capable of assessing the consolidated group position rather than individual entity performance. HSBC, Barclays and Investec have the most experience with group commercial aviation finance structures.
DBF works with commercial operators and their corporate advisers to structure aviation finance that is coherent with the wider group structure, tax planning and capital allocation framework. We are not tax advisers, but we understand the finance implications of different ownership structures and can ensure the finance strategy is compatible with the overall group approach.
Key Lenders for This Segment
| Lender | Rate from | Strengths |
|---|---|---|
| Investec | 5.8% p.a. | Specialist aviation, large tickets, strong covenants |
| HSBC | 6.0% p.a. | Global capability, complex structures |
| Close Brothers | 6.1% p.a. | Proven commercial desk, accessible |
| Paragon | 6.9% p.a. | Flexible on complex or unusual structures |
| Shawbrook | 7.2% p.a. | Accessible for newer operators |