Aircraft ownership is not limited to purchasing a plane directly. Many owners, operators and investors use different structures such as leases, trusts or special purpose entities to manage financing, risk and regulatory requirements. In this article, we explain the main types of aircraft ownership structures and how they are used.
What are Aircraft Ownership Structures?
Aircraft ownership structures describe the different legal and financial ways an aircraft can be owned, financed or operated. Because aircraft are high-value assets with strict regulatory requirements, ownership must be clear, documented and compliant with aviation rules.
The structure chosen influences who is responsible for maintenance and insurance, how the aircraft is financed, where it is registered and who is considered the legal owner. Airlines, leasing companies, private operators and investors often choose different models depending on their financial and operational needs.
Direct Aircraft Ownership
Direct ownership is the simplest form of aircraft ownership. An airline, company or individual purchases the aircraft and holds full responsibility for its operation, maintenance and compliance. This provides complete control but requires significant capital investment and long-term financial commitment.
Direct ownership is common in corporate aviation or in situations where an operator wants full control over the aircraft. However, because of the large upfront cost, many commercial operators now prefer leasing or structured ownership models.
Joint or Co-Ownership Models
Some aircraft, particularly business jets, are often owned jointly by multiple parties. Fractional ownership and co-ownership arrangements allow several individuals or companies to share the cost of purchasing and operating the aircraft.
Each co-owner typically receives a defined amount of usage time, and responsibilities for insurance, maintenance and scheduling are managed collectively or by a management company. This model offers flexibility and reduces financial exposure while still providing access to an aircraft.
Aircraft Leasing as an Ownership Structure
Leasing has become one of the most widely used forms of aircraft ownership. Instead of owning the aircraft, the operator signs a long-term lease agreement.
The two primary types of aircraft leases are:
Operating Lease
The lessor owns the aircraft and leases it to the operator for a fixed period. At the end of the lease, the aircraft is returned, re-leased or sold.
Finance Lease
This functions similarly to long-term financing. The lessee pays for most of the aircraft’s value over time and may have the option to purchase it at the end of the term.
Special Purpose Vehicles in Aircraft Ownership
Special purpose vehicles, also known as SPVs, are commonly used to isolate aircraft ownership within a dedicated legal entity. This approach helps separate financial risk, support transparency and simplify asset management, especially in financing or cross-border leasing transactions.
Factors that influence Aircraft Ownership Structure choice
The most suitable aircraft ownership structure depends on several factors, including:
- financing requirements
- regulatory and registration rules
- operational responsibilities
- long-term usage plans
- risk management considerations
Because aircraft ownership touches on financial, regulatory and operational areas, operators often combine different models to find a structure that fits their needs.
Conclusion
Aircraft can be owned and managed in several ways, each offering different advantages depending on the goals of the owner or operator. Whether owned directly, shared among several parties, leased from a specialist lessor or held through a trust or SPV, the chosen structure affects how the aircraft is financed, operated and controlled. Understanding these models helps clarify how responsibility and risk are managed within the aviation industry.
