Buying a private aircraft is one of the most significant business and lifestyle decisions you can make. It is also one of the most complex. Unlike purchasing real estate or even a high-end yacht, acquiring an aircraft involves technical, financial, regulatory, and operational considerations that must all align. Done correctly, the process is rewarding, delivering unmatched freedom, productivity, and value. Done haphazardly, it can result in unexpected costs, operational headaches, and long-term regret.

This guide breaks down the process into clear stages, helping buyers understand not just the what but also the why behind each step.

STAGE 1: DEFINE THE MISSION

Why it matters: Every decision flows from mission definition. Without it, buyers risk choosing an aircraft that is too small, too large, or simply not fit for purpose.

Questions to answer:

• What routes will you fly most often?

• How many passengers do you typically carry?

• Do you need nonstop intercontinental capability or short-field performance?

• What is your budget for acquisition and ongoing operating costs?

Example: A CEO flying weekly from Chicago to New York may not need a Gulfstream G650ER. A super-midsize aircraft like a Citation Longitude or Challenger 350 could be a more efficient fit.

STAGE 2: BUILD THE SHORTLIST

Conduct a market scan with a trusted broker to identify aircraft that match your mission. Consider both new and pre-owned options. Compare factors such as range, speed, payload, cabin size, resale value, and maintenance programs. From there, narrow the field to around three to five models that deserve deeper analysis.

STAGE 3: RUN THE NUMBERS

Beyond acquisition price, you must understand the full financial picture. Direct Operating Costs (DOCs) include fuel, crew salaries, hangar, insurance, and maintenance reserves. Decide how you will finance the acquisition — cash, loan, lease, or hybrid. Align your purchase with tax strategy, considering options like bonus depreciation or Section 179, and ensure compliance with IRS rules for personal use. Finally, determine the ownership structure — individual, corporate entity, or trust — since each has implications for liability, taxes, and estate planning.

STAGE 4: ISSUE THE LETTER OF INTENT (LOI)

The LOI formalizes your intent to purchase, secures exclusivity, and defines the framework for due diligence. It should cover deposit amount, inspection scope, closing conditions, delivery location, and responsibility for discrepancies. A well-drafted LOI protects your interests and prevents costly disputes later in the process.

STAGE 5: CONDUCT THE PRE-PURCHASE INSPECTION (PPI)

The PPI is the buyer’s insurance policy. Its scope should include the airframe, engines, avionics, and cabin. Always select the inspection facility yourself to ensure independence. A comprehensive PPI is the single most important step to uncover hidden costs and negotiate adjustments before closing.

STAGE 6: CLOSING THE DEAL

As you approach closing, finalize financing and ensure lender approvals and documentation is complete. Legal and regulatory filings must be handled, including FAA registration and lien clearances. A neutral escrow company coordinates the simultaneous transfer of funds and title. Once complete, the aircraft is ferried to the agreed delivery location, and you assume operational control.

STAGE 7: POST-CLOSING PLANNING

Ownership doesn’t end at closing; it begins there. Decide whether to operate under Part 91 (private use) or Part 135 (charter). Many owners select a management company to simplify crew hiring, maintenance scheduling, and compliance. This is also the time to plan upgrades, whether installing Wi-Fi, refreshing interiors, or cosmetic enhancements. Finally, consider long-term strategy — how long you plan to keep the aircraft, when you might sell, and what your upgrade path looks like.

The private aircraft buying process is not just about acquiring an aircraft; it’s about making a long-term strategic investment that impacts your business efficiency and personal lifestyle. Each stage requires expertise, precision, and foresight.

At Holstein Aviation, our IADA-certified team guides clients through every step — from mission analysis and market research to closing and beyond. With decades of transaction experience and global reach, we ensure every client makes the right decision, the first time.