Family Office 2.0 Aviation Lending

Finance an aircraft.

Simulate the purchase: what it costs to own, what the loan looks like, what the tax code gives back, and what the aircraft is worth along the way.

Enter Interactive Mode

Cost of ownership: $1.6M a year, at 400 flight hours
Monthly payment: $172K on a $23.2M facility
Year-one tax saving: $9.5M from 100% bonus depreciation
Years of flying covered: 6.1 by the year-one saving

Cost of ownership

What it costs to fly.

The Embraer Praetor 600E, new, operated in North America. Fixed costs are the same whether it flies or not; direct costs follow the hours.

Annual cost by hours flown Year one, in 50-hour steps

$1.1M 200 h
$1.2M 250 h
$1.3M 300 h
$1.4M 350 h
$1.6M 400 h
$1.7M 450 h
$1.8M 500 h
$1.9M 550 h
$2.1M 600 h

Year	Fixed	Direct	Total	Per hour
1	$584,301	$980,712	$1,565,013	$3,913
2	$664,861	$998,052	$1,662,913	$4,157
3	$664,861	$1,024,056	$1,688,917	$4,222
4	$664,861	$1,032,160	$1,697,021	$4,243
5	$664,861	$1,063,384	$1,728,245	$4,321

Fixed 37% Direct 63%

Embraer Operating Cost Guide v26.02, used with permission. Fuel, labor rates and fixed costs from the Conklin & de Decker Report, April 2026; engine maintenance from Honeywell MSP 2026 rates.

The facility

Borrow against the aircraft, not the portfolio.

A term loan on a long amortization, with the balance due at the end of the term.

Equity in $2.6M at closing, the rest financed.
Interest over the term $9.4M before any tax treatment of interest.
Balance at term $18.2M due, refinanced or repaid from the sale.

Bonus depreciation 100% of $25.8M deducted in year one, for qualifying business use.
Tax saved $9.5M at a 37% marginal rate.
More than the equity in The year-one saving exceeds the $2.6M placed at closing.

Residual value

What the aircraft is worth along the way.

A planning curve, year by year, against the loan balance. The gap between them is the family’s equity in the aircraft, which can run negative at a high loan to value.

Aircraft value Loan balance

Year	Value	Loan balance	Equity
0	$25.8M	$23.2M	$2.6M
1	$22.7M	$22.6M	$73K
2	$21.3M	$22.0M	−$662K
3	$20.1M	$21.3M	−$1.3M
4	$18.9M	$20.6M	−$1.8M
5	$17.7M	$19.9M	−$2.1M
6	$16.7M	$19.0M	−$2.4M
7	$15.7M	$18.2M	−$2.5M
8	$14.7M	—	$14.7M
9	$13.8M	—	$13.8M
10	$13.0M	—	$13.0M

The protected note

Borrow at ninety, keep the cash working.

The cash not spent on the aircraft goes into a principal-protected note for the life of the loan: the full principal back at maturity, with the S&P 500’s gains up to a cap.

Notional $23.2M , the amount borrowed rather than paid.
Horizon 84 months, matched to the facility.
Cap 63% over the term, 9% a year on the two-year structure.

Floor $23,220,000 back at maturity, whatever the index does.
Most the note can pay $37.8M if the index is at or above the cap.
Covers the balance The principal alone exceeds the $18.2M still owed when the note matures.

The point

6.1 years of flying, paid for by year-one depreciation.

A $9.5M tax saving against $1.6M a year to own and fly the aircraft.

Hypothetical. For illustration only. Not a commitment to lend; subject to credit approval. Family Office 2.0 does not provide tax or legal advice. Operating costs are the Embraer Operating Cost Guide v26.02 for a new Praetor 600E in North America (used with permission), with hull insurance scaled to the chosen price; other aircraft will differ. Facility defaults are indicative: 90% loan to value, 6.45% fixed, a 7-year term on a 20-year amortization with the balance due at term. Bonus depreciation assumes 100% expensing of qualifying business-use property under current law; recapture on sale, state taxes and the alternative minimum tax are not modelled. The residual curve is a planning assumption of 12% in the first year and 6% a year after. The protected note is a hypothetical structure that scales the firm’s two-year indicative terms (100% of principal at maturity, S&P 500 price return up to a cap of 9% a year), held to maturity, before fees; terms are set at the trade date. Nothing here is a forecast. Indicative. Not a commitment to lend; subject to credit approval. Family Office 2.0 does not provide tax or legal advice.

A small number of families. An exceptional level of attention.

If you believe there may be a fit, we welcome a private conversation.

Request a private introduction