Even as the COVID-19 pandemic worsens in the U.S., the aircraft lending boom has created a feeding frenzy in the used market. Who knows when it will all come crashing down, but for now aircraft values are up—way up—and those who might not have considered aircraft ownership are taking the plunge. And some are getting stung.
One way to avoid traps is to avoid complicated deals. While it may be tempting to jump on a seemingly good deal on an aircraft in another country, closing that deal may be more difficult than you bargained for (if not impossible). The same goes for certain leaseback situations, and aircraft with unique modifications. There’s also the dilemma of a hardening insurance market. The takeaway: Keep it simple.