GLOBAL-WIDE: An introduction to Private Aircraft

At 45,000 feet above sea level, the horizon stretches into a kind of cosmic panorama, suggesting infinite possibility. The allure of private aviation stems from its capacity to comfortably traverse boundaries in a manner that merges great utility with great privilege. As with all things capitalism, however, those with the tools and the patience to see the big picture of private aviation stand to benefit most from it.

For years I have answered the question of what I do for a living by describing myself as “counsel to extraordinary people with extraordinary machines” or, as my eldest son recently put it to his friends, I “help rich people do their private jet stuff”. What I have not explained to him, yet – he is 11, after all – is that my day job is also an ongoing seminar in the shifting tides of wealth and power. In many ways, private aviation is a microcosm of modern capitalism: a complex, dynamic ecosystem that not only reflects, but also capitalises on, the ebbs and flows of economic cycles, global politics and evolving societal values.

As the global economy and geopolitics go through cycles of boom, bust and bizarre, those able to ascend above it – both metaphorically and, thanks to these extraordinary machines, literally – can seize a notable edge. To my mind, that truth crystallised acutely during the global viral turmoil a few years back. Leap ahead to 2025, and the world has reorganised economically, socially, politically in a pattern consistent with the cyclical nature of affluence and power. As ever, ultimate advantage accrues to those who relentlessly scan the horizon for emerging shifts, particularly from 45,000 feet.

A Market Recalibrated

That private aviation remains robust in 2025 may confound those who dismissed it as a relic of a bygone era of conspicuous consumption. The industry’s resilience is buoyed by a shifting global landscape where emerging hubs and nimble entrepreneurs are charting new courses. On the opposite sides of the Atlantic, however, a striking divergence has emerged. In markets where conditions remain conducive to aggressive growth – most notably in North America – private aviation is expanding with renewed vigour, thanks to an economic climate that encourages bold capital allocation and innovative financing. Conversely, in regions tempered by tighter regulatory and public scrutiny and lingering economic uncertainties, a more cautious approach prevails. Indeed, this widening transatlantic gap serves as both a cautionary tale and an opportunity for those with the insight to navigate distinct regional landscapes, reinforcing the idea that no market condition lasts forever.

Simultaneously, the industry has embraced measures that speak to a more conscientious era. We recognise that the large fortunes of our clients do not exist in a vacuum: amid societal and political pressure on them and, in-turn on us, the sector is investing in sustainable aviation fuels (SAF), carbon offsets, next-generation materials and cutting-edge propulsion research. Even as the demand for new and novel solutions accelerates in some regions, the market’s very core is being reconstituted by these environmental imperatives. The result is a tiered tableau of growth, where innovation converges with regulatory realism, that challenges both old paradigms and emerging opportunities alike.

An Industry Recalibrating

In pockets of private aviation, the barrier to entry feels perilously low and we are seeing an uptick(tok) of novices without proper credentials marketing themselves as expert aviation advisers. It has become evident that people lacking thorough understanding have thrust themselves into some prominence – charter brokerage, acquisitions consulting, questionable advisory roles – often relying on flash over substance. Ultimately, the objective is ensuring that those who allocate significant capital to private aviation do so fully informed with both eyes open, hopefully guided by genuine expertise. Even for the wealthiest clientele, misguided decisions carry a cost. I have never advocated mindless gatekeeping, but the sector’s failure to uphold reliable professional standards will erode trust and imperil the structure upon which the real value has been built over time. Absent a concerted effort to preserve legitimate expertise, the entire market could dilute its core proposition of consistency and confidence.

Financing: From Fandango to a Full Dance Card?

In a textbook echo of cyclical markets, lenders receded from private jet financing during the downturn. Yet, they have been slow to rush back in once renewed demand became evident – perhaps a good sign, given that an observation equally applicable to any overheated moneymaking sector is that history shows that capital often overshoots when returning to it. As ever, prime clients with new or newer aircraft still attract the most favourable terms. Traditional, asset-backed loans remain dominant though lease products continue to gain an increasing market share from a very low base. Generally, from an owner’s perspective, what is seen as sometimes being a complex, intrusive and expensive fandango is enough to explain why only a small percentage of the worldwide fleet is financed. Many astute aircraft owners have leveraged their aircraft – whether previously unencumbered or newly acquired – to bolster liquidity and seize emerging opportunities. In doing so, they not only navigate the complex interplay of asset management and market timing but also underscore the inherent asymmetry between regions that are bullish versus those that remain measured.

Ownership and Use Models: Malleable and Aspirational

This is one area where transformational leaps often arise from an unyielding drive to overturn conventional wisdom in private aviation and scale novel solutions far beyond the confines of reality. But then they, well, sort of tend to blow up. It is a near-universal law by now that “the Uber of private aviation” is a phrase best left out of any conversation that does not begin with “Want to hear a joke?”

The concept of partitioning ownership costs appeals to an emerging class of affluents not yet prepared to carry the full financial burden. In buoyant arenas such as North America, the appetite for partitioning ownership costs has and continues to gain traction. Meanwhile, in regions where caution still tempers the market – often reflective of a more conservative Asian approach, for example – traditional models of sole ownership continue to hold sway, their allure undiminished by the promise of liquidity events or bullish market turns. It is also noteworthy that as fractional usage expands, so do financing solutions tailored to these joint-ownership frameworks. Private ownership of private aircraft will, however, always remain the pinnacle of privilege to which most in the marketplace ultimately aspire.

Intermediaries, Deals Within Deals and Zero Trust Architecture

It is no secret that the private aviation marketplace functions as an ecosystem of intermediaries. As in any complex transactional marketplace, however, multiple layers of “consultants” vying for side fees can ultimately destroy trust. The interplay of regional market dynamics also means that intermediaries must not only navigate local nuances but also adapt to a market reality where the concept of “trust” itself is continually being redefined. Still, in environments where some markets are thriving and others remain circumspect, the integrity of every transaction matters.

Replete with elaborate rituals that have evolved over decades, the global secondary market for private aircraft in particular is hardly a paragon of transparency or efficiency – and it was never intended to become what economics terms a “perfect market”. In truth, it is much the opposite: prices can be swayed by individual actors, there is little in the way of strict regulation, products are far from homogenous, buyers do not always behave rationally, externalities loom large, transaction costs can run high and “perfect information” simply does not exist. Meanwhile, the practicalities of preserving transaction velocity – and sustaining the polished courtesies of deal-making – mean that truly comprehensive diligence often proves elusive. This is exactly why private aviation deals proceed from a legal and documentary standpoint on what I refer to as a “zero trust architecture” approach: every phase, from the Letter of Intent and escrow engagement to refundable deposits, inspections, purchase agreements, technical acceptance, and the entire closing mechanism, rests on. Of course, that is not to say these transactions must devolve into tense showdowns, but it does clarify the rhyme and reason behind why, in this industry, we do what we do the way we do it.

Don’t Hate, Arbitrate (and/or Mediate)

The private aviation marketplace can at times best be described by reference to Hobbes’ State of Nature, particularly the descriptors “nasty” and “brutish”. Still, I believe that most legal disputes between industry stakeholders need not be destructive lest they slip into insolence and naivety. When they do, it is often the entire ecosystem that suffers.

In an age where digital immediacy can transform minor disagreements into full-blown public spectacles at the speed of a LinkedIn post, the need for confidential, efficient dispute resolution has never been more pressing. From my legal vantage point, structuring transactions is only part of the equation. Equally critical is ensuring that conflicts are resolved while minimising the public drama that can harm personal and industry reputations and even destabilise markets. This is why, from a conflict-resolution standpoint, I continue to strongly advocate arbitration and/or mediation. The best way to shield the sector’s public image is to handle disagreements discreetly wherever possible. Private aviation and arbitration/mediation are a marriage made in law heaven. Indeed, my long-standing belief in the transformative power of arbitration and mediation in private aviation is more than a personal or professional preference; it is a mission to help safeguard the sector’s reputation.