Working with a lender who “gets it”
Ever wonder what makes a lender truly understand aviation? Mike Smith breaks down 50 years of hard-earned lessons from Scope Aircraft Finance and five ways to spot a lender who really “gets it.”
In 1975, an engineer decided to start a small aircraft leasing business in Ohio to help others appreciate the joy of aviation. Now, 50 years later, Scope Aircraft Finance is an industry leader in providing aircraft loans in the turboprop and light jet markets.
Looking back, our organization has navigated a lot in the last 50 years—from recessions (both normal and “Great”) to pandemics. We’ve learned how to navigate the good times and bad.
I share this because I think it’s important to consider the organization's history and experience when financing your next aircraft purchase.
If you do a quick Google search (or do we say “ask ChatGPT” now?), you’ll find there are several aircraft lenders in the industry who also share a long history of funding aircraft loans.
There is tremendous value in working with a lender who “gets it.”
What does “gets it” mean?
In honor of our 50th anniversary, here are five examples of how a lender might demonstrate they “get it”:
- The lender asks questions about your plans for aircraft ownership and works to build a loan structure that makes sense for both borrower and lender.
- The lender acts with urgency to serve your needs as an applicant and borrower.
- The lender communicates regularly throughout the underwriting, approval, and closing process.
- The lender understands phrases like “the FAA in Oklahoma City” or “this aircraft qualifies for the International Registry.”
- The lender demonstrates accountability for getting the job done right the first time.
As we continue to navigate the rush to year-end, and financing is of consideration for your purchase, reflect on these examples of what demonstrates an experienced lender who “gets it.”
In the end, it’s your aircraft purchase and you should work with people you want to work with.
Disruption in the Aviation Insurance Marketplace?
The aviation insurance market is shifting fast. Tom Hauge breaks down the new direct and traditional players shaking up owner/flown turbine coverage and what it means for aircraft owners.
Direct Writers and AVEMCO
The 3rd and 4th quarters of 2025 are witnessing disruption in the aviation insurance space. Aviation insurance underwriting companies serving the owner/flown and professionally flown turbine segment have, up to now, been accessed only via an aviation insurance broker. AVEMCO is the one noteworthy ‘direct writer’ of aviation insurance—meaning an aircraft owner can call AVEMCO directly to secure a quote. AVEMCO, however, has a limited appetite/capacity and generally only insures aircraft with a hull value of $350k or below. Most owner/flown and professionally flown turbine aircraft are certainly valued above the AVEMCO capacity threshold; therefore, it generally wasn’t an option to insure a turbine aircraft with a direct insurance writer like AVEMCO.
Emerging Direct and Traditional Insurers
As of mid-2025, a new direct insurance writer named 5X5 Aviation Insurance has entered the marketplace. As of this writing, they are only up and running in about 20–25 states. This means there is limited reach for aircraft insurance buyers seeking a quote from 5X5. I would expect that by the end of 2025, 5X5 will likely be serving three-quarters or more of the USA (states).
Adding to the disruption in the aviation insurance market is a new carrier, Class A. Class A is a traditional insurer that is accessed via a broker. Its current focus is solely on owner-flown and professionally flown turbine risks. However, Class A is deploying market-leading 'tech' to evaluate and price risk. Underwriting decisions are utilizing tools such as a customer’s ADSB and real-time flight data to select desirable risks and reward pilots with sharper rates and a broader policy form. As of this writing, Class A operates in 45 states and expects full USA coverage during 4Q2025.
Impact on the Owner/Flown Turbine Segment
The owner/flown turbine segment of the aviation insurance market arguably saw the most significant premium impact during the ‘hard market’ conditions of 2018–2024. With the addition of both Class A, a new traditional insurer, and 5X5, a direct insurer focused squarely on that business segment, we will see pricing softening with the enhanced insurance carrier options. There is no question that Class A’s tech- and data-driven approach, as well as 5X5’s direct-to-consumer business model, will contribute to continued insurance market disruption.
Hard or Soft Deal: When Can A Buyer Bail Out?
Many buyers obsess over price and overlook critical terms in their aircraft purchase agreement. John Farrish breaks down “hard” vs. “soft” deals, showing when you can walk away and when you can’t without losing your deposit.
Many aircraft buyers and sellers are so fixated on the price that they neglect other key terms of their aircraft purchase agreement. An important commercial term that everyone should know going in is the point at which a buyer can’t cancel the transaction without losing their deposit.
There are two main deal variations concerning when a deposit is nonrefundable and whether the buyer must buy the plane or lose the deposit, assuming the seller delivers the plane in proper condition.
Soft Deals
The first, which was more common in the pre-COVID buyer-friendly market, is a “soft” deal. Essentially, the buyer can perform a pre-purchase inspection, receive the results, reject the aircraft for any reason, or even for no reason, and get their deposit back.
In this case, the buyer would typically reimburse the seller for some of the flight costs incurred and ensure the inspection facility is paid before receiving the deposit.
Hard Deals
The second, which became the norm in the seller-friendly post-COVID buying frenzy, is a “hard” deal. After the inspection, the buyer may only reject the aircraft if it will be unable to meet the required conditions (often the “delivery conditions”) within a certain timeframe, or if there is material damage or material corrosion. In other words, only for objective and pre-negotiated reasons. It doesn’t matter what other things might scare a buyer; if the seller repairs anything required, then the buyer has to complete the transaction or lose their deposit.
In a hard deal, it is important for a buyer to perform some initial due diligence, particularly on subjective items. I often refer to this as the “sniff test”—does the plane smell like the Marlboro Man lived in it? Or does it smell like a wet dog?
This is also the time to evaluate cosmetic items. A rough paint job, scratched seats, or pen marks on the sidewalls will not allow a buyer to reject the plane after the inspection in a hard deal.
Initial due diligence should include reviewing the logbooks. Although logbooks could technically be complete with no “material damage,” there still could be enough “hair” in them to cause a buyer to walk away. In a hard deal, unless logs are incomplete or there is evidence of material damage, the buyer will be stuck with the plane or lose the deposit.
Choosing the Right Deal
There are solid reasons for soft and hard deals, particularly when balanced against the scope and speed of the inspection, demand for the aircraft, and the promised delivery conditions.
For instance, if a seller is promising only to fix airworthy items, a soft deal could make sense. If a seller is promising to deliver the plane with everything working in tip-top shape and there are multiple offers, a buyer offering a hard deal could make sense. In the current market, we often see both.
Whether you negotiate a soft or hard deal as buyer or seller, make sure it is addressed and that you understand it. There is not much worse for a buyer than realizing you can’t walk away from a plane you don’t want, or for a seller than losing a buyer when you thought the sale was firm.
Work with Professionals
At the risk of sounding like a broken record in these articles, it is imperative to work with an experienced aircraft broker and attorney to negotiate these items at the outset in the letter of intent, as they are often hills to die on for some buyers or sellers.
It is better to find out early than to discover two weeks later, when negotiating the purchase agreement, that the parties cannot agree on a hard or soft deal.
This article is not intended, nor should it be construed or relied upon, as legal advice. The comments, recommendations, and analysis expressed in this article are those of the individual author, John Farrish, and are purely informational. This article does not create an attorney-client relationship between you and the author or his law firm. If specific legal information is needed, each person should retain and consult an attorney with knowledge of the subject matter.
BizAv Owners: the market just told you where the gap is. Are you listening?
High-touch service in business aviation is underserved - are you stepping up or falling behind? Dustin Cordier breaks down exactly where owners see the gaps and how you can fix them with actionable systems for care, certainty, and curation.
This year’s NBAA‑BACE surfaced a clear theme: investors and seasoned operators believe high‑touch service and curated experiences are underserved.
Two examples: BOND (an owners‑only, Bombardier‑focused fractional with elevated hospitality and embedded OEM support) and Kenny Dichter’s REAL SLX / REAL JET (an experiences platform feeding an asset‑light, no‑deposit charter brokerage), arrive with different models yet a shared premise: clients will pay for care, certainty, and curation.
That observation isn’t limited to operators. It touches OEMs, MROs, brokers, FBOs, training, catering, finance, and tech providers - anyone shaping the owner’s door‑to‑door journey.
The question I’d invite you to consider is straightforward: Are you competing on hours and assets, or on outcomes and feelings?
If the latter is true, your systems must make reliability and hospitality measurable, repeatable, and visible.
Where to focus (three lenses)
Service Promise (care)
Define the baseline experience you will never compromise - clear pre‑flight personalization, warm day‑of communication, and cabin standards appropriate to aircraft class.
Ask: Would a discerning client notice the difference on their very next trip?
Reliability System (certainty)
Move beyond quoting availability or service to guaranteeing it - capacity discipline, transparent service agreements for AOG‑to‑airborne, and tighter OEM/parts pathways.
Ask: Can you prove uptime with data the client trusts?
Journey Orchestration (curation)
Own what happens before and after the flight or service - ground logistics, FBO handoffs, and (for some segments) event access that aligns with the traveler’s purpose.
Ask: Are we removing friction for clients who previously accepted “just how it is”?
Three practical moves with a question and a metric
1) Institutionalize hospitality (for any role that touches the customer)
What to do: Define and standardize the “moments that matter” in your segment - what a great first touch, update, handoff, and wrap‑up look like - so care is designed, not left to heroics. Train for tone and timing; script the minimum viable touches and empower teams to personalize above that line.
Question to ask: Could a new client tell - after one interaction—that our standard of care is different?
Core metric: First‑touch wow rate (FTWR) - % of new/returning decision‑makers scoring 9–10 on “Based on this interaction, would you choose us again?”
2) Operationalize reliability (make promises measurable)
What to do: Convert promises into agreements and track variance publicly (internally and, where appropriate, with clients). Tie capacity, parts, staffing, and partners to those agreements. Build early‑warning signals so you renegotiate expectations before you miss them.
Question to ask: Are we guaranteeing outcomes - or selling intentions?
Core metric: Promise‑Keeping Index (PKI) - % of commitments delivered on time, as specified, the first time.
3) Curate the total journey (own the thread, reduce handoffs)
What to do: Give the client a single thread of care - one number to text/call, one owner through the lifecycle - and orchestrate partners behind the scenes. Pre‑compute alternates, communicate proactively during irregular ops, and close the loop with next‑day follow‑through.
Question to ask: Would the client describe their day as “effortless end‑to‑end” without needing to manage us?
Core metric: Single‑Thread Resolution Rate (STRR) - % of interactions resolved without the client re‑explaining or being bounced.
If you apply these three moves, you’ll raise performance across segments:
- Care (felt quality)
- Certainty (kept promises)
- Curation (effortless orchestration)
Which one will you pilot first for 60–90 days, and what’s the smallest client group that would give you a clean read?
How to start
Run a 90‑day pilot on a defined route set or client group. Publish the three metrics above, learn fast, and then scale what proves out.
Whether you align more with BOND’s owners‑only reliability thesis or REAL SLX / REAL JET’s frictionless‑access thesis, the takeaway is the same: intentional systems that deliver care, certainty, and curation are where the next margin, and loyalty, will come from.