FRACTIONAL AIRCRAFT OWNERSHIP
The benefits of private aviation without the capital-intensive cost of outright ownership
We specialize in fractional ownership financing from 1/16 share (50 hours) to 1/2 share (400 hours) for large corporate entities and for the business needs of high-net-worth individuals. We will be there throughout the financing process, offering thoughtful guidance while considering cash flow, tax consequences, and borrowing options to ensure that our clients obtain a financing solution that best meets their needs.
Loan Options *
Floating or fixed rates
Loan-to-values up to 90%
Amortization of 10-12 years
Terms to match your fractional operating agreement (typically 3-5 years)
Floating or fixed rates
Loan-to-values up to 90%
Amortization of 10-12 years
Terms to match your fractional operating agreement
(typically 3-5 years)
Requirements
Borrower must be a U.S. citizen or acquire the aircraft through a U.S. trust
Ownership must be purchased by a holding company
Recourse to the fractional owner is required
The aircraft must be N-Registered in the U.S.
Flexible End-of-Term Options
Clients have several choices at the end of their fractional ownership term. They can refinance to maintain their share, settle the remaining loan balance, or alter their investment by upgrading or downsizing their share. In the event of a sale, the fractional aircraft provider typically agrees to buy back the share at the current market value.
*All transactions are subject to credit approval. Eligibility for a particular Service is subject to final determination by First American. Some restrictions may apply.
GET STARTED
For more information, contact your RBC Wealth Management financial advisor for a referral to First American.
Equipment financing and leasing are offered by First American Equipment Finance, a subsidiary of City National Bank, and are subject to credit approval by, and documentation acceptable to, First American Equipment Finance. RBC Wealth Management employees may receive compensation from RBC Wealth Management for referring clients to First American Equipment Finance. Additional terms apply and can be found by visiting faef.com/terms.
RBC Wealth Management, a division of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC. City National Bank is an affiliate of RBC Wealth Management a division of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC, and an indirect wholly-owned subsidiary of the Royal Bank of Canada. City National Bank Member FDIC. Banking products and services offered by City National Bank are not SIPC insured and are subject to City National Bank’s terms and conditions.
Investment and insurance products offered through RBC Wealth Management are not insured by the FDIC or any other federal government agency, are not deposits or other obligations of, or guaranteed by, a bank or any bank affiliate, and
are subject to investment risks, including possible loss of the principal amount invested.
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