Aircraft ownership should come with a clear plan: how the aircraft will operate, how its expenses will be handled, what income the owner can expect, and how the owner will use it.

At ATD, we built our aircraft partnership approach by listening to owners. Their priorities were consistent: predictable bills, dependable monthly income, professional management, and a straightforward way to fly.

We brought those priorities together through a long-term lease model supported by historical operating data, capable forecasting tools, a dedicated sales team, and clear accountability.

The result is a simple arrangement for the owner: receive a monthly lease payment and pay separately when you fly.

Behind that simplicity is a business designed to put the aircraft to productive use.

Traditional charter-management arrangements often distribute revenue through a percentage split. In an 85/15 arrangement, for example, the owner receives 85 percent of charter revenue and pays the aircraft’s operating expenses, along with any applicable management fees. That structure gives owners participation in charter activity.

ATD’s lease approach gives owners another option: an agreed monthly payment, with the covered operating responsibilities assigned to ATD under the lease.

We organize the aircraft’s commercial activity around that commitment. Our sales team develops charter business, our pilots operate the aircraft, and our maintenance planning supports its ongoing service. Forecasting brings those activities together so that revenue expectations, costs, and maintenance schedules inform the same operating plan.

ATD’s monthly lease obligation does not depend on how many charter trips were booked that month. We take responsibility for generating the business needed to support our commitments.

That is an important part of the alignment between owner and operator. The owner supplies the aircraft. ATD supplies the operating capability and accepts the obligations of the lease. Both parties have a clear role in a long-term business relationship.

Here is a real working example from a jet in the ATD program.

Under its agreement, ATD pays the owner $53,000 per month and handles the covered operating expenses, including pilots, hangar, insurance, fuel, maintenance, and engine-program or reserve commitments.

The owner’s flying is billed separately at an all-in rate of approximately $5,200–$5,900 per flight hour. The range reflects airport fuel surcharges and unusually high landing fees. These figures are a working example; each aircraft and agreement has its own economics.

For the owner, the financial picture is easier to follow. There is a scheduled lease payment coming in and a defined charge when they fly. The lease is structured with the owner’s debt service in mind, providing an income stream intended to support their financing obligations.

That clarity has been one of the most valuable improvements we have observed in the owner experience. Pilots are handled. Maintenance is planned and managed. The owner can focus on the purpose of the investment and the travel it makes possible.

Fleet support adds flexibility to the arrangement.

With advance planning—typically more than 30 days’ notice—we can generally arrange use of the owner’s specific aircraft. Access to that particular aircraft is subject to scheduling. When it is unavailable, a comparable fleet aircraft may support the trip at that aircraft’s applicable owner rate, subject to availability.

This approach lets us coordinate owner travel with retail charter activity. Retail charter flying takes priority because productive commercial use supports the lease and helps keep owner flying rates manageable.

The best fit is an owner who wants access to private aviation while putting the aircraft to work as a business asset. Owners flying approximately 50–60 hours annually are often well suited to this approach, leaving meaningful availability for commercial operations.

For someone flying fewer than roughly 75 hours a year, I believe this broader view of ownership is worth considering. That is a practical starting point, rather than a universal financial threshold. The aircraft can serve a commercial purpose throughout the year while also supporting the owner’s travel.

Selecting the right aircraft is where that plan begins.

Not every jet is suited to this model. We evaluate aircraft age, operating history, maintenance requirements, engine programs, marketability, and suitability for charter demand. Historical operating models and forecasting tools help us assess how those elements fit together over time.

We then customize the lease around the aircraft and the owner’s objectives. Agreements can range from three to fifteen years, or longer for an appropriate aircraft, with the term shaped by remaining useful life, overhaul schedules, maintenance programs, and debt service.

We encourage owners to think in terms of a long-term relationship, often with a ten-year outlook. That gives both parties room to plan through an engine overhaul cycle and other significant events in the aircraft’s operating life.

Engine condition, maintenance history, and appropriate upgrades help support an aircraft’s future marketability. We consider those factors from the beginning and manage the aircraft with its long-term value in mind.

When an overhaul or major upgrade requires additional investment or refinancing, we work with the owner to coordinate the decision with the lease economics and revised debt service. The owner remains responsible for their financing, while ATD’s contractual payment provides a defined foundation for planning.

Depreciation can add another dimension to the ownership strategy.

A recent aircraft promotion caught my attention because it led with the potential depreciation benefit. I understand the appeal. For an eligible owner, accelerated depreciation can be a meaningful part of an acquisition—but its greatest usefulness comes when it fits into a sound ownership and operating plan.

Federal rules currently allow 100 percent bonus depreciation for certain qualifying property acquired and placed in service after January 19, 2025. Aircraft eligibility and the owner’s ability to use the deduction require individual review. A depreciation deduction reduces taxable income; it is not a reimbursement of the purchase price. [1]

We encourage owners to work with their tax advisers to align the acquisition with their income, ownership structure, and long-term objectives, including any applicable passive-activity and at-risk limitations. [2]

ATD’s role is to provide the operating relationship that supports the plan: a suitable aircraft, professional management, an accountable sales effort, and clearly defined lease commitments. The owner’s advisers determine how the tax benefits fit their circumstances.

What makes this model work is the combination of those disciplines.

Technology helps us evaluate information. Historical operating experience gives the forecasts context. A capable sales team turns the commercial plan into bookings. Clear responsibilities keep everyone focused. Simplified billing makes the relationship easier for the owner to understand.

Most of all, the model reflects what our customers asked for. They wanted more stability in the financial side of ownership and a practical way to enjoy private flying. We listened, built the operating plan around those priorities, and made accountability central to the agreement.

Every aircraft brings its own operating requirements, financial commitments, and opportunities. At ATD, we treat each jet as its own business, with a clear plan, defined responsibilities, and attention to the goals of both the owner and the operator.

There are risks in aircraft ownership, including changes in operating conditions, aircraft value, and either party’s ability to fulfill its commitments. We work hard to reduce those risks through careful aircraft selection, realistic forecasting, maintenance planning, and disciplined operations. When something unexpected comes up, we approach it as partners: communicate openly, work through the options, and find a solution that supports both parties’ goals.

That reflects the Midwestern values we bring to our work—keep your word, take responsibility, and treat the other person’s investment with respect.

For the owner, success means a dependable financial relationship, a well-managed aircraft, and access to flying that meets their expectations. For ATD, it means operating the aircraft safely, serving customers well, and building a profitable business that can sustain its commitments.

Both sides need to make money, meet their goals, and feel that the relationship is delivering what they expected. That takes ongoing attention and honest conversations.

We both win, or it is not worth doing. That is the foundation of a lasting ATD partnership.

References

[1] Internal Revenue Service, Publication 946: How To Depreciate Property https://www.irs.gov/publications/p946

[2] Internal Revenue Service, Publication 925: Passive Activity and At-Risk Rules https://www.irs.gov/publications/p925