2025 March

Business use of aircraft is often deductible, but the flights must be well documented to maintain these deductions. In addition to keeping your logs and tracking the passenger flight details, the IRS requires that all business use of aircraft be documented contemporaneously and in writing.

So, what does this mean and how do you meet these requirements? 

Written and Current Information

First, the information needs to be contemporaneous, or gathered at the time of the flight. Although there are opportunities to go back and obtain additional information, such as affidavits and statements, they will focus on what was available at the time of the flight.   

Second, this information needs to be in writing. With today’s technology, this is much easier, but the idea that everything is business no longer flies with the IRS (pun intended).

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Four Ways to Document Business Flights

There are several ways to adequately document your flights, below are four common practices:

• Emails. Send an email before the flight discussing the upcoming meeting, then follow up and discuss the results afterward.
  
  
• Agendas. Draft meeting agendas before the meeting and keep meeting minutes. Consider circulating in the emails above.
  
  
• Calendars. Create a calendar invitation and include the location and attendees.
  
  
• Photography and Promotion. Social media posts, videos, pictures and other media can both help and hurt you. If you post about attending a concert or a game, but mark the flight as business, the IRS may be able to find this information and argue otherwise.
  
  

Detailed Trip Sheets

Another best practice that I recommend is to keep “trip sheets” for each flight on the aircraft. This can be a one-page document completed by someone with knowledge of the flight details. Include the passenger list, purpose of the flight and other information useful for an audit. I recommend that these be signed and dated to show they were timely created.

Although it’s important to document your business flights, you don’t want it to be burdensome. The best information-gathering process will vary from owner to owner. 

Be sure to talk to your tax advisor and include your team in the process. That way, everyone can understand their role and help make all of the necessary information available.

Spring is around the corner—a season of change. And that’s timely, given what we’ve seen in the news so far; 2025 is shaping up to be a year of change.

From tariff threats and evolving geopolitical dynamics to inflation that refuses to ease, there’s a good potential for turbulence on the horizon.

So, the best advice? Buckle up.

Finance Rates: Volatility Persists

From a finance perspective, rates continue their volatile trend. Looking back at our key indicator—the 10-year Treasury—we’ve seen a 0.21% rate decrease since the last issue of The Plane Truth as of early March.

Keep in mind, we’ve seen rates go up and down in various amounts of the past year, so it’s possible rates may increase back to that level we saw in February, if not higher.

On the other hand, it’s also possible rates stay steady or decline further. As I said before, buckle up.

What about the Federal Reserve and their interest rate setting? After holding rates steady at their last meeting, all eyes are on inflation and job data. A slowdown could spur the Fed to change course and lower rates later this year. 

On the other hand, if inflation stays stubbornly high, expect the Fed to stand firm and leave rates unchanged.

2025 Economic Outlook: Impact on Aircraft Financing

What does this all mean for aircraft financing and aircraft transactions? So far, 2025 has started strong with transaction volume.

Anecdotally, market activity is healthy, and our team at Scope has been pleased with the pace of closings.

This is encouraging. But as we enter into spring, be sure to keep those seatbelts fastened in case of rough air.

Importing a multi-million-dollar aircraft from a far-away country is a daunting task, especially when navigating tariffs and customs regulations. But with the right experts on your team, the right plane at the right place justifies the process.

Currency fluctuations can make a foreign aircraft a great buy, and aircraft are uniquely situated to be imported—they are the most mobile asset in the world!

Basic Customs Process

Any product entering the U.S. stream of commerce from overseas must go through the customs/import process. Just like a shipment of toasters or televisions, aircraft must follow a similar set of rules.

Until a prominent aircraft title company executive was indicted in December 2020 for customs violations (among other more dramatic charges), customs formalities were often overlooked. Now, there is no excuse.

The customs process, when managed properly through an experienced customs broker, is not terribly complicated, nor terribly expensive.

The customs broker will typically provide a detailed set of instructions, including the required documentation. A limited power of attorney form is required for the customs broker to complete the process. Otherwise, the documents are fairly standard: registration and airworthiness certificates, a commercial invoice, and often some other paperwork necessary to establish an exemption from tariffs.

The Cost of Customs

Customs costs, including broker fees, are typically less than $10,000 on a $10,000,000 aircraft. This includes a flat cost component and a small variable amount based on the aircraft value. The customs process is more to measure the flow of goods into and out of the U.S. than a governmental money-grab.

Flight details must be coordinated with the customs broker at least 24 hours before the aircraft’s departure to the U.S. The customs broker can help pick a suitable airport to handle the customs process. Last time I checked, there were about 50 to choose from. Each airport has its pros and cons, depending on the planned flight path and the day of the week and time of arrival.

How Tariffs Impact Aircraft Imports

Nobody has escaped the constant talk of tariffs over the past few months. While tariffs may serve as an international negotiating tool (hammer), they often lead to higher costs for consumers. They can also be especially harmful to industries that rely on international supply chains.

Perhaps worst of all is the uncertainty the threats of tariffs create, making it difficult for businesses to plan. The early March stock market fluctuations reflect this challenge.

On March 4, the U.S. implemented a 25% tariff against most Canadian products, including Canadian-manufactured aircraft (e.g., Bombardier and certain Diamond aircraft).

While these tariffs were temporarily lifted a few days later, the confusion has set in. Further, tariffs have been threatened against the EU, which would also affect Dassault Falcon aircraft.

Key Considerations for Aircraft Tariffs    

The potential tariffs on any particular aircraft are very fact-specific, but there are a few key items to keep in mind when planning:

• Manufacturer’s origin. Generally, tariffs are based on the country of manufacture, not the country where the plane is registered or where it is arriving from.
  
  For instance, if tariffs were in effect against Canadian products, then a Bombardier product could be subject to tariffs whether it’s coming from Canada or England. But a U.S.-manufactured Gulfstream or Textron aircraft coming from Canada would not be subject to the tariffs.

• Timing. Tariffs are due when the plane arrives in the U.S. to clear customs, not when title changes. If a plane arrived in the U.S. and cleared customs on March 1 before tariffs took effect, no tariff would be required. This remains true even if the transaction was completed weeks later after the tariffs were in effect.
  
  Likewise, if you bought a plane overseas before tariffs took effect, the timing of the purchase wouldn’t matter. Tariffs would still apply if the plane wasn’t imported to the U.S. until after they were in effect.    

With tariffs and an intercontinental trade war brewing, the purchase agreement should specify what happens if the tariff environment changes mid-transaction.

All parties should also endeavor to get the plane imported through U.S. customs as soon as possible before tariffs could affect the foreign-made plane that could be affected.

Stay tuned for upcoming articles that break down the challenges of buying a foreign aircraft—and how to navigate them with confidence.

Part 2: Aircraft Title: Registration and Deregistration

Part 3: Airworthiness: How to Get the Aircraft Ready to Fly

Part 4: How to Balance Taxes Between Multiple Jurisdictions

Part 5: Logistics: Where to Inspect the Plane and Complete Closing?

Part 6: Contractual Quirks of Foreign Transactions

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, 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.

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Should you worry about your aircraft insurance renewal that's due within 30 days? The short answer is: No. 

The aviation insurance underwriting community is very small by comparison to the overall insurance market for other property and casualty type risks. There are only about 20-22 aviation insurance underwriting companies here in the U.S. that cover aircraft hull and liability policies. 

Of those 20-22 markets, only a faction of those are viable for mid and large cabin aircraft–typically 8-9 in total. If you pare things down to light piston aircraft, there are about 10 markets that underwrite light piston policies. So depending on what you operate the amount of viable insurers is a smaller subset of those 20-22 total insurers. 

The aviation insurance market is for the most part “captive.” This means the majority of the aviation insurers in the turbine space only accept a submission from one broker and it’s “first-come, first-served”. 

For example, you can’t own a Challenger 350 and call five insurance brokers expecting you’re going to get all of them to quote the policy. The underwriters in this class work as noted on a first-come, first-served basis. Thus, the first broker that approaches them on a specific policy is the broker of record who will receive their quote. That is, if they’re indeed interested in quoting you. 

Insurers generally don’t quote policies 45-60 days out from the expiry date. Typically the broker gets traction with interested underwriting carriers inside of 45 days and in most cases inside of 30 days. 

As such, if your insurance broker is being completely thorough in the market, you should receive your renewal proposal within 2-3 weeks of the policy expiration date. Thoroughness is what you should expect in your broker, but also transparency. Your broker should outline the underwriting markets that they shopped your policy to, and which replied/declined or quoted the risk. 

Lastly, do not expect to receive quotes from every insurance carrier as insurers won’t “quote just to quote” each year. If an insurer has quoted your business in prior year(s), and didn’t obtain the business, they may not offer terms the subsequent year on your policy. Your specific risk may not perfectly fit in the insurer's underwriting box based on the underwriting metrics associated. This depends on limits carried, insured value, single-pilot operations, dry leases, etc. 

At the end of the day, you should receive your renewal package from your broker about 2-3 weeks prior to your policy’s expiry. That window will allow plenty of time for you to review the options in the market, ask questions and secure any revisions needed to the formal insurance proposal. 

Binding a policy takes a broker mere minutes so once you give your insurance broker the “ok” you’ll promptly have an insurance binder evidencing your coverage for the coming year’s policy.

Bizav shows and events like NBAA Leadership Conference, Corporate Jet Investor and NBAA Business Aviation Convention & Exhibition are critical opportunities to strengthen relationships, build credibility and close deals. 

But with high costs and packed schedules, there’s no room for wasted time or resources. Without a focused strategy, companies risk leaving with nothing but a stack of business cards. Success hinges on three key areas: preparation, execution and follow-up.

Pre-Event: Plan with Precision

Winning at an event starts weeks—if not months—before showtime. Every dollar spent should be tied back to a specific business goal. 

Are you there to close deals, strengthen existing relationships, find referral partners, or recruit talent? Set clear, measurable objectives so every action is intentional. Write them down and visualize how to make it happen.

Consider these pre-event planning practices:

Target Key Attendees: Research who’s attending—decision-makers, influencers, and potential partners.

Book Meetings in Advance: Don’t wait until you’re at the event to make connections. Reach out early via LinkedIn, email, or a warm introduction from a mutual contact. Aim to lock in meetings with at least three high-value prospects per day.

Plan Private Engagements: Face-to-face time is invaluable. Host a private breakfast, VIP cocktail event, or exclusive demo at a nearby FBO. At the NBAA Leadership Conference, consider scheduling an intimate dinner with key executives as it may be more valuable than a dozen random booth conversations.

Pre-Event Social Media Engagement: Announce your attendance on LinkedIn, tag event hashtags like #CJIMiami, #NBAALeaders or #NBAA2025BACE or #NBAASDC, and comment on posts from target prospects to increase visibility before the show even starts.

On-Site: Be Intentional, Not Just Present

Simply being at the event isn’t enough—every interaction must be strategic. Consider how you “show up” at the show:‍

Position Yourself as a Connector: Instead of just pitching your services, focus on introductions. Connecting two industry contacts can build goodwill and strengthen your credibility.‍

Engage the Right People: At NBAA BACE, don’t just work the exhibit hall—identify VIP networking events or after-hours gatherings where high-value decision-makers are more accessible.

Use Customer Stories to Sell: Instead of rattling off aircraft specs, share real success stories of how your services solved a problem for a flight department, charter operator, or aircraft owner.

Leverage Social Media in Real-time: Post key takeaways from speaker sessions, tag new connections in LinkedIn posts, and use event hashtags to increase visibility beyond the show floor.

Leadership’s Role: Setting Expectations & Evaluating Performance

For leadership teams, sending employees to industry events is an investment that should yield measurable results. Set clear expectations regarding how team members should engage with prospects, conduct themselves at networking events, and track their interactions. 

As a leader, ensure that your team members aren’t just attending events but are actively contributing to the company’s growth.

After the event, schedule a “hotwash”—a structured debrief—to review the sales pipeline, analyze what worked and what didn’t, and refine strategies for future events. 

Did pre-scheduled meetings lead to meaningful follow-ups? Were key decision-makers engaged effectively? Were there missed opportunities? 

A focused post-event analysis helps teams continuously improve and extract more value from every conference.

Post-Event: Convert Conversations into Business

The event isn’t over when you pack up—it’s just the beginning. Here are recommendations to convert those conversations into business opportunities.

Follow Up Within 48 Hours: Send personalized emails referencing specific conversations or better yet PICK UP THE PHONE AND CALL. Example: “Great meeting you at BACE—you mentioned the need for more flexible charter availability. Let’s schedule a call to learn more about your priorities and what options exist.” Most sales people don’t do this step so- it will set you apart.

Keep the Conversation Going: Provide value beyond the event. Send a case study, a white paper, or an introduction to a relevant contact.

Track and Nurture Leads in a CRM: Don’t let valuable connections go cold. Assign next steps and set reminders to follow up at the right time.

Reconnect at the Next Industry Event: Business aviation is relationship-driven, and staying visible across multiple events strengthens trust, likability and credibility.

The Bottom Line to Maximizing Event ROI: The Bottom Line

Aviation events like NBAA BACE, Leadership Conference, and Schedulers & DispatchersS&D aren’t just networking opportunities. T—they’re high-stakes sales and relationship accelerators. 

A successful event isn’t about how many people you meet, but how many turn into lasting business opportunities. With strategic planning, intentional engagement, and diligent follow-up, these events become revenue-generating investments, not just expenses.

Lately, in conversations with industry colleagues, one thing is clear—business aviation maintenance is changing fast. Technology, labor shortages, political headwinds and supply chain issues are reshaping the landscape.

Here’s a look at some key trends currently shaping the industry:

The Growing Importance of a Maintenance Tech Stack

Aviation maintenance is becoming increasingly digitalized, with operators adopting integrated tech stacks to improve efficiency. Advanced Enterprise Resource Planning (ERP) and Mx-tracking systems, predictive maintenance software and electronic record-keeping solutions are reducing administrative burdens and improving fleet reliability. 

AI-driven analytics, combined with aircraft Central Maintenance Computers (CMPs), are also optimizing maintenance schedules by predicting failures before they occur. These tools streamline compliance and enhance operational decision-making, making aircraft maintenance more proactive rather than reactive.

Managing Maintenance with a Labor Shortage

The ongoing shortage of skilled aviation maintenance technicians remains a challenge, forcing companies to rethink how they attract and retain talent.

Business aviation organizations are investing in apprenticeship programs and partnerships with technical schools. They’re also attracting new talent into the workforce with improved compensation packages. 

At the same time, aviation MROs and operators are leveraging automation, better planning tools and AI-powered scheduling to maximize efficiency with a lean workforce. Simplifying administrative tasks with digital solutions is also helping technicians focus more on hands-on maintenance rather than paperwork.

The Impact of DOGE

The Department of Government Efficiency (DOGE) initiative is looking to drive greater efficiency which could translate into a potentially downsized FAA. (I’ve already heard from more than one operator that delays in new aircraft conformity inspections are to be expected.) 

DOGE’s focus on streamlining regulatory processes, reducing paperwork and encouraging automation will no doubt put more pressure on MROs and operators in the short to medium term. With reduced FAA resources, maintenance teams executing repairs and overhauls more swiftly, reducing aircraft downtime and enhancing operational efficiency, will take on added importance.

Continued Parts & Supply Chain Challenges

Supply chain disruptions continue to impact aviation maintenance, with longer lead times for critical parts and rising costs. The industry is responding by increasing the use of 3D printing for on-demand manufacturing, parts pooling programs, and deeper supplier partnerships. 

Companies are also stockpiling key components to avoid delays and investing in predictive analytics to better anticipate part needs before shortages arise.

Expansion of Aviation Maintenance Capacity

To address growing demand and operational pressures, major MROs, OEMs, and operators are expanding their maintenance facilities and capabilities. More hangars, service centers, and mobile maintenance units are being introduced to handle increasing fleet sizes and maintenance requirements. 

This expansion is being driven by existing industry Mx players and (very) large operators seeking faster turnaround times and improved service availability.

Looking Ahead

Business aviation maintenance will continue its transformation in 2025. Companies that embrace tech stack integration—eliminating duplication, cutting errors and saving time—will gain an edge. Success will also hinge on workforce development, navigating regulations and strengthening supply chains. Those who adapt will thrive in an industry that never stands still.

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