Why Now
- Demand Surge: U.S. pilot training enrollment is up 20%+ from 2020–2024 (FAA).
- Fleet Expansion: Flight schools must meet student demand with technologically advanced trainer aircraft.
- Global Pull: International students are increasingly training in the U.S.
Investment Case
- Long-Life Assets: Cessna and Piper aircraft regularly operate for 30+ years, maintaining strong utility and resale value.
- Steady Income: Absolute net leases shift all operating costs to the school, generating low-risk, recurring monthly cash flow.
- Attractive Residuals: Aircraft often retain 50–65% of original value at lease maturity.
- Credit Quality: Leases are made to established, accredited flight schools, minimizing risk.
- Tax Efficiency: Leverage bonus depreciation and MACRS to write off aircraft over 5 years, enhancing after-tax returns.
Why It Works
This niche combines durable assets, strong cash flow, favorable tax treatment, and reliable demand driven by the global pilot shortage. With disciplined execution, it offers a resilient, high-yield investment uncorrelated with broader markets.
First published on peregrinehoward.com.
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