CASE STUDY
The Client:
A start-up charter company and flight school launched by experienced aviation professionals seeking to build a dual-revenue business model serving both charter clients and pilot training students. With plans to operate a Cessna CJ3+ for charter services alongside Diamond DA62 and DA40NG piston trainers for flight instruction, the business represented a strategic approach to aviation entrepreneurship that would generate revenue from corporate travel while simultaneously developing the next generation of pilots through FAA-certified training programs. Backed by ownership with substantial business success and financial capacity demonstrated through other ventures, the start-up had the strategic vision and backing necessary for long-term success but faced the classic challenge confronting all new aviation businesses—the need to acquire aircraft and launch operations before generating the financial history that traditional lenders require for equipment financing.
The Challenge:
The start-up charter company and flight school needed to finance multiple aircraft—a new Cessna CJ3+ jet for charter operations plus two Diamond DA62s and DA40NG trainers for the flight school—but had not even completed a full year of financial statements, making traditional aircraft financing functionally impossible. First National’s standard underwriting process typically requires three full years of financial statements to properly evaluate credit risk and business viability, a threshold the start-up couldn’t meet regardless of owner qualifications or business plan quality. The company was essentially pre-revenue, having not yet commenced operations or generated the cash flow that would demonstrate business model viability to risk-averse lenders. Traditional aircraft lenders would immediately decline the opportunity based solely on the lack of operating history, unwilling to underwrite start-up aviation businesses given industry complexity, regulatory requirements, and the substantial capital required for fleet acquisition before the first dollar of revenue is earned.
Solution:
First National Capital recognized that start-up aviation businesses backed by financially strong owners with proven business success deserve access to aircraft financing even without operating history, and that First National’s deep aviation industry relationships and expertise enabled creative underwriting approaches unavailable to conventional lenders. Although the client was not initially familiar with First National, they knew the names and owners of several charter and management companies that FNC’s Aviation division had helped grow over the years—a network effect that provided immediate credibility and comfort for both parties. Leveraging the aviation expertise and industry relationships built by Rob Polichetti and First National’s Aviation Financing division, which had closed dozens of fleet deals for charter and management operators, FNC approached the transaction with confidence in its ability to assess aviation business viability beyond traditional financial metrics. The key to unlocking the financing was utilizing an existing corporate guarantee from the owner’s large, nationally recognized service company, providing First National with credit support that addressed the start-up’s lack of operating history while allowing underwriting to proceed based on the financial strength and business track record of the ownership group. First National’s credit team worked directly with Textron on the new CJ3+ delivery, keeping the process seamless for the client and demonstrating the operational coordination capabilities that aviation transactions demand. This comprehensive solution enabled the start-up to acquire the complete fleet necessary to launch both charter operations and flight training programs simultaneously, establishing First National as the financing partner that will continue supporting fleet growth as the business scales and adds aircraft to serve expanding charter demand and training enrollment.
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