Aircraft Ownership Dynamics: Patterns of Duration and Transition in U.S. Commercial Aviation

We examine aircraft ownership patterns in U.S. commercial aviation using data combining FAA registration records and DOT operating statistics from 2004 to 2022. By linking legal ownership with actual operation, we document how the industry has transformed from airline-owned fleets to a financialized market where over 50% of aircraft are now leased. Our findings reveal: ownership duration shows initial concentrations in years 0-3 followed by steady but declining frequencies through year 15; financial institutions are involved in 71.0% of all transactions with negligible direct legacy-to-legacy carrier transfers; the ``Other" category (primarily trusts) now dominates both ownership (34.6% of unique aircraft) and transactions (81.7% participation rate); and legacy carriers deploy 20-44% of owned aircraft to regional partners, while low-cost carriers maintain 100% operational control. These patterns raise important questions about systemic risk as the industry's resilience increasingly depends on financial sector stability. The concentration of aircraft ownership among financial intermediaries creates potential vulnerabilities whereby disruptions in the financial sector could significantly impact airline operations and capacity allocation.