Aviation transactions are typically high in value, time-sensitive and international in nature. Whether the transaction involves the purchase or sale of an aircraft, a lease arrangement or the pre-purchase of flight hours, significant sums of money often change hands well before the aircraft is delivered or operated.
These transactions frequently involve multiple advisers, operators and intermediaries, sometimes across several jurisdictions. Even where the commercial intent is clear, the practical question of how funds are held and released can have a material impact on trust and execution.
Escrow accounts and third-party managed payment accounts are widely used in aviation to bring structure and certainty to these arrangements. They provide an independent framework that allows funds to be protected, segregated and applied strictly in line with agreed terms.
Payment risk in aviation often arises from advance commitments. Deposits, prepayments and maintenance reserves may be required long before the aircraft is delivered, registered or placed into service. If a transaction is delayed or fails, recovering funds can be difficult without a clear holding structure.
Jurisdictional complexity is also common. Aircraft may be registered, operated and financed in different countries, each with its own legal and regulatory environment. Enforcing contractual rights across borders can be slow and expensive, particularly once funds have passed into another party’s general accounts.
There is also counterparty risk associated with operators, brokers or special purpose vehicles. If an intermediary encounters financial difficulty, funds intended for a specific aircraft or programme may be exposed unless they have been properly segregated from the outset.
Escrow is frequently used in aircraft sale and purchase transactions to hold deposits and completion funds pending satisfaction of closing conditions. This ensures that funds are available but not released until title transfer, registration and documentation requirements are met.
In manufacturing or refurbishment contexts, escrow can be used to protect stage payments. Buyers can commit funds with confidence, knowing that release is tied to agreed milestones or inspections, while manufacturers or service providers gain assurance that payment is secured.
Escrow is also commonly used in jet card and similar prepaid flight arrangements. By holding prepaid funds in escrow, purchasers reduce the risk of non-delivery if an operator or broker is unable to honour future flight commitments.
Third-party managed payment accounts are used where ongoing payment administration is required rather than conditional holding. In aviation, this includes managing operating expenses, maintenance costs or lease-related payments from a ring-fenced pool of funds.
These accounts are particularly helpful where multiple parties need to be paid regularly, such as operators, maintenance organisations and service providers. Centralising payments improves transparency and reduces the administrative burden on aircraft owners or lessees.
Managed payment accounts also provide continuity and protection. If an operator or manager changes, funds remain segregated and accessible, allowing operations to continue without disruption or exposure to another party’s financial position.
Aircraft Purchase Escrow is suitable for buyers, sellers, lessors, lenders and their advisors involved in aircraft transactions.
It is commonly used where high-value assets are being transferred, where parties are based in different jurisdictions, or where technical, regulatory or financing conditions must be satisfied before completion.
Escrow is also frequently used by banks and financiers to manage funds during loan or lease closings, ensuring that payments are made only when all conditions precedent have been met.
Jet Card Escrow is suitable for individuals and organisations buying prepaid flight hours, jet card programs, fractional ownership deposits or other high-value aviation service credits.
It is also relevant for brokers, corporate flight departments, charter operators and advisors involved in structuring these arrangements.
Escrow is particularly useful where significant prepayment is required before services are delivered, or where regulatory or credit requirements apply.
Pricing depends on the structure, value and duration of the arrangements. There is no single fixed fee, as projects and payment flows vary.
Pricing usually reflects three main elements. First, the work involved in setting up the arrangements, including compliance, onboarding and preparation of the account documentation. Second, the ongoing administration of the account while funds are held. Third, the handling of payments or releases during the life of the project.
What pricing covers is the independent holding of funds, administration of agreed payment mechanics, record-keeping, reporting, all bank fees and support throughout the project. It does not cover legal advice, contract administration or dispute resolution, which remain the responsibility of the parties and their advisors.
If something goes wrong, the account agreement provides a clear framework for dealing with it.
If there is a mistake, delay or disagreement about instructions, funds remain safely held in escrow while the issue is addressed. We follow the process set out in the account agreements and do not release funds unless and until the agreed conditions are met.
If a party has a concern about how the account is being operated, we have a formal complaints process. This allows issues to be raised, reviewed and resolved in a structured way, with escalation routes available if needed.
We are a specialist provider focused on escrow and managed payment arrangements. Escrow is not an add-on to another service. It is a core part of what we do.
Funds are held securely and separately, with infrastructure designed specifically for escrow rather than adapted from other uses. Account opening is handled efficiently, and arrangements are administered through a dedicated digital escrow and payments portal, giving authorised parties visibility and a clear audit trail.
Advisors often recommend dospay because we sit independently of the transaction, operate within a regulated framework, have a proven track record and focus on doing one thing well: Holding and administering escrow funds in a clear, neutral and predictable way.
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dospay is a trading name of DOS & Co. Ltd, a company registered in England and Wales with company number 08294966.
DOS & Co. Ltd. is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (FRN: 833374) for the provision of payment services.
All of our GBP escrow and third-party managed accounts are segregated and safeguarded at the Bank of England.
