Buying and selling aircraft is a business built on trust. Most people in aviation are straight shooters, but every now and then, someone tries to pull a fast one. That’s why it pays to do your homework—especially when dealing with corporate-owned aircraft.
I almost got caught in a fraudulent deal once. Here’s what happened and how you can avoid falling into the same trap.
The Setup
A potential client reached out to list their aircraft with AirSpace Auctions. We went through the usual process—discussed the reserve price, set the terms, and everything seemed above board. Then he mentioned that he had a partner, which isn’t unusual. Many personal aircraft are owned through corporations or LLCs, especially for tax and liability reasons.
One of the first things I do when listing an aircraft owned by a business is verify ownership. I check the Secretary of State’s business registration records for the state where the FAA says the corporation is based. Sure enough, I found the corporation and an owner listed—but not the guy I was speaking with. That’s a red flag.
Digging Deeper
To cover my bases, I checked for variations of the owner’s name. The records showed the same name with slightly different spelling, which can happen. But when I tried to contact the listed owner, I hit a dead end.
At this point, something wasn’t sitting right. I asked the seller to provide the Articles of Incorporation or an LLC statement certifying ownership—standard practice for corporate-owned aircraft. He couldn’t. That sealed the deal for me. No paperwork, no listing.
This is a rule we follow for every corporate sale, and it’s the same requirement used by AIC Title, the company that handles our closings. If a corporate owner can’t prove ownership, the deal doesn’t move forward.
How to Spot Fraud in Aircraft Sales
While this case was about verifying corporate ownership, there are plenty of other scams floating around in general aviation. Whether you’re buying or selling, watch out for these red flags:
- “I’ll pay full price, no questions asked.” No real buyer drops a full ask offer without inspecting the aircraft. If they just want to send money right away, something’s off.
- “Let’s chat on WhatsApp.” Scammers often push for off-platform communication where they can’t be tracked.
- Brokers who “have a buyer” but inquire about multiple aircraft. A real aircraft broker is specific and serious, not fishing for whatever’s available.
- Unverifiable ownership or vague details. If you can’t confirm who actually owns the aircraft, walk away.
At AirSpace Auctions, we take Know Your Customer (KYC) seriously. We talk with every buyer and seller, building real relationships so we know who we’re dealing with. Whether it’s a student pilot buying their first tailwheel trainer, a flight school adding another piston aircraft, or an entrepreneur financing a business jet, trust is everything in aviation.
When something doesn’t feel right, it probably isn’t. Do your research, verify ownership, and never be afraid to ask for proof.