Business Aviation
2025 EU-US Aerospace Trade Agreement Restores Zero Tariffs
The 2025 EU-US trade deal eliminates tariffs on aerospace products, supporting US jobs and maintaining industry competitiveness.
The NBAA’s Endorsement of Zero-Tariff Aerospace Trade: Analyzing the 2025 EU-US Agreement and Its Strategic Implications for American Aviation
The National Business Aviation Association’s (NBAA) applause for the 2025 EU-US trade agreement marks a pivotal moment in transatlantic aerospace commerce. This agreement, announced on July 27, 2025, and implemented on August 7, 2025, eliminates all tariffs on aircraft and component parts traded between the United States and the European Union. It ends a brief but economically disruptive period of protectionist measures, restoring a zero-tariff environment that has underpinned American aerospace dominance for over four decades.
The significance of this agreement extends beyond tariff elimination. It reflects a strategic recognition of the aerospace sector’s unique position as America’s leading manufacturing export industry, which generates a substantial trade surplus and supports millions of American jobs. NBAA’s endorsement underscores the association’s understanding that this agreement restores competitive equilibrium, reinforces the United States’ leadership in aerospace innovation and safety, and builds upon the foundational 1979 Agreement on Trade in Civil Aircraft.
As the aerospace industry faces evolving global trade dynamics, NBAA’s support for the EU-US agreement signals the importance of stable, predictable trade conditions for maintaining America’s technological and economic edge in one of its most vital sectors.
Historical Foundation: The 1979 Agreement on Trade in Civil Aircraft
The 2025 EU-US agreement’s roots trace back to the 1979 Agreement on Trade in Civil Aircraft, a landmark sectoral trade pact signed by President Carter and 32 other signatories. Taking effect in 1980, this agreement established a comprehensive framework for duty-free trade in civil aircraft, engines, simulators, and related components. It emerged at a time of heightened international competition and economic uncertainty, particularly as Airbus began to challenge American manufacturers.
The 1979 agreement went beyond eliminating tariffs. It required that government aircraft purchases be based on technical and commercial factors, not political considerations, a significant measure to prevent market distortion and ensure fair competition. The agreement’s scope covered not just finished aircraft but also the intricate network of components, engines, and avionics essential to modern aerospace manufacturing.
Safety harmonization was another cornerstone of the agreement. Signatories committed to maintaining certification and manufacturing standards equivalent to the Federal Aviation Administration (FAA), fostering a unified safety culture that has contributed to the exceptional safety record of commercial aviation. Over the decades, the agreement grew to include 33 signatories and 25 observers, facilitating reciprocal tariff-free trade and contributing to more than a 2,000 percent growth in the American aerospace trade surplus since its inception.
“The 1979 Agreement on Trade in Civil Aircraft created the institutional and legal framework that made zero-tariff aerospace trade possible, supporting decades of American leadership in the sector.”
The 2025 EU-US Trade Agreement: Structure and Implementation
The 2025 trade agreement represents a comprehensive restructuring of transatlantic trade relations. While most EU exports to the US now face a 15% tariff or Most Favored Nation status (whichever is higher), the aerospace sector is exempted under a “zero-for-zero” arrangement. This ensures all aircraft, engines, landing gear, seats, avionics, and related parts can move tariff-free between the US and EU.
This provision is particularly notable given the broader context of rising US tariffs in 2025, which reached the highest levels in a century. The agreement reversed the 10% tariff on aircraft and aviation parts imposed earlier in the year, restoring the tariff-free environment that had characterized the industry for over forty years.
Implementation required coordination between government agencies and industry stakeholders. The Trump Administration issued executive orders and the Commerce Department published formal guidance to ensure a smooth transition. The aerospace provisions officially took effect on September 1, 2025, giving manufacturers and airlines time to adjust supply chains and pricing strategies accordingly.
Economic Impact and Industry Significance
The restored zero-tariff environment has broad economic implications. The US aerospace and defense industry is America’s leading export manufacturing sector, generating a trade surplus of $73.9 billion in 2024 and supporting over 2.2 million jobs. In 2023, aerospace exports totaled $135.9 billion, while imports reached $61.4 billion, resulting in a $74.5 billion surplus.
Aerospace jobs are among the highest-paying in US manufacturing, thanks to the technical expertise required. The zero-tariff regime helps maintain the cost competitiveness of American aerospace products, supporting both domestic employment and international market access.
The agreement also facilitates efficient supply chain management. Modern aerospace manufacturing depends on just-in-time delivery and lean inventory practices. Tariff uncertainty complicates these systems, but the restored zero-tariff environment eliminates such inefficiencies, allowing manufacturers to optimize operations based on technical and commercial criteria.
“The zero-for-zero tariff regime will grow jobs, strengthen our economic security and provide a framework for U.S. leadership in manufacturing and safety.” — Airlines for America
Industry and Stakeholder Responses
Industry response to the agreement has been overwhelmingly positive. NBAA President and CEO Ed Bolen praised the deal for restoring a level playing field and fostering innovation. Airlines for America, representing major US carriers, emphasized the benefits for jobs and economic security. Delta Air Lines highlighted the preservation of a zero-tariff environment on aircraft and parts as critical for sustaining US economic growth and protecting the aerospace trade surplus.
The General Aviation Manufacturers Association echoed these sentiments, noting the agreement’s role in supporting the civil aerospace supply chain and fostering industry health. European manufacturers, including Airbus, also welcomed the deal, citing the necessity of a stable and predictable trade environment for an integrated global industry.
Political leaders across the spectrum endorsed the agreement, recognizing its importance for American competitiveness and international partnerships in advanced manufacturing.
Global Trade Context and Strategic Implications
The aerospace sector’s special status in the 2025 agreement is notable given the broader context of rising US tariffs and escalating trade tensions, particularly with China. While average US tariff rates increased dramatically in 2025, the aerospace industry retained a zero-tariff regime, reflecting its strategic importance and America’s technological advantage.
The EU-US agreement also complements a similar deal with the United Kingdom reached in June 2025, reinforcing stable trade relations with America’s traditional allies. This is crucial for maintaining integrated supply chains and international partnerships in aerospace manufacturing.
The agreement goes beyond aerospace. The EU committed to $750 billion in US energy purchases through 2028 and European companies plan $600 billion in US investments during the current presidential term. These commitments create a foundation for mutual interdependence and broader economic stability.
“A stable and predictable trade environment is essential for our highly integrated global aerospace industry.” — Airbus
Challenges and Future Outlook
Despite broad support, challenges remain. Legal uncertainties persist, with ongoing court reviews of the administration’s trade authority. The implementation of the aerospace provisions also requires careful product classification and verification to ensure compliance with technical and safety standards.
Market dynamics are evolving. The Boeing-Airbus duopoly faces potential competition from emerging manufacturers such as China’s Comac, which could alter the benefits of zero-tariff trade for US and EU companies. Technological shifts, including electric and hybrid propulsion and new materials, may require updates to trade agreements to cover innovative products.
Environmental requirements and sustainability standards are becoming increasingly important in both the US and EU. Harmonizing these regulations while maintaining zero-tariff trade will demand ongoing cooperation between regulators and industry.
Conclusion
The NBAA’s endorsement of the 2025 EU-US trade agreement reflects a deep understanding of the conditions necessary for American aerospace excellence. The restoration of zero-tariff trade with the EU eliminates barriers that threatened supply chains, partnerships, and the competitive dynamics that have made aerospace America’s leading export sector.
Looking ahead, the agreement’s success will depend on continued commitment to reciprocal free trade, technological cooperation, and regulatory harmonization. As the aerospace industry faces new competitors, technologies, and environmental challenges, ongoing dialogue and adaptation will be crucial. The NBAA’s advocacy for extending zero-tariff treatment globally underscores the need for a comprehensive multilateral approach to support innovation and competition in this vital industry.
FAQ
What is the main outcome of the 2025 EU-US trade agreement for aerospace?
The agreement restores zero tariffs on aircraft and component parts traded between the US and EU, reversing previous tariff increases and supporting the integrated aerospace supply chain.
How does the agreement impact American aerospace jobs?
By eliminating tariffs, the agreement supports over 2.2 million US aerospace jobs and helps maintain the sector’s competitiveness in global markets.
Why is the aerospace sector treated differently from other industries in the agreement?
Aerospace is a strategic sector where the US maintains technological leadership and a significant trade surplus. Zero-tariff trade supports innovation, safety, and economic security for both sides.
Are there any challenges to the agreement’s implementation?
Yes, legal challenges and the need for careful product classification and regulatory harmonization remain ongoing issues that both governments and industry must address.
Sources: NBAA
Photo Credit: Montage
Business Aviation
ACJ Study: Family Offices Drive Business Aviation Demand
Airbus Corporate Jets research finds 100% of surveyed family office executives expect private jet usage to rise within two years.
Driven by international expansion and the globalization of wealth, family offices are increasingly treating business aviation as a strategic necessity rather than a luxury, according to new research published on October 1, 2026, by Airbus Corporate Jets (ACJ).
The study, which surveyed senior executives managing a collective $303 billion in assets, indicates a structural shift in how ultra-high-net-worth individuals and their wealth management organizations operate. With 70 percent of surveyed family offices opening new branches in different jurisdictions over the past five years, the demand for large and midsize business jets is projected to rise sharply to support cross-border activities and workforce connectivity.
Drivers of international expansion and fleet utilization
The ACJ research highlights specific catalysts for this increased reliance on private fleets. Among the respondents, 90 percent cited a rising number of family members living abroad as the primary driver for international expansion, while 72 percent pointed to increasingly diversified investment portfolios. As a result, 70 percent of family office business aviation travel is currently conducted via private aircraft, outpacing commercial routes.
The trend shows no signs of slowing. According to the press release, 96 percent of family office executives reported that their use of private jets has increased over the past two years. Looking ahead, 100 percent of respondents believe their private jet usage will continue to rise over the next two years, with 85 percent anticipating an increase of between 50 and 100 percent.
“As family offices become more international, business aviation is increasingly becoming a strategic necessity,” stated Chadi Saade, President of Airbus Corporate Jets. “Our study indicates that private aviation is not only enhancing operational efficiency but also enabling a more connected and productive workforce.”
Productivity and operational efficiency
The shift toward private aviation is heavily rooted in operational logistics and time management. The survey found that 89 percent of executives save between two and three hours per trip by utilizing business aviation instead of commercial flights. Survey data also shows 92 percent of executives reported being at least 25 percent more productive while working on private aircraft, citing the ability to handle confidential matters in a secure environment.
Route networks play a critical role in this efficiency. Sixty-seven percent of respondents stated that between 25 and 50 percent of their private aviation trips are to destinations not served directly by commercial airlines. To maximize the utility of these assets, 92 percent of family offices now allow a broader range of staff members to utilize private aircraft for business purposes.
Targeting the ultra-high-net-worth market with the ACJ TwoTwenty
Airbus Corporate Jets, the corporate aviation division of Airbus headquartered in Toulouse, France, currently has over 200 corporate jets in service worldwide. The manufacturer has been actively targeting the family office and ultra-high-net-worth individual (UHNWI) market with its ACJ TwoTwenty.
Marketed as an extra-large business jet, the ACJ TwoTwenty is based on the commercial Airbus A220 airframe. It offers a range of up to 5,650 nautical miles, enabling flights of over 12 hours. ACJ positions the aircraft as occupying the same parking footprint as competitive ultra-long-range jets while delivering operating costs that are one-third lower. The aircraft is also certified to operate with up to a 50 percent blend of sustainable aviation fuel (SAF).
The October 2026 findings align with previous market intelligence gathered by the manufacturer. In September 2026, ACJ released research predicting strong growth in demand for large business aircraft in Asia-Pacific through 2030. Prior to that, a July 2025 study indicated that 93 percent of US-based family offices expected to upgrade to better or newer aircraft models within five years, driven primarily by a focus on operational costs and fuel efficiency.
This projected demand is reflected in the specific aircraft categories family offices intend to utilize. The recent study notes that 43 percent of respondents expect a 50 to 75 percent increase in their use of large jets, while 55 percent predict a similar increase in the use of medium-sized jets.
AirPro News analysis
The data presented by ACJ underscores a maturation in how family offices manage their aviation assets. The fact that 92 percent of these organizations are now allowing non-principal staff to utilize private aircraft indicates a shift away from viewing business jets solely as executive perks. Instead, we are seeing these aircraft deployed as corporate shuttles designed to bypass the inefficiencies of the commercial airline network, particularly for secondary and tertiary markets. If the projected 50 to 100 percent increase in utilization materializes over the next two years, manufacturers offering large-cabin, long-range aircraft with lower direct operating costs will be uniquely positioned to capture this institutionalized wealth segment.
Photo Credit: Airbus Corporate Jets
Business Aviation
Solairus Aviation Acquires Clay Lacy to Build 500-Aircraft Fleet
Solairus Aviation completed its Clay Lacy acquisition on Oct. 1, 2026, creating the world’s largest managed private aircraft fleet.
Solairus Aviation has finalized its acquisition of the aircraft management and charter divisions of Clay Lacy Aviation, creating the world’s largest managed fleet of private jets. The transaction, which officially closed on October 1, 2026, brings Solairus’s total fleet to more than 500 aircraft under management.
The integration combines two major California-based operators, with Solairus absorbing approximately 140 aircraft previously managed by Van Nuys-based Clay Lacy. According to a joint press release, the deal solidifies Petaluma-based Solairus as a pure-play aircraft management company, while allowing Clay Lacy to refocus its operations exclusively on aviation infrastructure and maintenance.
Phased integration and fleet transition
The acquisition agreement was initially announced on August 7, 2026. The October 1 closing marks the completion of the first phase of the corporate integration.
In a press release issued to mark the closing, Solairus Founder and Chief Executive Officer Dan Drohan stated that the transaction secures the company’s position as the leading pure-play aircraft management firm globally.
The transition of clients has proceeded with high retention rates. According to reporting by Private Jet Card Comparisons, Solairus received more than 135 consent assignments from Clay Lacy aircraft management clients prior to the closing date. In an internal memo cited by the outlet, Drohan characterized the high volume of consent assignments as a strong endorsement of the relationships those clients had built with Clay Lacy personnel.
Drohan also cautioned employees that the integration process remains ongoing, noting in the memo that there is still significant work required to merge the two operations. He praised the staff for managing the transition while maintaining daily flight operations.
According to ch-aviation, the second major milestone in the integration process is scheduled to begin on November 1, 2026. This phase will involve the transfer of Clay Lacy charter aircraft to Solairus’s Federal Aviation Administration (FAA) Part 135 charter certificate. Following this regulatory transfer, Solairus is projected to operate approximately 200 aircraft on its Part 135 certificate.
Strategic shift for Clay Lacy Aviation
For Clay Lacy Aviation, a company with a nearly six-decade history in business aviation, the divestiture represents a fundamental shift in corporate strategy. The transaction explicitly excludes the company’s Fixed Base Operator (FBO), maintenance, and real estate businesses, which will remain under their current ownership structure.
Brian Kirkdoffer, Chairman of the Board for Clay Lacy Aviation, told Aviation Week that the company will now operate as a focused aviation infrastructure platform centered entirely on FBOs, aviation real estate, and aircraft maintenance services.
Consolidation in the private aviation market
Solairus Aviation, founded in 2009, operates from over 100 base locations across North America and employs more than 1,200 flight crew and support personnel. Prior to the merger, Solairus managed approximately 360 aircraft.
The combination of the two fleets alters the hierarchy of the United States charter and management market. Before the acquisition, Solairus ranked as the seventh-largest operator in the United States by charter and fractional flight hours, while Clay Lacy ranked 17th. When factoring in Part 91 private operations, Solairus recorded 85,067 flight hours in 2025. According to ARGUS data cited by Private Jet Card Comparisons, this volume placed Solairus fourth in the industry, trailing only NetJets, Flexjet, and Vista Global.
The Solairus and Clay Lacy transaction reflects a broader trend of consolidation within the private aviation sector. Operators are increasingly seeking scale to manage rising operational costs, secure better pricing on fuel and insurance, and improve service reliability. Similar recent market moves include Wheels Up completing its acquisition of GrandView Aviation’s fleet of 17 Embraer Phenom 300 and 300E aircraft in November 2024, and FlyHouse closing on its acquisition of Jets MRO in early 2026 to expand its maintenance network.
AirPro News analysis
The creation of a 500-aircraft managed fleet under a single operator represents a significant milestone in business aviation consolidation. By separating the asset-light management and charter business from the capital-intensive infrastructure and maintenance operations, both Solairus and Clay Lacy are adopting highly specialized business models. For Solairus, the scale achieved through this acquisition provides increased purchasing power for fuel, insurance, and crew training. These are critical advantages in a market facing persistent cost inflation and supply chain constraints. Conversely, Clay Lacy’s decision to exit aircraft management allows it to deploy capital directly into high-margin infrastructure projects, avoiding the margin compression often seen in the highly competitive charter management sector.
Photo Credit: Clay Lacy
Business Aviation
Embraer Posts Record Q3 2026 with 66 Aircraft Delivered
Embraer delivered 66 aircraft in Q3 2026, a 6% year-over-year rise, bringing its nine-month total to 175 aircraft.
Embraer delivered 66 aircraft in the third quarter of 2026, marking the strongest third-quarter performance in the Brazilian manufacturer’s history as its two-year production leveling strategy yields tangible results.
The October 2 announcement confirms the company remains on track to meet its full-year delivery guidance across all divisions, having successfully reduced its historical reliance on a fourth-quarter delivery surge. According to the company’s press release, the 66 deliveries represent a 6 percent year-over-year increase and bring the nine-month total to 175 aircraft.
Executive aviation maintains steady output
The executive jet division anchored the quarter with 41 deliveries, matching the output from the same period in 2025. According to reporting by Aviation International News, the third-quarter executive jet total comprised 22 light jets and 19 midsize and super-midsize aircraft.
The light jet deliveries included two Phenom 100s and 20 Phenom 300s. In the larger categories, Embraer handed over nine Praetor 500s and 10 Praetor 600s. The steady output brings the manufacturer’s year-to-date executive jet delivery total to 115 aircraft.
Global demand for our industry-leading products remains robust across corporate, high-net-worth, and fractional customers, reinforcing confidence in our brand.
Michael Amalfitano, President and CEO of Embraer Executive Jets, told Aviation International News that the consistent performance reflects continued market growth and strong strategic execution. He added that the company remains focused on operational excellence and production discipline to drive long-term profitable growth.
Commercial and defense sectors show growth
Embraer’s commercial aviation division delivered 22 jets in the third quarter, representing a 10 percent increase over the same period last year. The commercial deliveries were evenly split between the manufacturer’s legacy and next-generation platforms, consisting of 11 E175s and 11 E2 family aircraft.
The Defense & Security division also recorded an uptick, delivering three aircraft compared to a single delivery in the third quarter of 2025. The recent defense handovers included one KC-390 Millennium and two A-29 Super Tucanos.
The defense figures follow a series of recent milestones for the KC-390 program. On September 25, 2026, Embraer delivered its first C-390 Millennium to the Uzbekistan Air Force. Days later, on October 1, 2026, the manufacturer advanced plans with the Mahindra Group for potential C-390 industrialization in India, identifying Nagpur as a prospective assembly location.
The shift away from fourth-quarter concentration
The record third-quarter performance highlights a structural shift in Embraer’s manufacturing and delivery cadence. Founded in 1969, the Brazilian aerospace company has delivered more than 9,000 aircraft and established itself as the leading global manufacturer of commercial jets with up to 150 seats. Historically, the company concentrated a disproportionately large percentage of its annual deliveries in the fourth quarter, placing significant strain on completion centers, supply chains, and delivery logistics at year-end.
Over the past two years, Embraer implemented a comprehensive production leveling program designed to distribute deliveries more evenly across the calendar year. The 14 percent increase in total deliveries over the first nine months of 2026, rising from 153 to 175 aircraft, demonstrates the effectiveness of this initiative.
With 115 executive jets and a steady flow of commercial aircraft already delivered, Embraer is positioned to meet its stated 2026 guidance. The company has forecast 160 to 170 executive jet deliveries and 80 to 85 commercial aircraft deliveries for the full year. Embraer will report its final fourth-quarter and full-year 2026 results in early 2027 to confirm final figures.
AirPro News analysis
We view Embraer’s successful production leveling as a critical operational victory, particularly in an aerospace environment still constrained by supply chain bottlenecks. By smoothing the quarter-over-quarter output, the manufacturer reduces the traditional end-of-year scramble that often introduces quality risks and logistical bottlenecks. If the current pace holds, achieving the upper end of the 160 to 170 executive jet guidance appears highly probable. This consistency not only cements the company’s strong position in the light and midsize business jet segments but also provides predictable cash flow and operational stability heading into 2027.
Photo Credit: Embraer
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