New research1 from Florida based Global Jet Capital, a global provider of financing solutions for corporate aircraft, reveals 90% of business aviation professionals from around the world believe the US market is currently attractive for finance companies, with 59% saying it’s ‘very attractive’. Just 4% describe it as ‘unattractive’.
The corresponding figures for the Canadian business aviation market are 67%, 34% and 7%. Some 200 industry professionals were interviewed, and the majority anticipates these two markets will become even more appealing to business aviation finance companies over the next three years. Nearly six out of ten (59%) believe this about the US market, and just 5% think it will become less attractive. The corresponding figures for the Canadian business aviation market are 42% and 7%.
Speaking at the NBAA Regional Forum in White Plains New York, Dave Labrozzi, Chief Operating Officer Global Jet Capital said:
“A number of industry reports predict a long-term increase in the number of new business jet deliveries and our findings clearly reflect this optimism.
“Earlier this year, Bombardier Business Aircraft predicted that between 2016 and 2025, there would be up to 8,300 new business jet deliveries representing around $250 billion in industry revenue, with larger aircraft continuing to dominate the market. Similarly, when asked which aircraft business aviation professionals believe to be the most appealing to finance companies, the vast majority said heavy to mid-sized jets, which is what we specialize in.”
Global Jet Capital’s research revealed that 51% of business aviation professionals expect financing the purchase of medium sized jets to become more attractive compared to 13% who think it will become less appealing, and the corresponding figures for heavy/ large jets are 48% and 18%.
However, 28% of business aviation professionals believe that very light jets will become less appealing compared to 21% who think the opposite.
| Type of aircraft | Percentage of business aviation executives who think over the next three years this type of aircraft will become more appealing to lend against |
Percentage of business aviation executives who think over the next three years this type of aircraft will become less appealing to lend against |
| Medium sized business jets | 51% | 13% |
| Heavy/large business jets | 48% | 18% |
| Business turboprops | 39% | 16% |
| Business jet airliners | 34% | 21% |
| Light jets | 31% | 23% |
| Very light jets | 21% | 28% |
Global Jet Capital launched in 2014 and is capitalized by three global investment firms – GSO Capital Partners, a Blackstone company in partnership with Franklin Square Capital Partners*; The Carlyle Group; and AE Industrial Partners. In January 2016 Global Jet Capital completed the purchase of GE’s corporate aircraft lease and loan book in the Americas.
The company’s current management team and executive committee is composed of leaders from business jet manufacturers, maintenance and service providers and leading financial institutions who have served the private aircraft industry for a combined 200-plus years and have completed over 3,500 aircraft transactions.
Notes to editors
1Global Jet Capital commissioned Corporate Jet Investor to conduct research with 200 business
aviation professionals in May 2016.
22016 – 2025 Bombardier Business Aircraft Market Forecast