State-based lender expects annual demand for $255million worth of operating leases
27 November 2017, Boca Raton, FL.
Florida based Global Jet Capital, a global leader in financial solutions for private aircraft, today reveals analysis1 of industry data which predicts that around 30 medium and large business jets could be delivered to Florida owners each year between now and 2025.
The company, which specializes in funding the purchase of mid-sized to heavy jets, expects the total value of these aircraft to be around $1.5bn each year. It has carried out an analysis of the sector which reveals that over $250million of this figure is likely to be purchased through operating leases, a type of financing in which Global Jet Capital is leading the market2.
Global Jet Capital believes that this is likely to be a conservative estimate, as the company’s research amongst business aviation professionals has found that over 77% expect demand for private aviation finance to increase over the next five years, while almost half (46%) expect to see an increase in the use of operating leases for private aircraft purchases over the next twelve months.
The US remains the most attractive country for private aviation finance companies, and as the Florida private aircraft fleet is the second largest in the country (behind Texas), Global Jet Capital expects the state to see significant levels of financing over the coming years.
Dave Labrozzi, Chief Operating Officer at Global Jet Capital, will be speaking at the Corporate Jet Investor Miami 2017 Show this week (28th – 29th November) on the issue of aviation finance. The company is a sponsor of the event, which will be attended by around 250 senior level financiers, brokers, lawyers, manufacturers, operators and other business aviation professionals.
Commenting on the prospects for the Florida business aviation market, he said:
“Florida is a key market, not just within the US, but in global terms. We have a clear focus on mid-sized to heavy private aircraft, and the state has a bigger fleet of these aircraft than anywhere else in the world except Texas.
“At the event this week we will be discussing how owners can best finance their aircraft and minimize their exposure in the current climate. We believe that operating leases, in which the lender takes on the residual risk of the aircraft, will only grow in attractiveness and we are well set to capitalize on that demand.”
Global Jet Capital 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. Global Jet Capital currently has approximately $2.5 billion in assets under management.
Notes to editors
1Global Jet Capital analysis of Bombardier Business Aircraft Market Forecast 2016 – 2025 and JetNet
2Research conducted by Global Jet Capital and Corporate Jet Investor amongst a panel of 144 business aviation professionals between 21st and 26th September 2017.