April 12, 2016, Shanghai
New research1 from Global Jet Capital, a provider of financing solutions for large-cabin, long-range private jets, reveals that 10% of the mid to heavy private jets in Asia Pacific are aged 20 years or older, and 5% are at least 30 years old. The average age of a business jet in the region is 16 years.
Global Jet Capital says there is a significant market in the Asia Pacific region of private jet owners considering upgrading their aircraft. Mid to large private jets typically cost between $25 million and $75 million each, and up to 80% of the funding used to purchase these is sourced through external financing.
Across Asia Pacific, 51 medium sized jets (23%) are at least 20 years old, and the corresponding figure for heavy jets and business jet airlines are 28 (4%) and 16 (20%) respectively.
When looking at the region’s fleet that is at least 30 years old, 34 medium sized jets (15%) fall into this category. The corresponding figures for heavy and business jet airliners are 5 (0.7%) and 7 (8.6%).
Global Jet Capital says these aircraft typically cost between $25 million and $75 million each, and up to 80% of the funding used to purchase these is sourced through external financing.
Leona Qi, Managing Director of Global Jet Capital said: “A number of owners of these older mid to heavy jets in Asia Pacific will be looking to sell and upgrade to newer aircraft. We have significant funds available to lend to them and other clients around the world.”
Global Jet Capital is one of, if not the only, dedicated aviation finance specialist to operate on a global basis. With an extensive team which has a wealth of experience funding a wide variety of aircraft types, the company recently completed the purchase of the aircraft lease and loan portfolio of GE Capital Corporate Aircraft in the Americas. This represented approximately $2.5 billion of net assets, and the company has a further $1 billion to lend to clients to purchase relevant business aircraft in Asia Pacific and elsewhere around the world.
Global Jet Capital, which was launched in 2014, 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.
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 analysis of JetNet data, March 2016
*Investment to be made by funds advised or sub-advised by GSO Capital Partners and Franklin Square Capital Partners or their respective affiliates, as applicable.