Tuesday 6th December 2016, Dubai
New research1 from Global Jet Capital, a global provider of financing solutions for corporate aircraft, reveals that 59% of business aviation professionals believe the Middle East private jet market is currently attractive for finance companies. Only 15% think it is unattractive.
The survey1 of over 200 business aviation professionals reveals that over the next three years, 41% expect this market to become more attractive, compared to 13% who believe it will become less appealing.
Over the next 10 years, Global Jet Capital estimates that as many as 350 new business jets could be delivered to the Middle East2 worth an estimated $10.5 billion3. It believes that 220 of these jets could be medium to large in categories, which are the types it prefers to finance3.
Analysis by Global Jet Capital reveals that there is currently 739 business jets in the Middle East4.
|Type of private jet||Number of aircraft of this type in the Middle East|
|Medium sized jet||537|
|Very light jet||3|
Simon Davies, Global Jet Capital’s Sales Director for the Middle East, said:
“We specialize in funding the purchase of mid to large private jets, and these typically cost between $25 million and $75 million each. Up to 80% of the purchase price is sourced through external financing and if over 200 of these aircraft are going to be delivered to the Middle East between now and 2025, this becomes an increasingly attractive market for us.”
Global Jet Capital’s research(1) among business aviation professionals reveals that 51% expect the availability of finance for the global business aviation sector will increase between now and 2019, with 8% predicting the increase to be dramatic. Just 21% expect the level of funding to purchase business aircraft to fall over the period, with 23% believing that it will remain at current levels until 2019.
Global Jet Capital launched in 2014 and it 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
2Bombardier Business Aircraft Market Forecast 2016 – 2025
3Global Jet Capital analysis of Bombardier data
4Global Jet Capital analysis of JetNet data (18th November 2016)