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Business aviation professionals have positive outlook on US market
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Industry professionals see heavy and medium sized business jets as the most attractive to provide finance against
1st November 2016, Orlando, Florida -
New research(1) from Florida-based Global Jet Capital, a global provider of financing solutions for corporate aircraft, reveals the US has around 56.4% of the world’s mid and heavy business jets
In 2015, around 578 mid, heavy and biz jet airliners were delivered globally, and approximately 277 of these were to the US, which equates to around 48%. The corresponding figures in 2014 were 532, 234 and 44%.
This strength in the market is set to continue and could grow further as new research from Global Jet Capital reveals that business aviation professionals view the US market as the most attractive globally. Nearly six out of ten (59%) say it’s currently ‘very attractive’ for business aviation finance companies, and a further 31% describe it as ‘attractive’. The next most attractive country or region is Canada, where the corresponding figures are 34% and 34%.
Dave Labrozzi, Chief Operating Officer of Global Jet Capital, said:
“The US is by far the biggest business aviation market in the world, but it is also the most attractive. Not only is it a well-established and sophisticated market, the US economy remains one of the most attractive on the global stage, and there is a strong correlation between this and prospects for the business aviation sector.
“What is encouraging about our research is that industry professionals are optimistic about the future of the US business aviation market.”
Global Jet Capital’s research with industry professionals also reveals that the majority of those interviewed believe the US will become even more appealing to business aviation finance companies over the next three years. In fact 14% think its attractiveness will increase ‘dramatically’ and 45% think it will increase ‘slightly’. Just 5% think it will become less attractive.
When asked which business aircraft respondents think are currently most attractive to provide finance against, 68% said heavy and large business jets, 44% cited medium sized jets but just 4% and 16% said very light jets and business turboprops respectively.
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 analysis of Jet Net data (October 2016)
2Global Jet Capital commissioned Corporate Jet Investor to conduct research with 200 business aviation professionals in May 2016.