450 large business jets delivered at an estimated cost of over US$22 billion
11th April 2017, Shanghai
New research1 from Global Jet Capital, a provider of financing solutions for corporate aircraft, reveals that around 450 mid to heavy private jets were delivered to Asia Pacific between 2012 and 2016, with a combined value estimated at over US$22 billion.
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.
The largest number of deliveries was to China, which purchased 255 business jets at an estimated cost of $12.75 billion. This accounted for 57% of all deliveries to the region over the past five years, signifying the demand for aircraft at the larger end of the spectrum. This was followed by Hong Kong (65 deliveries), India (21 deliveries) and Japan (15 deliveries).
Global Jet Capital believes Asia offers strong opportunities for growth in the business aviation sector. It is seeing a growing number of enquiries in the region to help finance the purchase of large to mid-sized jets, and it has recently appointed Violet Kwek as Sales Director, Greater China. It is also looking to recruit more people to bolster its team in the region. Violet Kwek, Sales Director, Greater China and North Asia at Global Jet Capital said:
“Over the next ten years or so, as many as 90 mid to heavy private jets are set to be delivered to
Asia every year, which is over 17% of the world’s total.2 The region has been taking a bigger
share of global deliveries and it is a key market for us where we are growing our team to help
capitalize on the huge opportunities here.”
|Country||Mid and heavy jets deliveries, 2012-2016||Percentage of deliveries to Asia Pacific||Estimated value of deliveries, 2012- Estimated valued (US$m)|
|Rest of Asia Pacific||18||4%||$900|
|ALL Asia Pacific||450||100%||$22,500|
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 analysis of JetNet data, March 2017
2Global Jet Capital analysis of 2016 – 2025 Bombardier Business Aircraft Market Forecast