in Aerospace

Lack of finance contributes to slowdown in jet deliveries

Posted 16 November 2016 · Add Comment

The number of business jets being delivered globally fell by 4.7% in the first quarter of this year when compared to the same period in 2015.

 

New research from Global Jet Capital, a global provider of financing solutions for corporate aircraft, reveals that 16% of business aviation professionals believe a lack of business aviation finance has contributed significantly to this decline.  A further 41% believe this has had a slight negative impact on deliveries, while only 36% believe it has had no influence.

Dave Labrozzi, Chief Operating Officer of Global Jet Capital, said:  “A lack of available finance for those looking to buy mid to heavy business jets was one of the main reasons we entered this market.  Some of the traditional lenders were not in a position to meet demand, despite many of the requests for finance being attractive for lenders.

“We have over $1 billion to lend and with a positive long term outlook for the business aviation market, we are optimistic for the future.

Global Jet Capital’s research among 200 business aviation professionals reveals that 51% expect the availability of finance for the sector to 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.  

 
* required field

Post a comment

Other Stories
Advertisement
Latest News

Maycast-Nokes wins National Apprenticeship Award

Maycast-Nokes has won the Medium Employer Of The Year 2017 (East of England) at the regional final of the National Apprenticeship Awards 2017.

Global airport industry climate action surpasses 200 airports

At this year's ACI World & Africa Annual General Assembly (WAGA) hosted by Airports of Mauritius Co, the global airport industry issued an update on the progress it has been making in addressing its CO2 emissions, through the

Rolls-Royce Trent 7000 powers A330neo first test flight

The Rolls-Royce Trent 7000 has successfully powered the new Airbus A330neo into the skies for its first test flight today.

Crawley Borough Council approves Boeing Gatwick hangar

Boeing's proposed plan with Gatwick Airport to build a new aircraft hangar has been granted permission to go ahead by Crawley Borough Council, with full works scheduled to commence later this year.

Inmarsat joins A-ISAC

Inmarsat recently joined the Aviation Information Sharing and Analysis Center (A-ISAC), the trusted international membership association for sharing cybersecurity information targeted at the aviation sector.

Flitetec launching new products at Dubai Airshow

Buckinghamshire-based aircraft interiors company, Flitetec, is set for the global launch of new products when it attends its first Dubai Airshow next month (12-16 November).

Aviation Africa SK18418
See us at
SMI FAV BT1007161117FIL18 BT111017220718Aviation Africa BT18418SMI MilSat BT2907101117SMI AirMissBT0305251017Advanced Engineering BT1007021117