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

Routes Americas heads back to USA for 2020

As Routes Americas 2019 draws to a close in the snow-coated city of Quebec, the hosting baton was passed to next year’s hosts, the city of Indianapolis.

NATS sees January UK air traffic growth

January saw 181,362 flights fly through UK airspace according to NATS, an increase of 1.6% compared to January 2018.

Harpoon successfully captures space debris

The RemoveDEBRIS satellite, one of the world’s first attempts to address the build-up of dangerous space debris, has successfully used its on-board harpoon-capture system in orbit.

Airbus decides it will end A380 production

Airbus announced today that it will end production of its superjumbo A380 following a reduction in orders for the aircraft, as main customer Emirates scaled back its A380 requirement in favour of smaller jets.

CAAi leads on EU's Ukraine civil aviation support

The technical cooperation arm of the UK Civil Aviation Authority (UK CAA), CAA International (CAAi), is to lead a consortium appointed by the European Union (EU), to support the sustainable development of civil aviation and the civil

EasyJet considers Alitalia consortium

In a statement issued today, easyJet has announced it is exploring the possibility of being a part of a consortium that might meet the future operational requirements of Alitalia.

ODU 0201311219
See us at
SMIFAVWS BT1302060619Aviation Africa 2019Airborne ISR & C2 Battle Management