US aviation lessor eyes European market

A study by Global Jet Capital, a provider of financing solutions for large-cabin, long-range private jets, reveals that 709 mid to heavy private jets were delivered to Europe between 2011 and 2015, and identifies this as a key market for leasing opportunities in the future.

The company says these aircraft typically cost between $25 million and $75 million each, with their combined value estimated at over $35.4 billion. Up to 80% of this total is sourced through external financing.

While overall deliveries of business jets to Europe are down 35%, when comparing the five-year time periods 2006-2010 with 2011-2015, deliveries of mid to heavy jets have increased by 18%. Similarly, the corresponding figure for global deliveries of larger jets has also decreased by 19%.

The largest number of deliveries was to Germany (134), accounting for one in five of all mid-sized to heavy jet deliveries to Europe between 2011 and 2015. This is an increase of 113% when compared to the previous five-year period (2006-2010). The second largest number of deliveries was to the UK (86 deliveries), followed by Austria (57 deliveries) and Switzerland (55 deliveries).

The aviation finance specialist, which recently completed the purchase of the aircraft lease and loan portfolio of GE Capital Corporate Aircraft in the Americas representing approximately $2.5 billion of net assets, has around $1 billion to lend to clients to purchase relevant business aircraft in Europe and elsewhere around the world.

Dave Labrozzi, chief operating officer of Global Jet Capital said: “Long term, we expect attractive growth in the European business aviation market. Despite deliveries to the region being down as a whole, it has experienced a steady increase in the number of larger aircraft being delivered. “

“Given that we are one of the only dedicated aviation finance specialist to operate on a global basis, and we have significant funds available to lend to clients here wanting to purchase mid to large private jets, it is an exciting market for us,” he added.

New aircraft sales division

Global Jet Capital has recently launched an aircraft sales division, after research also showed that 11.5% of the world’s fleet of mid-sized to heavy business aircraft are currently available for sale, a total of 1,500 aircraft.

The company has recognized that with this large number of pre-owned aircraft on the market, buyers have a wide range of options and can afford to be increasingly demanding.

Global Jet Capital believes that the combination of its experience and the caliber of aircraft it is bringing to the market, along with including maintenance and training support with the purchase of an aircraft, will have considerable appeal to prospective owners.

The aircraft available through Global Jet Capital’s aircraft sales division are those for which it has previously provided financing, and therefore the company has detailed knowledge of the aircraft’s ownership and maintenance history, technology and refurbishment requirements.

The company has also partnered with Jet Support Services Inc (JSSI), the world’s largest independent provider of hourly cost maintenance programs for aircraft engines and airframes. JSSI will provide a six-month comprehensive unscheduled maintenance package with worldwide technical support, and with FlightSafety to provide initial pilot and maintenance training programs.

Labrozzi said: “With a relatively large number of large business aircraft on the pre-owned market, anybody wanting to sell an aircraft has to present the best possible package to prospective buyers. Our new aircraft sales division does just that, and we are confident that what we can offer is unmatched by anyone in the industry. Our aim is to become the first port of call for anyone looking for a pre-owned business aircraft.”