in Business Aviation

Demand for business aircraft finance set to increase

Posted 12 October 2017 · Add Comment

Over 77% of business aviation professionals predict an upswing in demand for business aviation finance over the next five years, with more than one in six of those expecting the increase to be “dramatic”.

Only 6% anticipate a fall in demand between now and 2022. The findings were revealed in research among business aviation professionals commissioned by Global Jet Capital, a global leader in financial solutions for corporate aircraft.

The main reason identified for the growing demand for finance is that there is a growing trend for potential buyers to use less of their own capital, a fact cited by 62% of the professionals interviewed.  Two in five (40%) respondents said the overall level of sales of business aircraft will grow resulting in increased demand for finance.

21% also pointed to the fact that operating leases are currently very attractively priced.

Key findings include:

57% of the business aviation professionals think the overall amount of finance made available to this market will increase in the coming year.  25% said this was because more specialist lenders have recently come into the market, while 34% expect to see more specialist lenders entering the sector in the future.  33% think traditional lenders will want to increase their exposure to the business aviation market.

32% of those interviewed believe that the growing size of the business aviation market over the next twelve months will naturally lead to an increase in the amount of finance available.

51% of the study’s respondents think that finance rates will increase between now and 2020.  Only 21% believe they will stay the same as today, while 18% think they will decrease.

* required field

Post a comment

Other Stories
Advertisement
Latest News

IATA: Airlines heading for a decade in the black

The International Air Transport Association (IATA) forecasts the global airline industry net profit to be $35.5 billion in 2019, slightly ahead of the $32.3 billion expected net profit in 2018 (revised down from $33.8 billion forecast

O.R Tambo International Airport announces its best service providers and partners

O.R. Tambo International Airport has honoured the stakeholders and service providers that have helped to ensure that it retains its status as Africa’s largest airport and regional hub.

IATA launches platform for airlines to share turbulence data

The International Air Transport Association (IATA) launched its Turbulence Aware data resource to help airlines avoid turbulence when planning routes tactically in flight.

Royal Air Maroc welcomes first GEnx-powered Boeing 787-9 Aircraft

Royal Air Maroc (RAM) has received its first GEnx-1B-powered Boeing 787-9 Dreamliner aircraft. RAM will eventually operate a fleet of nine GEnx-powered B787 Dreamliners.

ONDA Partners with NAS to bring Innovation to Airports in Marrakech with E-gates at Pearl Lounge

The Moroccan Airports Authority (ONDA) partnered with National Aviation Services (NAS) to launch the first electronic gates (E-gates) at the Pearl Lounge in the Marrakech Menara Airport departures area. This is the first of its kind

Precision Air flight in bird strike

Precision Air has confirmed that its flight PW 722 from Nairobi via Kilimanjaro to Mwanza operated by one of its ATR- 72 aircraft was involved in a bird strike yesterday as it was making the final approach and landing at Mwanza Airport.

TAA SK1009311218
See us at
AviationAfrica_BT0607280219AirCargoAFA_BT220318210219