Global Jet Capital

Global Jet Capital predicts growth in Asia’s private jet demand

Global Jet Capital is predicting that Asia will experience growth in demand for operating leases for private jet purchases. As Terry Spruce reports in a news article published at the Corporate Jet Investor website on 13 April 2017: “Global Jet Capital expects demand for operating leases for the purchase of mid to heavy private jets to become increasingly popular in Asia over the next three years.”

Trends show that the percentage of business aircraft purchases involving leases is smaller in Asia relative to that of corporate jet markets in other regions, according to Spruce. However, a growing tide of enquiries from Asia is set to reverse this trend. Spruce cites Global Jet Capital’s projections indicating that “in the past few months, Global Jet Capital has seen an increase in enquiries from the region, and it believes this is primarily down to the growing interest in operating leases.”

Global Jet Capital is quick to caution that the growth prospects of the Asian private jet market are heavily dependent on the availability of financing among prospective buyers due to the costly nature of the aircraft. Spruce quotes Global Jet Capital’s Sales Director for Greater China and North Asia, Violet Kwek, as elaborating: “The purchase prices of mid to large private jets are in the mid to high eight figures, and this can have a significant impact on a prospective owner’s balance sheet, their available working capital and lines of credit with existing lenders.”

She added: “In addition to this, the time frames for both planning and ownership of larger aircraft are often significantly longer than for smaller ones, and owners therefore need to understand where the majority of the financial risk falls. Operating leases allow the owner to assume less of the risk of the asset, and buyers in Asia are waking up to the benefits of these schemes fast.”